Finding 1238395 (2021-002)

2021-002 Procurement, Suspension and Debarment – Material Weakness in Internal Control over Financial Reporting and Federal Awards and Noncompliance Identification of federal programs: 14.862 Indian Community Development Block Grant Program Criteria: Title 2 U.S. Code Part 200.320 requires a nonfederal entity to adhere to certain procurement methods when spending federal awards. Condition: The Council was not able to provide adequate documentation to ensure contracts and procurements complied with federal requirements and the Council’s own financial statement policies and procedures. Cause: The Council was adjusting to challenges created by the COVID-19 pandemic. Effect or potential effect: The Council may not have been in compliance with federal requirements necessary for administering federal grants awarded. Questioned Costs: None Context: The auditor noted 2 contractors in the expenditure population that would have been subject to procurement standards; however, neither one had procurement documentation that could be located to demonstrate compliance with Title 2 U.S. Code Part 200.320 or the Council’s procurement policies. Identification of Repeat Finding: This finding was also reported in the prior year as Finding 2020-002. Recommendations: We recommend Council review its financial policies and procedures over procurement requirements and implement internal controls to conform with federal spending. Views of Responsible Officials: Management agrees with this finding. See Corrective Action Plan.