FAC Explorer

Finding 1239161 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-30
Audit: 414027
Organization: Mi'kmaq Nation (ME)
Auditor: RHR SMITH & COMPANY

AI Summary

  • Core Issue: The Mi’Kmaq Nation failed to provide required documentation for federal grant reports, indicating a lack of internal controls over reporting.
  • Impacted Requirements: Non-compliance with Title 2 CFR 200.328 could jeopardize future funding for federal programs.
  • Recommended Follow-Up: Establish procedures to improve reporting controls, ensuring timely submissions and proper documentation retention.

Finding Text

Material Weakness 2025-003 - Reporting Identification of Federal Programs: U. S. Department of Commerce 11.307 – Economic Development Cluster U. S. Department of the Interior 15.021 - Consolidated Tribal Government Program Criteria: Title 2 CFR 200.328 requires programs to submit financial information to the funding agency using standard financial information to the funding agency using standard financial forms. These reports are to be submitted by the required due date and be accurately completed and supported by the underlying accounting records. Condition: During audit procedures the Mi’Kmaq Nation was unable to provide any documentation on the grant reports. Cause: The Mi’Kmaq Nation does not have the necessary internal controls over reporting. Effect: Failure to comply with the reporting requirements could impact the ability to receive continued and future funding for federal programs. Identification of Questioned Costs: None identified. Context: Out of a population of 8 quarterly reports for 2 programs, the Mi’Kmaq Nation was unable to provide required program reporting documents for any of them. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that procedures are established to add controls over reporting to ensure the Mi’Kmaq Nation is compliant with grant reporting requirements including timely submission of reports and maintaining historical files. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Mi’Kmaq Nation.

Corrective Action Plan

CORRECTIVE ACTION PLAN - Concerning Findings 2025-003 Contact Person Responsible for Corrective Action: Andrew Levesque, CFO Corrective Action: The Mi'kmaq Nation will take the following actions to address finding 2025-003 as stated below: Condition: To date, the Nation lacks proper internal controls to ensure timely programmatic reporting and historical file maintenance. Management's Response: The Nation, through a new financial director, and finance team has started training staff and those responsible for these functions. With increased help in the financial department, we are now able to and anticipate meeting this function as required by the program. Anticipated Completion Date: December 31, 2026 Sincerely, Sheila McCormack, Tribal Chief

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1239153 2025-003
    Material Weakness Repeat
  • 1239154 2025-003
    Material Weakness Repeat
  • 1239155 2025-003
    Material Weakness Repeat
  • 1239156 2025-003
    Material Weakness Repeat
  • 1239157 2025-003
    Material Weakness Repeat
  • 1239158 2025-003
    Material Weakness Repeat
  • 1239159 2025-003
    Material Weakness Repeat
  • 1239160 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $1.99M
93.441 INDIAN SELF-DETERMINATION $1.90M
14.867 INDIAN HOUSING BLOCK GRANTS $947,466
15.021 CONSOLIDATED TRIBAL GOVERNMENT PROGRAM $394,269
93.600 HEAD START $370,738
66.605 PERFORMANCE PARTNERSHIP GRANTS $273,891
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES_PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $236,667
16.587 VIOLENCE AGAINST WOMEN DISCRETIONARY GRANTS FOR INDIAN TRIBAL GOVERNMENTS $217,123
93.237 SPECIAL DIABETES PROGRAM FOR INDIANS_DIABETES PREVENTION AND TREATMENT PROJECTS $149,009
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $134,168
93.047 SPECIAL PROGRAMS FOR THE AGING_TITLE VI, PART A, GRANTS TO INDIAN TRIBES_PART B, GRANTS TO NATIVE HAWAIIANS $118,958
21.026 HOMEOWNER ASSISTANCE FUND $102,441
16.548 TITLE V_DELINQUENCY PREVENTION PROGRAM $101,371
16.841 VOCA TRIBAL VICTIM SERVICES SET-ASIDE PROGRAM $87,556
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $76,001
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $53,601
10.902 SOIL AND WATER CONSERVATION $34,293
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $33,814
10.558 CHILD AND ADULT CARE FOOD PROGRAM $31,135
93.054 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE VI, PART C, GRANTS TO INDIAN TRIBES AND NATIVE HAWAIIANS $30,960
84.060 INDIAN EDUCATION_GRANTS TO LOCAL EDUCATIONAL AGENCIES $25,354
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $24,803
66.034 SURVEYS, STUDIES, RESEARCH, INVESTIGATIONS, DEMONSTRATIONS, AND SPECIAL PURPOSE ACTIVITIES RELATING TO THE CLEAN AIR ACT $17,110
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $16,072
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $15,530
17.265 NATIVE AMERICAN EMPLOYMENT AND TRAINING $10,281
93.497 FAMILY VIOLENCE PREVENTION AND SERVICES/ SEXUAL ASSAULT/RAPE CRISIS SERVICES AND SUPPORTS $8,930
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION_ALLOCATION TO STATES $8,413
16.726 JUVENILE MENTORING PROGRAM $2,908
15.041 ENVIRONMENTAL MANAGEMENT_INDIAN PROGRAMS $2,556
15.033 ROAD MAINTENANCE_INDIAN ROADS $960
66.468 CAPITALIZATION GRANTS FOR DRINKING WATER STATE REVOLVING FUNDS $666
93.499 LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM $379
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $221
12.116 DEPARTMENT OF DEFENSE APPROPRIATION ACT OF 2003 $170
66.802 SUPERFUND STATE, POLITICAL SUBDIVISION, AND INDIAN TRIBE SITE-SPECIFIC COOPERATIVE AGREEMENTS $170
20.205 HIGHWAY PLANNING AND CONSTRUCTION $16