U.S. Department of Interior
Fort Peck Reservation Rural Water System – CFDA No. 15.516
2020-012 Reporting
Recommendation: CLA recommend more thorough accounting and review over 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 inaccurate.
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 the spreadsheet, financial records and reports from the accounting software such as the income statement, trial balance, cash report and monthly reconciliation reports.
Strengthened internal controls include proper monthly reconciliation process that are reviewed and approved by the general manager, quarterly payroll liability review and adjustments, monthly review and approval of Finance reports by the Board of Directors, monthly and end-of-year adjustments by the Finance Officer and review for accuracy and approval by the General Manager will ensure accurate and timely reports. The knowledge and improved understanding of the new accounting software by the current finance staff and General Manager ensures proper accrual accounting and records are maintained.
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