Finding Text
Federal Agency: US Department of the Interior
Federal Program: BIA Compact
Assistance Listing Number: 15.022
Award Number: GT-OSGT043-16
Award Year: 2021
Type of Finding: Material weakness in internal control over compliance and material noncompliance.
Criteria: Funds received in advance are required to be (1) invested only in obligations of the United States or in obligations or securities that are guaranteed or insured by the United States, or mutual (or other) funds registered with the Securities and Exchange Commission and which only invest in obligations of the United States or securities that are guaranteed or insured by the United States; or (2) deposited only in accounts that are insured by an agency or instrumentality of the United States, or are fully collateralized to ensure protection of the advance funds, even in the event of bank failure.
Condition and Context: During our testing of special tests and provisions, management was unable to provide sufficient documentation to indicate that advance funds were being held in allowable investment securities or within fully insured and/or collateralized bank accounts.
Cause: Lack of internal control over compliance and material noncompliance with the special tests and provisions requirement of the program.
Effect: The lack of internal control over advance funds resulted in material noncompliance with the special tests and provisions requirements of the program.
Questioned Costs: None noted.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Council adheres to its internal control policies to ensure compliance requirements are met.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.