Finding 501739 (2020-009)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2020
Accepted
2024-10-03

AI Summary

  • Core Issue: Significant deficiency in internal controls over compliance, leading to unsupported payroll disbursements.
  • Impacted Requirements: Failure to meet 2 CFR 200.303, which mandates effective internal controls for proper use of federal funds.
  • Recommended Follow-Up: Ensure ASRWSS adheres to internal control policies to support all expenditures and prevent unallowable costs.

Finding Text

Federal Agency: U.S. Department of Reclamation Federal Program Title: Fort Peck Reservation Rural Water System ALN Number: 15.516 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: R03AV60749 March 31, 2019 R18AV00011 September 30, 2022 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not supported by an employee wage form on file. Questioned Costs: Known question costs of $581.22. 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: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. 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 Fort Peck Reservation Rural Water System – CFDA No. 15.516 2020-009 Allowable Costs/Cost Principles – Payroll Expenses Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not supported by an employee wage form on file. Action taken in response to finding: All employees have a current wage from on file. Changes to payroll are not completed until the wage form is signed by both the General Manager and Financial Officer. The wage forms for each employee are completed during orientation and with wage increases following a satisfactory work performance evaluation. The wage forms are kept with each employee’s file stored with the HR Manager. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager, Tanya Bear, Administrative Officer, and Bailey Day, Human Resources Manager/Payroll Specialist 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
  • 501737 2020-007
    Material Weakness
  • 501738 2020-008
    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