U.S. Department of the Interior
Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048
2020-002 Allowable Costs/Costs Principles – Nonpayroll Expenses
Recommendation: CLA recommend that ASRWSS policies and procedures be followed consistently. We also recommend that supporting documentation be maintained and properly documented.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Management agrees with this recommendation.
Condition: During our testing of expenditures, it was noted that of the 60 samples tested, 2 pay applications or invoices were not adequately supported or authorized.
Action taken in response to finding: Corrective action began in May 2019 with implementation of vouchers to document authorization of purchases with the signature or initial of the general manager. Supporting documentation for all purchases are recorded and filed with each expense.
New procedures were implemented during the last quarter of Fiscal Year 2020. Vouchers were replaced with purchase request forms. The purchase request forms serve the same objective as vouchers to document account coding and approval of purchase. The signed purchase request form then initiates the process to enter requisitions. Requisitions are entered by administrative staff, either the Administrative Officer or Secretary. Management reviews and will correct any errors in account coding before approval of requisitions in the accounting software. After requisitions are approved, they are made into purchase orders that encumbrance the accounts.
Prior to payment, the Financial Officer reviews documentation of expenses for the approvals, allowable costs, correct coding, approved budgets. The Financial Officer then provides the General Manager with a Claims Report for final review and approval before posting expenses and making payments. The approval of the Claims Report is documented by the signature of the general manger on the report.
This process provides internal controls that ensure pay applications and invoices will provide documentation of support and authorization.
Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager; Jodi Miller, Finance Officer; and Tanya Bear, Administrative Officer
Planned completion date for corrective action plan: Completed