FAC Explorer

Finding 485804 (2023-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-09-05
Audit: 318611
Organization: Houlton Band of Maliseet Indians (ME)
Auditor: Rhr Smith & Company

AI Summary

  • Core Issue: The Band's process for documenting disbursement approvals is ineffective, leading to potential compliance risks.
  • Impacted Requirements: Internal controls under Title 2 CFR 200.303 are not adequately established, risking unallowable costs.
  • Recommended Follow-Up: Implement stronger internal control processes to ensure compliance with federal regulations and proper documentation of expenditures.

Finding Text

2023-002 – Allowable Activities/Allowable Costs Federal Program Information: Department of Interior: CFDA - 93.600 - Head Start Cluster Criteria: Title 2 CFR 200.303 requires effective internal controls over Federal Award provide a reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal Statutes, regulations, terms and conditions of the award. Condition: During the audit procedures it was identified that the Band’s process to document approval over disbursements is not working effectively. Cause: Band does not have the necessary internal controls over compliance. Effect: Insufficient Controls could allow for unallowable costs to be charged. Identification of Questioned Costs: None identified. Context: There were 101 cash disbursements and 25 were tested and it was found that 5 of the disbursements tested had receipts/invoices that were not legible or provided documentation that was not an invoice these 5 also did not include descriptions of what was purchased. The same 5 disbursements included payment of sales tax that was charged to the grant. This is not statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Band implements internal control processes and procedures to ensure that they are following the criteria above. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Houlton Band of Maliseet Indians.

Corrective Action Plan

CORRECTIVE ACTION PLAN (Concerning Finding 2023-002) Contact Person Responsible for Corrective Action: Bruce Haggerty, Fiscal Officer Corrective Action: The Houlton Band of Maliseet Indians will take the following actions to address Finding 2023- 002: The Finance Department shared the audit findings concerning lack of adequate documentation with requests for payment and also the fact that sales tax was sometimes being charged to the grant with the Tribal Administrator and Tribal Chief. The Tribal Administrator will convey the findings to all department heads at the next Directors Meeting. It will be required that supervisors and department heads need receipts and documentation that shows a clear description, quantity and amount and that late fees are not acceptable. Also sales tax exemption certificates need to be used whenever possible. Anticipated Completion Date: (9/4/2024 date of Director’s Meeting)

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 485796 2023-001
    Significant Deficiency
  • 485797 2023-001
    Significant Deficiency
  • 485798 2023-001
    Significant Deficiency
  • 485799 2023-001
    Significant Deficiency
  • 485800 2023-001
    Significant Deficiency
  • 485801 2023-001
    Significant Deficiency
  • 485802 2023-001
    Significant Deficiency
  • 485803 2023-001
    Significant Deficiency
  • 485805 2023-002
    Significant Deficiency
  • 485806 2023-002
    Significant Deficiency
  • 1062238 2023-001
    Significant Deficiency
  • 1062239 2023-001
    Significant Deficiency
  • 1062240 2023-001
    Significant Deficiency
  • 1062241 2023-001
    Significant Deficiency
  • 1062242 2023-001
    Significant Deficiency
  • 1062243 2023-001
    Significant Deficiency
  • 1062244 2023-001
    Significant Deficiency
  • 1062245 2023-001
    Significant Deficiency
  • 1062246 2023-002
    Significant Deficiency
  • 1062247 2023-002
    Significant Deficiency
  • 1062248 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.71M
14.862 Indian Community Development Block Grant Program $841,600
15.024 Indian Self-Determination Contract Support $535,725
93.U01 Standby Power and Asset Management $442,459
84.250 American Indian Vocational Rehabilitation Services $400,425
93.654 Indian Health Service Behavioral Health Programs $318,896
15.021 Consolidated Tribal Government Program $318,540
66.605 Performance Partnership Grants $253,556
20.933 National Infrastructure Investments $213,958
21.032 Local Assistance and Tribal Consistency Fund $161,551
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $161,121
15.037 Water Resources on Indian Lands $136,554
15.639 Tribal Wildlife Grants Program $88,215
15.904 Historic Preservation Fund Grants-in-Aid $69,334
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $47,726
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $46,373
93.587 Promote the Survival and Continuing Vitality of Native American Languages $36,327
20.509 Formula Grants for Rural Areas and Tribal Transit Program $24,065
15.141 Indian Housing Assistance $21,836
10.558 Child and Adult Care Food Program $15,059
16.726 Juvenile Mentoring Program $12,329
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $11,792
93.600 Head Start $11,547
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $9,494
20.205 Highway Planning and Construction $9,438
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $7,897
16.841 Voca Tribal Victim Services Set-Aside Program $7,763
93.645 Stephanie Tubbs Jones Child Welfare Services Program $7,385
17.265 Native American Employment and Training $6,879
15.033 Road Maintenance_indian Roads $6,707
93.575 Child Care and Development Block Grant $6,326
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $3,749
15.025 Services to Indian Children, Elderly and Families $1,770
93.556 Promoting Safe and Stable Families $1,526
15.158 Doi National Fire Plan $1,386
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $641
93.228 Indian Health Service_health Management Development Program $382
93.441 Indian Self-Determination $274
15.041 Environmental Management_indian Programs $221
66.436 Surveys, Studies, Investigations, Demonstrations, and Training Grants and Cooperative Agreements - Section 104(b)(3) of the Clean Water Act $209
93.568 Low-Income Home Energy Assistance $83
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $10