Finding Text
Finding 2022-007 Lack of Internal Controls Over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of the Treasury, respectively Federal Programs: Tribal Self-Governance and Determination Cluster (TSGDC) and Coronavirus State and Local Fiscal Recovery Funds (CSLFRF), respectively CFDA Numbers: 93.441 (TSGDC) and 21.027 (CSLFRF), respectively Award Number: 0243-12-0006 (TSGDC) and SLFRP2520/4754 (CSLFRF), respectively Award Year: 2020, 2021, 2022 (TSGDC) and 2021 (CSLFRF), respectively Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Per OMB 200.403(a) costs should be necessary and reasonable for the performance of the federal award. Condition and Context: The Community could not provide adequate supporting documentation for costs charged to the programs. During our review of non-payroll costs charged to the TSGDC program, the Community could not provide supporting documentation (invoice, check request, or management approval) for 6 of the 14 non-payroll transactions charged to the program. During our review of non-payroll costs charged to the CSLFRF program, the Community could not provide supporting documentation (invoice, check request, or management approval) for 3 of the 26 non-payroll transactions charged to the program. Cause: Lack of internal controls over supporting documentation and approval over expenditures charged to the programs. Effect: Lack of internal control over cash disbursements pose the risk that the Community will expend federal funds for non-grant purposes. Questioned costs: Actual and likely questioned costs are below the reporting threshold of $25,000. Repeat finding: This is a repeat of Finding 2021-007; therefore, we believe this to be a systemic issue. Recommendation: We recommend that management implement policies and procedures to ensure that only allowable costs are charged to the program and that supporting documentation be kept for all transactions. Management Response: Management agrees with this finding, see Corrective Action Plan.