FAC Explorer

Finding 1217502 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-12
Audit: 403662
Organization: Metlakatla Indian Community (AK)
Auditor: ALTMAN ROGERS & CO

AI Summary

  • Core Issue: The NALEMP program failed to submit accurate quarterly financial reports, leading to discrepancies with the general ledger.
  • Impacted Requirements: Quarterly reports must be submitted within 30 days, and noncompliance risks loss of Federal funding.
  • Recommended Follow-Up: Ensure compliance with all reporting requirements and implement stronger internal controls to prevent future issues.

Finding Text

Finding 2025-003 Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of Defense Federal Programs: Native American Lands Environmental Mitigation Program (NALEMP) ALN: 12.116 (NALEMP) Award Numbers: W911KB-23-2-0303 (NALEMP) Award Years: 2023 (NALMEP) Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: The NALEMP program requires quarterly financial reports to be submitted within 30 days of the end of the quarter. Condition and Context: During the testing of the NALEMP program, we noted that the expenditure amounts being reported on the quarterly reports did not agree to the general ledger. At the end of the grant period this resulted in a large amount of expenditures that had not been properly reported to the granting agency and the Community recorded a large grant receivable balance. Cause: Lack of internal control over reporting. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat Finding: No. We believe the finding to be an isolated instance and not a systemic issue. Recommendation: We recommend the Community complies with all reporting requirements. Managements Response: Management agrees with this finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2025-003 Noncompliance with Reporting Requirements Name of Contact Person: Kyonia Hudson, Finance Director Corrective Action: Responsibility for financial reporting and drawdown requests has been transitioned to the Grants Accountant and aligned with the reporting and reconciliation procedures used for MIC’s federal awards. Finance will continue monitoring grant reporting to ensure financial reports are reviewed, reconcile to the general ledger, and submitted timely to the granting agency. Proposed Completion Date: Implemented in FY2026, ongoing monitoring in place.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1217503 2025-004
    Material Weakness Repeat
  • 1217504 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.210 TRIBAL SELF-GOVERNANCE PROGRAM: IHS COMPACTS/FUNDING AGREEMENTS $7.68M
15.022 TRIBAL SELF-GOVERNANCE $2.85M
15.034 AGRICULTURE ON INDIAN LANDS $2.30M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.97M
93.600 HEAD START $1.43M
15.021 CONSOLIDATED TRIBAL GOVERNMENT $1.14M
12.116 DEPARTMENT OF DEFENSE APPROPRIATION ACT OF 2003 $1.08M
15.035 FORESTRY ON INDIAN LANDS $1.07M
15.156 TRIBAL CLIMATE RESILIENCE $455,568
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $440,368
15.024 INDIAN SELF-DETERMINATION CONTRACT SUPPORT $407,322
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $384,095
66.926 INDIAN ENVIRONMENTAL GENERAL ASSISTANCE PROGRAM (GAP) $324,456
93.581 IMPROVING THE CAPABILITY OF INDIAN TRIBAL GOVERNMENTS TO REGULATE ENVIRONMENTAL QUALITY $236,540
11.469 CONGRESSIONALLY IDENTIFIED AWARDS AND PROJECTS $234,852
15.148 TRIBAL ENERGY DEVELOPMENT CAPACITY GRANTS $180,000
84.250 AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES $179,349
66.616 ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM $159,980
10.182 PANDEMIC RELIEF ACTIVITIES: LOCAL FOOD PURCHASE AGREEMENTS WITH STATES, TRIBES, AND LOCAL GOVERNMENTS $158,723
93.237 SPECIAL DIABETES PROGRAM FOR INDIANS DIABETES PREVENTION AND TREATMENT PROJECTS $142,826
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $140,772
15.032 INDIAN ECONOMIC DEVELOPMENT $132,936
66.920 SOLID WASTE INFRASTRUCTURE FOR RECYCLING INFRASTRUCTURE GRANTS $132,406
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $131,128
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $122,278
20.823 PORT INFRASTRUCTURE DEVELOPMENT PROGRAM $110,000
66.817 STATE AND TRIBAL RESPONSE PROGRAM GRANTS $99,827
10.558 CHILD AND ADULT CARE FOOD PROGRAM $88,587
14.862 INDIAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM $84,811
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $82,935
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $75,000
66.419 WATER POLLUTION CONTROL STATE, INTERSTATE, AND TRIBAL PROGRAM SUPPORT $59,360
15.685 NATIONAL FISH PASSAGE $54,106
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $39,366
15.033 ROAD MAINTENANCE INDIAN ROADS $33,605
30.401 Tribal Employment Rights Office $32,000
93.054 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE VI, PART C, GRANTS TO INDIAN TRIBES AND NATIVE HAWAIIANS $30,954
66.046 CLIMATE POLLUTION REDUCTION GRANTS $29,515
20.939 SAFE STREETS AND ROADS FOR ALL $20,000
11.437 FISHERIES DATA PROGRAM $12,715
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $11,364
93.047 SPECIAL PROGRAMS FOR THE AGING, TITLE VI, PART A, GRANTS TO INDIAN TRIBES, PART B, GRANTS TO NATIVE HAWAIIANS $9,874
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $9,284
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $6,005
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $5,625
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $3,179
10.680 FOREST HEALTH PROTECTION $2,987
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $2,916
66.202 CONGRESSIONALLY MANDATED PROJECTS $736