Finding 501737 (2020-007)

Material Weakness
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, with actual expenditures exceeding budgeted amounts.
  • Impacted Requirements: Annual financial reports must accurately reflect the covered period, and proper documentation must be maintained.
  • Recommended Follow-Up: Ensure consistent adherence to ASRWSS policies and maintain necessary supporting documentation to prevent unallowable costs.

Finding Text

2020-007 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: Actual expenditures exceed budgeted amounts for multiple cost items. Questioned Costs: Known question costs of $94,693.25. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommend that ASRWSS policies and procedures are followed consistently. We also recommend that supporting documentation is maintained and properly documented. 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 2020-007 Reporting Recommendation: CLA recommend that ASRWSS policies & procedures are followed consistently. We also recommend that supporting documentation is maintained and properly documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: Actual expenditures exceed budgeted amount for multiple cost items. Action taken in response to finding: During FY 2019 the organization began to expand and increase staff, which increased the operational costs that were exceeded. With the currently established organization, budgets are better developed based on actual costs from the previous year rather than estimated costs. If necessary expenditures exceed the budgeted line items, procedures have been developed to adjust the budget with the in-house financial staff in a timely manner. The General Manager prepares the budget adjustments using a spreadsheet that is documented with an approved signature, and the Finance Officer reviews and records the adjustments into the accounting software. 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 Allowable Costs / Cost Principles

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
  • 501736 2020-006
    Material Weakness Repeat
  • 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