FAC Explorer

Finding 32941 (2022-004)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-06-29
Audit: 24470
Organization: Bristol Bay Area Health Corporation and Subsidiary (AK)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: Internal controls failed to ensure that federal funds were used for allowable costs, leading to potential reimbursement for unsupported expenses.
  • Impacted Requirements: Management must provide assurance that costs align with federal guidelines, particularly for the Tribal Self Governance Program.
  • Recommended Follow-Up: Management should enhance review processes and monitoring to ensure compliance with expenditure policies and prevent future issues.

Finding Text

Finding 2022-004 Activities allowed and unallowed / allowable costs ? Significant Deficiency in Internal Control Over Compliance Identification of the federal program ALN 93.210 Tribal Self Governance Program - IHS Compact/Funding Agreements. Award No. 58G950015-21. Criteria or specific requirement Management is responsible to provide reasonable assurance that the costs using federal funds are allowable and in accordance with the types of activities allowed per the compliance supplement. Condition Internal control procedures failed to catch lack of proper support for amounts reported as expenditure for the program based on allocation of amounts in invoices. Cause The finance department experienced heavy turnover during 2022 that resulted in several positions being vacant for most of the year. These staffing shortages resulted in a lack of time for sufficient review. Effect or potential effect The Organization might have been reimbursed for the costs that haven?t been incurred to support grant activities. Questioned Costs $449 Context During our testwork over non-payroll costs charged to the program, we noted 2 out of 40 items selected for testwork that did not have proper supporting documentation. Identification as a repeat finding None. Recommendation Management should review existing processes and controls over review of expenditures and add monitoring procedures to ensure management policies are followed at the Organization. Views of Responsible Official and Planned Corrective Action Management agrees with this finding. Management has hired additional staffs and filled vacancies to ensure internal control procedures for timely review of expenditures.

Corrective Action Plan

Finding 2022-004 Activities allowed and unallowed / allowable costs ? Significant Deficiency in Internal Control Over Compliance. Planned Corrective Actions: The Finance Department had more open vacancies than filled positions during FY 2022. As a result, a satellite office has been opened in Anchorage, AK resulting in filling nearly all vacancies as of March 2023. We agree with this finding and have taken steps to ensure that all program expenditures have adequate supporting documentation.

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 32942 2022-004
    Significant Deficiency
  • 32943 2022-004
    Significant Deficiency
  • 32944 2022-004
    Significant Deficiency
  • 32945 2022-004
    Significant Deficiency
  • 609383 2022-004
    Significant Deficiency
  • 609384 2022-004
    Significant Deficiency
  • 609385 2022-004
    Significant Deficiency
  • 609386 2022-004
    Significant Deficiency
  • 609387 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.210 Tribal Self-Governance Program: Ihs Compacts/funding Agreements $2.17M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $2.08M
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $1.21M
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $891,591
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $726,144
93.155 Rural Health Research Centers $258,376
16.575 Crime Victim Assistance $216,587
93.558 Temporary Assistance for Needy Families $210,187
93.767 Children's Health Insurance Program $167,474
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $165,274
66.202 Congressionally Mandated Projects $147,173
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $81,282
66.926 Indian Environmental General Assistance Program (gap) $74,757
84.181 Special Education-Grants for Infants and Families $70,425
93.800 Organized Approaches to Increase Colorectal Cancer Screening $57,284
93.284 Injury Prevention Program for American Indians and Alaskan Natives_cooperative Agreements $54,237
10.760 Water and Waste Disposal Systems for Rural Communities $22,209
93.301 Small Rural Hospital Improvement Grant Program $11,855