Finding 501736 (2020-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2020
Accepted
2024-10-03

AI Summary

  • Core Issue: There is a material weakness in internal controls and noncompliance regarding financial reporting accuracy.
  • Impacted Requirements: Annual financial reports must accurately reflect the period they cover; one quarterly report was found to be inaccurate.
  • Recommended Follow-Up: Implement thorough accounting practices and conduct a detailed review of financial reports to prevent future inaccuracies.

Finding Text

2020-006 Reporting Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or Specific Requirement: Annual financial reports should accurately reflect the period covered. Condition/Context: During our audit testing, we noted that 1 of the quarterly reports SF-425 reports tested were inaccurate. Questioned Costs: Known question costs of $297,854.53. Unable to determine likely questioned costs. Cause: Proper accrual accounting and records were not maintained. Effect: Inaccurate reports. Repeat Finding: This finding was issued as prior year reference number 2019-008. Recommendation: CLA recommend more thorough accounting and review over financial reports. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.

Corrective Action Plan

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-006 Reporting Recommendation: CLA recommend more thorough accounting and review our financial reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our audit testing, we noted that 1 of the quarterly reports SF-425 reports tested were incomplete. Action taken in response to finding: In FY 2019, accounting services were provided by a company contracted for financial functions. In FY 2020 new positions were created and staff hired to perform all financial accounting in-house. Significant work has been done to provide accurate reports. Although not required, a spreadsheet was created to track cumulative revenue and expenditures with checks and balances to document the calculation of report amounts for each quarterly report. The SF-425 financial report is submitted with the spreadsheet, financial records and reports from the accounting software such as the income statement, trial balance, cash report and monthly reconciliation reports to provide documentation of the source of information used to provide the most accurate reports as possible. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, and Jodi Miller, Finance Officer Planned completion date for corrective action plan: Complete

Categories

Questioned Costs Reporting Material Weakness

Other Findings in this Audit

  • 501732 2020-002
    Significant Deficiency Repeat
  • 501733 2020-003
    Material Weakness Repeat
  • 501734 2020-004
    Significant Deficiency Repeat
  • 501735 2020-005
    Material Weakness
  • 501737 2020-007
    Material Weakness
  • 501738 2020-008
    Significant Deficiency
  • 501739 2020-009
    Significant Deficiency
  • 501740 2020-010
    Significant Deficiency Repeat
  • 501741 2020-011
    Significant Deficiency
  • 501742 2020-012
    Significant Deficiency Repeat
  • 501743 2020-013
    Significant Deficiency Repeat
  • 1078174 2020-002
    Significant Deficiency Repeat
  • 1078175 2020-003
    Material Weakness Repeat
  • 1078176 2020-004
    Significant Deficiency Repeat
  • 1078177 2020-005
    Material Weakness
  • 1078178 2020-006
    Material Weakness Repeat
  • 1078179 2020-007
    Material Weakness
  • 1078180 2020-008
    Significant Deficiency
  • 1078181 2020-009
    Significant Deficiency
  • 1078182 2020-010
    Significant Deficiency Repeat
  • 1078183 2020-011
    Significant Deficiency
  • 1078184 2020-012
    Significant Deficiency Repeat
  • 1078185 2020-013
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
15.516 Fort Peck Reservation Rural Water System $12.18M
15.048 Bureau of Indian Affairs Facilities Operations and Maintenance $3.15M