Finding 500930 (2023-002)

Finding 2023‐002: Information on the Federal Program: Assistance Listing Number 81.086— Upper Midwest Inter‐Tribal EV Charging Community Network. Compliance Requirement: Matching Type of Finding: Significant deficiency in internal control over compliance. Criteria: 2 CFR 200.303 of Subpart D, "Post Federal Award Requirements Standards for Financial and Program Management," of the Uniform Guidance requires a nonfederal entity to establish and maintain effective internal control over the federal award that provides reasonable assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award, including Cost Match principles. Condition: Controls were not implemented to monitor cost match partners’ activities to ensure their expenditures comply with allowable cost activities. Causes: For one of three cost matching amounts recorded in 2023, detail of amounts reported as cost match was not available upon request by auditors, and therefore the detail had not been obtained by the Organization. Effect or Potential Effect: Unallowable costs or activities could be counted for cost match by match partners causing Native Sun to fall short of cost match requirements. Questioned Costs: None Context: The Organization did not initially have documentation with sufficient detail for $756,108 of expenses reported by a cost match partner during 2023. Repeat Finding: No Recommendation: We recommend a control be implemented to monitor cost match partners including obtaining, reviewing and retaining support for reported cost match amounts. Views of Responsible Officials: Agree.