Finding 393274 (2022-004)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2024-04-15

Audit: 303558

Organization: Ecostudies Institute (WA)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: There is a significant deficiency in internal controls, as 2 out of 3 performance reports were submitted late, violating the award agreement.
Impacted Requirements: The award requires quarterly reports to be submitted within 30 days after each reporting period, which was not met.
Recommended Follow-Up: Implement stronger controls for timely report submissions and maintain a monthly checklist for reconciliations and reports; additional administrative support has been hired to address this issue.

Finding Text

Type of Finding: Significant Deficiency in Internal Control over Compliance and Compliance Federal Agency: U.S. Department of Defense Federal Program Name: Natural Resource Survey and Habitat Enhancement Assistance Listing Number: 12.005 Federal Award Identification Number and Year: H79TI083313 - 2020 Pass-Through Agency: U.S. Army Corps of Engineers, Seattle District Pass-Through Number(s): W912DW-20-2-0003 Award Period: September 28, 2020, through September 27, 2025 Criteria or specific requirement: Per the award agreement for contract W912DW-20-2-0003, "Recipient shall submit to the Agreement Administrator (see paragraph 1.2.1) progress reports on a quarterly basis utilizing the form included in Attachment B of this agreement. Reports are due no later than 30 days following the end of each reporting period. A final performance progress report shall be submitted within 90 days after the expiration date of the award." Condition: During our testing, it was noted that 2 of the 3 performance reports tested were filed after the filing deadline. Questioned costs: None. Context: A sample of 5 reports were taking from the population of 8 required report forms. Of the 5 sampled, 2 were not filed timely. Cause: Late filing is due to a lack of administrative staff and consistent payroll issues, which made submitting the quarterly reports with the financial reports unable to be performed on time. Effect: The untimely filing of reports can present risks, such as outdated and unreliable information or the inability to detect potential fraud or irregularities. In addition, delayed reports can impede regulatory authorities' ability to monitor compliance, detect patterns or trends, and assess risks in a timely manner. Repeat Finding: No. Recommendation: CLA recommends for the Organization to place emphasis on stronger controls around the timely filing of required reports, such as retaining a monthly checklist of required reconciliations and reports. The Organization has also taken steps to increase administrative support by hiring two individuals into the financial team. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Significant Deficiency in Internal Control over Compliance and Compliance Recommendation: CLA recommends for The Organization to place emphasis on stronger controls around the timely filing of required reports, such as retaining a monthly checklist of required reconciliations and reports. The Organization has also taken steps to increase administrative support by hiring two individuals into the financial team. There is no disagreement with the audit finding. Action taken in response to finding: We have increased our emphasis and training for all program management staff involved with reporting to ensure proper controls around the timely filing of required reports. This includes creating monthly checklists of required reports and reconciliations. We also intend to increase the size of the financial support staff. Name(s) of the contact person(s) responsible for corrective action: Gary Slater Planned completion date for corrective action plan: 4/1/2024

Other Findings in this Audit

393272 2022-002

Material Weakness
393273 2022-003

Significant Deficiency
393275 2022-005

Significant Deficiency
969714 2022-002

Material Weakness
969715 2022-003

Significant Deficiency
969716 2022-004

Significant Deficiency
969717 2022-005

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
12.005	Conservation and Rehabilitation of Natural Resources on Military Installations (b)	$1.49M
12.017	Readiness and Environmental Protection Integration (repi) Program	$30,500
10.215	Sustainable Agriculture Research and Education	$26,146
15.631	Partners for Fish and Wildlife	$19,744
10.329	Crop Protection and Pest Management Competitive Grants Program	$15,557
12.630	Basic, Applied, and Advanced Research in Science and Engineering	$9,437
10.723	G2219_us Forest Service	$7,359
15.U00	G2119_national Park Services	$5,174
15.657	Endangered Species Conservation Ð Recovery Implementation Funds	$1,475
10.931	Agricultural Conservation Easement Program	$1,251
15.U01	G2125_national Parks Service	$218