Finding 1181380 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-03-18

AI Summary

  • Core Issue: Lack of documented review and approval for reports submitted to the National Park Service indicates a significant weakness in internal controls.
  • Impacted Requirements: Noncompliance with 2 CFR 200.328 and 2 CFR 200.329(c)(1) due to insufficient internal control documentation and authorization.
  • Recommended Follow-Up: Update internal control policies to ensure proper review and approval processes for reporting requirements are established and documented.

Finding Text

2023-004 – Department of the Interior Federal Program Name: Natural Resource Stewardship - Pass-Through Agency: N/A Assistance Listing Number: 15.944 Federal Award Identification Year: 2023 Award Period: 10/01/2022 – 09/30/2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance (Modified Opinion) Criteria: 2 CFR 200.328 - Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report or such future, OMB approved, governmentwide data elements available from the OMB designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor= more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. 2 CFR 200.329(c)(1) -Requirements state that the non-Federal entity must submit performance reports at the interval required by the Federal awarding agency or passthrough entity to best inform improvements in program outcomes and productivity. Condition: For the reports submitted to the National Park Service, there was not documented review and approval of the submission by management. Context: Internal controls need to be formally documented as well as have support and authorization. With no authorization or proof that the internal control was completed, we cannot rely on the controls. Effect: Not having internal controls formalized and documented can lead to higher risk of noncompliance and misreporting. Cause: Internal controls are not formalized or documented. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that CIES modifies its internal control policies for general review and approval of the reporting requirements set forth by the criteria listed above. Management’s Views: See separate corrective action plan.

Corrective Action Plan

2023-004 Financial Reporting Requirements Recommendation: Auditors recommend that CIES modify its internal control policies for general review and approval of the reporting requirements set forth by the criteria listed. Criteria: 2 CIR 200.328 – Unless otherwise approved by OMB, the Federal awarding agency must solicit only the OMB-approved governmentwide data elements for collection of financial information (at time of publication the Federal Financial Report) or such future OMB approved, governmentwide data elements available from the OMB designated standards lead. This information must be collected with the frequency required by the terms and conditions of the Federal award, but no less frequently than annually nor more frequently than quarterly except in unusual circumstances, for example where more frequent reporting is necessary for the effective monitoring of the Federal award or could significantly affect program outcomes, and preferably in coordination with performance reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: CIES will implement a process whereby financial information required to be reported to the Federal awarding agency will be prepared by CIES administrative staff (i.e., Administrative Assistant, Chief Operations Officer) and reviewed and approved before submittal by the Executive Director. The review and approval process will be documented and stored within CIES internal electronic files, as appropriate, for each fiscal year. Name(s) of the contact person(s) responsible for corrective action: Michael Parker, Executive Director Planned completion date for corrective action plan: March 2026

Categories

Reporting Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1181379 2023-003
    Material Weakness Repeat
  • 1181381 2023-005
    Material Weakness Repeat
  • 1181382 2023-006
    Material Weakness Repeat
  • 1181383 2023-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
12.005 CONSERVATION AND REHABILITATION OF NATURAL RESOURCES ON MILITARY INSTALLATIONS $85,246
15.944 NATURAL RESOURCE STEWARDSHIP $23,300
15.637 MIGRATORY BIRD JOINT VENTURES $15,000