Finding 51887 (2022-001)

Section II ? Financial Statement Findings Native Village of Tazlina did not have any findings related to the financial statements. Section III ? Federal Award Findings Finding 2022-001 Lack of Internal Control Over Subrecipient Monitoring Requirements Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Indian Community Development Block Grant Program ALN Number: 14.862 Award Number: B19SR021598 Award Year: 2020 Type of Finding: Material weakness in internal control over compliance and material noncompliance. Criteria: Uniform Guidance 200.332 (d) states an entity must monitor the activities of Subrecipients as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations and terms and conditions of the subaward and performance goals are achieved. Condition and Context: The Village did not adhere to the Uniform Guidance requirement of Subrecipient monitoring. No written agreement was available for review and the Association had no policies and procedures in place to review expenditures of the subrecipient to ensure the funds were being spent appropriately. Cause: Lack of internal controls over Subrecipient monitoring. Effect: Failure to follow compliance requirements could result in the loss of federal funding. Questioned Costs: None noted. Repeat Finding: This is considered an isolated instance. Recommendation: The Village needs to have a written agreement with Subrecipients and policies and procedures in place to allow for proper review of Subrecipient transactions including support for allowable costs. Management?s Response: Management concurs with this finding. See corrective action plan.