Finding Text
Finding 2024-004: Significant Deficiency - Reporting Program: Indian School Equalization; Indian Education Facilities, Operations and Maintenance Assistance Listing Number: 15.042; 15.047 Federal Agency: U.S. Department of the Interior Federal Award Identification Number: N/A Federal Award Year: June 30, 2024 Repeat of Prior Year Finding 2023-004 Criteria: The Uniform Guidance requires that an entity establish a system of properly-functioning internal controls and that all reporting be submitted accurately and within the time frames prescribed by the grantors. Condition: The annual SF-425 was not reviewed by someone other than the preparer of the report. Questioned Costs: None noted. Context: There were three annual SF-425 reports required for the current year, each of which did not have review of the calculation of the amounts in the reports. The sample was not a statistically valid sample. Effect: The report may contain inaccurate information. Cause: The Club has not implemented an effective system of internal controls over reporting to ensure that the reports are properly reviewed by someone other than the preparer. Recommendation: We recommend that the Club implement proper review of the reporting process. Someone other than the preparer of the report should provide adequate review prior to finalizing and submitting the report. This review should include verification that amounts included on the report agree to the underlying general ledger detail as of the report date and verification that the report is submitted by the due date. These procedures should be documented and retained. Management’s Response: The Club agrees with this finding as the annual SF-425 report was not submitted by the appropriate deadline. The Club will also establish a review process in their policy and procedures to ensure that someone other than the person preparing the report reviews the SF-425 before submitting to ensure accurate and timely reporting. The Club will comply with Uniform Guidance requirements of SF-425 by submitting an annual report to the grantors by its due date.