Finding 513963 (2024-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2024-12-12

AI Summary

  • Core Issue: A journal entry for LIHEAP grant expenses was not approved, violating internal control requirements.
  • Impacted Requirements: Compliance with 2 CFR 200.303 for managing federal awards and ensuring proper review of costs.
  • Recommended Follow-Up: Review and retroactively approve all journal entries for federal grants; correct any errors with granting agencies.

Finding Text

Information on Federal Programs U.S. Department of Health and Human Services – Low-Income Home Energy Assistance Program (passed through the North Dakota Division of Community Services, # 4995-LIHEAP21- 30, 5138-LIHEAP-ARPA-30, and 5195-LIHEAP23-30) U.S. Department of Health and Human Services – Low-Income Home Energy Assistance Program – Emergency Furnace Repair (passed through the North Dakota Division of Community Services, Award #5131-LIHEAPEF22-30 and 5055-LIHEAPEF-ARPA-30) AL# 93.568 Criteria – Section 2 CFR sections 200.303 requires that the auditee establish and maintain internal control over federal awards to provide reasonable assurance that the auditee is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition – For the year ended June 30, 2024, we requested supporting documentation to test the review and approval of a sample of costs charged to the LIHEAP grant. In a sample of 60 expenditures, we noted one instance where a journal entry which allocated expenses to the grant was not approved. Cause – Internal controls were updated mid-year to require the review of all journal entries charged to and reimbursed under federal grants. Effect or Potential Effect – Federal expenditures may not be in accordance with the allowable cost/cost principles standards under Uniform Guidance. Questioned Costs – Undeterminable Context – The expenditure selected for testing was a journal entry allocated costs but occurred prior to the change in the internal control requiring review of all journal entries. Repeat Finding – This is a new finding. Recommendation – The auditee should review all journal entries that were charged to federal grants and approve retroactively and document in a memo. Any errors noted should be correcting with the appropriate granting agencies.

Corrective Action Plan

Contact Person – Lora Papacheck, CEO Planned Corrective Action – Entity management will retroactively review and approve all journal entries that were charged to federal grants and document in a memo. Completion Date – Fiscal year 2025

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 513960 2024-003
    Significant Deficiency Repeat
  • 513961 2024-003
    Significant Deficiency Repeat
  • 513962 2024-003
    Significant Deficiency Repeat
  • 513964 2024-004
    Significant Deficiency
  • 513965 2024-004
    Significant Deficiency
  • 1090402 2024-003
    Significant Deficiency Repeat
  • 1090403 2024-003
    Significant Deficiency Repeat
  • 1090404 2024-003
    Significant Deficiency Repeat
  • 1090405 2024-004
    Significant Deficiency
  • 1090406 2024-004
    Significant Deficiency
  • 1090407 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
81.042 Weatherization Assistance for Low-Income Persons $591,802
93.569 Community Services Block Grant $499,874
93.568 Low-Income Home Energy Assistance $426,705
14.239 Home Investment Partnerships Program $16,570
97.024 Emergency Food and Shelter National Board Program $14,054
32.011 Affordable Connectivity Outreach Grant Program $898