Finding 1181382 (2023-006)

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

AI Summary

  • Core Issue: There is a significant weakness in internal controls over compliance, specifically regarding cash management and reimbursement requests.
  • Impacted Requirements: The lack of documented review and approval violates 2 CFR 200.8(a) and 2 CFR 200.208(c)(1), which mandate proper oversight of federal award conditions.
  • Recommended Follow-Up: CIES should revise its internal control policies to ensure all reporting requirements are formally reviewed and approved by management.

Finding Text

2023-006 – 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 200.8(a) – Federal agencies are responsible for ensuring that specific Federal award conditions and performance expectations are consistent with the program design. 2 CFR 200.208 (c)(1) Specific conditions may include requiring payments as reimbursements rather than advance payments Condition: Regarding cash management and the requesting of reimbursement, there was not documented review and approval of the submission by management. Condition: Known: $672,870 Likely: $672,870. 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

2023-006 Cash Receival – Proper Procedures Recommendation: Auditors recommend that CIES modifies its internal control policies for general review and approval of the reporting requirements set forth by the criteria listed. Criteria: 2 CFR 200.8(a) – Federal agencies responsible for ensuring that specific Federal award conditions and performance expectations are consistent with the program design. 2 CFR 200.208(c)(1) Specific conditions may include requiring payments as reimbursements rather than advance payments. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: As feasible, CIES will implement proper procedures and controls surrounding the receival of cash to ensure proper segregation of duties for funds received. Cash, including checks, received will be received and deposited by one of the CIES’ administrative staff and a different CIES’ administrative staff member will enter the data into the CIES’ financial records. Verification of entry and deposit will be conducted through monthly reconciliations of bank accounts. 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

Cash Management

Other Findings in this Audit

  • 1181379 2023-003
    Material Weakness Repeat
  • 1181380 2023-004
    Material Weakness Repeat
  • 1181381 2023-005
    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