FAC Explorer

Finding 1225670 (2024-014)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-08-04
Audit: 408530
Organization: State of Kosrae (FM)
Auditor: ERNST AND YOUNG LLP

AI Summary

  • Core Issue: FSMNG failed to conduct annual performance evaluations for all nine employees funded under the Education Sector and SEG for FY2024.
  • Impacted Requirements: This noncompliance with grant terms means FSMNG did not meet the requirement for maintaining performance evaluations in personnel files.
  • Recommended Follow-Up: FSMNG should create monitoring procedures and consider assigning a dedicated employee to ensure annual evaluations are completed and documented moving forward.

Finding Text

Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: D22AF00326 and D23AF000263 Area: Special Tests and Provisions – Annual Performance Reviews Questioned Costs: -$0 Criteria: In accordance with grant award terms and conditions, all personnel funded under Education Sector and Supplemental Education Grant (SEG) are required to undergo an annual performance evaluation which should be maintained as part of the personnel files and made available when requested for purposes of grant oversight or audits. Condition: For nine (or 100%) out of nine employees, FSMNG did not perform the annual performance evaluation for fiscal year 2024. Cause: FSMNG does not have any established policy and monitoring procedure to ensure that the annual evaluation of Education Sector and SEG funded employees are performed. Effect or potential effect: FSMNG is in noncompliance with the requirement. No questioned cost is identified as the nature of noncompliance is nonmonetary. Identification as a Repeat Finding: Finding No. 2023-010 Recommendation: FSMNG should establish monitoring procedures to ensure that the funded personnels under the Education Sector and the SEG are evaluated on an annual basis. FSMNG could consider assigning a dedicated employee that would monitor compliance and perform the required procedures. Views of Responsible Officials: Management agrees with the finding. The department concerned was not aware of the requirement for annual performance evaluations of personnel funded under the Education Sector and Supplemental Education Grant (SEG) during the fiscal year under audit. The requirement has been implemented from FY2025 onwards, with the annual performance evaluations having commenced in 2025. It should be noted that this is a legacy audit, and matters identified in this fiscal year audits are being addressed in the current year moving forward. The department is now well aware of the requirement and will ensure compliance, with annual performance evaluations performed for all Education Sector and SEG-funded personnel and maintained as part of the personnel files, available for grant oversight and audit purposes. In line with the auditors' recommendation, monitoring procedures will be established to ensure the funded personnel are evaluated on an annual basis, and consideration will be given to assigning a dedicated employee to monitor compliance and perform the required procedures. No questioned costs arise, as the nature of the noncompliance is nonmonetary. Summary Schedule — Remarks (2024-014): Repeat 2023-010. Finding agreed. The department was not aware of the annual performance evaluation requirement for SEG/Education Sector funded personnel; the requirement has been implemented from FY2025 onwards, with evaluations commenced in 2025. As a legacy audit, matters identified are addressed in the current year moving forward — the department is now well aware and will ensure compliance, with evaluations maintained in personnel files, monitoring procedures to be established, and consideration of a dedicated compliance employee per the recommendation. No questioned costs — nonmonetary.

Corrective Action Plan

Finding Number 2024-014 (Repeat 2023-010) Corrective Action Plan Special Tests and Provisions — Annual Performance Reviews — AL 15.875 (U.S. Department of the Interior) • Continue and complete the annual performance evaluations, commenced in 2025, for all personnel funded under the Education Sector Grant and the Supplemental Education Grant, and maintain the completed evaluations in the personnel files, available for grant oversight and audit purposes. • Obtain and maintain a complete listing of all SEG and Education Sector funded personnel, reconciled to payroll, as the basis for scheduling the required evaluations. • Establish written monitoring procedures, including a schedule of evaluations due and periodic status reporting, to ensure that funded personnel are evaluated on an annual basis. • Assign a dedicated employee to monitor compliance with the requirement and perform the required procedures, in line with the auditors’ recommendation. • Include the requirement in the compliance team’s periodic compliance checks and in the orientation of program and departmental staff. Anticipated Completion Date 9/30/2027 Responsible Person (Contact Details) FSM Department of Education [Contact details to be provided]

