U.S. Department of Interior
Fort Peck Reservation Rural Water System – CFDA No. 15.516
2020-008 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, 1 purchase order was created after the invoice.
Action taken in response to finding: Corrective action began in May 2019 with implementation of vouchers to document authorization of purchases by the signature or initial of the general manager. Supporting documentation for all purchases is now properly recorded and filed with each expense.
Currently, purchase request forms are used rather than vouchers, but they serve the same purpose to document account coding and approval to initiate 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.
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