Finding Text
Pass-Through Entity: Federated States of Micronesia National Government Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D24AF00334 Area: Period of Performance Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.303(a), the recipient must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: For two (8%) of the twenty‑five transactions tested, aggregating $45,413 out of a total population of $12,334,264, CSG voided expenditures recorded in their SEFA. No questioned cost identified because it was subsequently corrected and it is only an internal control finding. Cause: CSG did not timely reverse voided expenditure during the correct fiscal year. Effect or Potential Effect: CSG’s current control and procedure for monitoring and correcting voided transactions is not efficiently designed. Identification as a Repeat Finding: Finding No. 2023-004. Recommendation: CSG should strengthen controls to ensure that only valid, incurred, and paid costs are recorded and reported within the correct period of performance and that unsupported expenditures are identified and corrected timely. Views of Responsible Officials: The State agrees with the finding. Corrective Action is described in the Corrective Action Plan