Finding Text
Program Information:
See the audit finding for chart/table
Criteria or specific requirement:
AL #93.600
SF-429 – Real Property Status Report and SF-429-A General Reporting (OMB No. 4040-0016) - These forms are filed annually based upon the end of the budget period. A separate SF-429-A must be completed for each parcel of real property reported and accompany the annual SF-429.
SF-425 – Federal Financial Quarterly & Annual Reports – These reports are filed on an annual and quarterly basis. It requires recipients to provide comprehensive information ensure compliance with budgetary terms, federal regulations, and agency guidelines.
AL #15.033
Tribal Transportation Program Report – This report is filed annually. Beginning in 2019, it replaced the annual narrative reports. It requires recipients to provide a financial report, non-construction activities report, and a project report for each project active during the reporting period.
AL #21.027
Interim Report – The Interim Report will include a recipient’s expenditures through July 31, 2021 by category and at the summary level. The reporting requirements vary by type of recipient, the total allocation amount, and the date which the recipient first received its allocation. This is a one-time report.
Project and Expenditure Report - Per the treasury, "The following recipients are required to submit annual Project and Expenditure Reports: Tribal governments that are allocated less than $30 million in SLFRF funding. For these recipients, the initial Project and Expenditure Report will cover from March 3, 2021 to March 31, 2022 and must be submitted to Treasury by April 30, 2022."
Condition/Context:
AL #93.600
The Tribe was unable to provide 4 of 4 SF-425 Quarterly reports, 2 of 2 Annual SF-425 reports, and 2 of 2 SF-429 annual reports.
AL #15.033
The Tribe was unable to provide the Tribal Transportation Program Report.
AL #21.027
The Tribe was unable to provide the Interim Report and the Project and Expenditure Report.
[X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Cause:
Due to turnover in key personnel and lack of internal controls, the Department did not have the ability to provide supporting documentation or the reports submitted.
Effect:
The Department is out of compliance with federal reporting requirements and amounts reported to federal agencies may be inaccurate.
Questioned Costs:
Due to lack of sufficient documentation, we were unable to determine questioned costs.
Repeat Finding:
Yes – 2020-008 (AL #’s 93.600 and 15.033).
Recommendation:
The Department should improve the controls over the reporting function, which includes the documentation, review, and approval of all required reports, and effective controls over the preparation of reports, as well as a monitoring function to ensure that controls are in place and operating effectively for report submission.
Views of Responsible Officials and Planned Corrective Action:
Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.