Categories

Special Tests & Provisions Subrecipient Monitoring Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1225621 2024-010
    Material Weakness Repeat
  • 1225622 2024-011
    Material Weakness Repeat
  • 1225623 2024-012
    Material Weakness Repeat
  • 1225624 2024-013
    Material Weakness Repeat
  • 1225625 2024-014
    Material Weakness Repeat
  • 1225626 2024-010
    Material Weakness Repeat
  • 1225627 2024-011
    Material Weakness Repeat
  • 1225628 2024-012
    Material Weakness Repeat
  • 1225629 2024-013
    Material Weakness Repeat
  • 1225630 2024-014
    Material Weakness Repeat
  • 1225631 2024-010
    Material Weakness Repeat
  • 1225632 2024-011
    Material Weakness Repeat
  • 1225633 2024-012
    Material Weakness Repeat
  • 1225634 2024-013
    Material Weakness Repeat
  • 1225635 2024-014
    Material Weakness Repeat
  • 1225636 2024-010
    Material Weakness Repeat
  • 1225637 2024-011
    Material Weakness Repeat
  • 1225638 2024-012
    Material Weakness Repeat
  • 1225639 2024-013
    Material Weakness Repeat
  • 1225640 2024-014
    Material Weakness Repeat
  • 1225641 2024-010
    Material Weakness Repeat
  • 1225642 2024-011
    Material Weakness Repeat
  • 1225643 2024-012
    Material Weakness Repeat
  • 1225644 2024-013
    Material Weakness Repeat
  • 1225645 2024-014
    Material Weakness Repeat
  • 1225646 2024-010
    Material Weakness Repeat
  • 1225647 2024-011
    Material Weakness Repeat
  • 1225648 2024-012
    Material Weakness Repeat
  • 1225649 2024-013
    Material Weakness Repeat
  • 1225650 2024-014
    Material Weakness Repeat
  • 1225651 2024-010
    Material Weakness Repeat
  • 1225652 2024-011
    Material Weakness Repeat
  • 1225653 2024-012
    Material Weakness Repeat
  • 1225654 2024-013
    Material Weakness Repeat
  • 1225655 2024-014
    Material Weakness Repeat
  • 1225656 2024-010
    Material Weakness Repeat
  • 1225657 2024-011
    Material Weakness Repeat
  • 1225658 2024-012
    Material Weakness Repeat
  • 1225659 2024-013
    Material Weakness Repeat
  • 1225660 2024-014
    Material Weakness Repeat
  • 1225661 2024-010
    Material Weakness Repeat
  • 1225662 2024-011
    Material Weakness Repeat
  • 1225663 2024-012
    Material Weakness Repeat
  • 1225664 2024-013
    Material Weakness Repeat
  • 1225665 2024-014
    Material Weakness Repeat
  • 1225666 2024-010
    Material Weakness Repeat
  • 1225667 2024-011
    Material Weakness Repeat
  • 1225668 2024-012
    Material Weakness Repeat
  • 1225669 2024-013
    Material Weakness Repeat
  • 1225671 2024-015
    Material Weakness Repeat
  • 1225672 2024-016
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $10.49M
84.027 SPECIAL EDUCATION GRANTS TO STATES $4.32M
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $2.36M
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $1.85M
11.460 SPECIAL OCEANIC AND ATMOSPHERIC PROJECTS $1.76M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $841,860
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $785,177
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $693,063
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $547,187
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $499,605
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $440,347
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $391,794
84.325 SPECIAL EDUCATION - PERSONNEL DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES $374,133
93.377 PREVENTION AND CONTROL OF CHRONIC DISEASE AND ASSOCIATED RISK FACTORS IN THE U.S. AFFILIATED PACIFIC ISLANDS, U.S. VIRGIN ISLANDS, AND P. R. $373,533
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $301,021
93.217 FAMILY PLANNING SERVICES $265,142
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $256,869
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $245,341
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $238,123
93.251 EARLY HEARING DETECTION AND INTERVENTION $211,363
93.110 SPECIAL PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $188,904
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $175,874
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $168,368
10.675 URBAN AND COMMUNITY FORESTRY PROGRAM $136,503
45.310 GRANTS TO STATES $135,599
93.788 OPIOID STR $105,553
10.664 COOPERATIVE FORESTRY ASSISTANCE $103,437
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $78,929
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $50,824
93.336 BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM $45,515
17.225 UNEMPLOYMENT INSURANCE $43,064
93.127 EMERGENCY MEDICAL SERVICES FOR CHILDREN $35,838
93.235 TITLE V STATE SEXUAL RISK AVOIDANCE EDUCATION (TITLE V STATE SRAE) PROGRAM $34,846
93.917 HIV CARE FORMULA GRANTS $33,732
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $30,025
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $18,767
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION€™S HEALTH $8,854
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $2,273