Finding 523284 (2023-006)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2025-02-14

Audit: 342535

Organization: Little River Band of Ottawa Indians (MI)

Auditor: Rehmann Robson LLC

AI Summary

Core Issue: There was a discrepancy between the quarterly P&E reports and the general ledger, indicating a lack of detailed tracking of project expenditures.
Impacted Requirements: The Tribe did not fully comply with CSLFRF grant reporting requirements and Uniform Guidance due to these variances.
Recommended Follow-Up: The Tribe should implement regular reconciliations between quarterly P&E reports and the general ledger to ensure accurate classification and reporting of expenditures.

Finding Text

2023-006 – Variance in Quarterly Reporting Finding Type. Immaterial Noncompliance (Reporting)/Significant Deficiency in Internal Control over Compliance. Program. Coronavirus State and Local Fiscal Recovery Funds (CSLFRF); U.S. Department of Treasury; ALN 21.027. Criteria. CSLFRF grant recipients are required to file quarterly Project and Expenditure ("P&E") reports that include period-to-date and cumulative expenditures. Condition. During our audit, we noted a variance between amounts reported on certain quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2023. Cause. This condition was caused by management not appropriately tracking project expenditures in sufficient detail on the general ledger to allow for reconciliation to the underlying accounting records and each quarterly P&E report. Effect. As a result of this condition, the Tribe did not fully comply with the requirements of the grant award or the Uniform Guidance. Questioned Costs. No costs have been questioned as a result of this finding, inasmuch as the reporting was deemed to be inaccurate, not the financial records. Recommendation. We recommend that the Tribe reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. View of Responsible Officials. Management concurs with this finding. The identified variances have been corrected in subsequent reporting periods during both 2023 and 2024.

Corrective Action Plan

Auditor Description of Condition and Effect: During our audit, we noted a variance between amounts reported on certain quarterly P&E reports and amounts recorded in the general ledger and presented on the schedule of expenditures of federal awards (SEFA) for fiscal year 2023. As a result of this condition, the Tribe did not fully comply with the requirements of the grant award or the Uniform Guidance. Auditor Recommendation: We recommend that the Tribe reconcile quarterly P&E reporting with amounts in the general ledger to ensure that all expenditures reported are classified in the correct project category on the P&E reporting and in the correct reporting period. Corrective Action: Due to corrections of current or prior year postings of expenses, there were variances between our general ledger expenses and the expenses reported in quarterly reports in 2023. These variances were corrected either in 2023 or 2024 reporting. The quarterly report for 12/31/2024 balanced to the general ledger, so all variances have been corrected. Responsible Person: Angela L. Rabb, Chief Financial Officer Anticipated Completion Date: 01/01/2025

Other Findings in this Audit

1099726 2023-006

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.210	Tribal Self-Governance Program: Ihs Compacts/funding Agreements	$2.93M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$2.88M
15.022	Tribal Self-Governance	$2.36M
20.205	Highway Planning and Construction	$502,640
66.605	Performance Partnership Grants	$235,278
15.141	Indian Housing Assistance	$150,811
93.445	Indian Health Service Sanitation Facilities Construction Program	$127,800
21.026	Homeowner Assistance Fund	$91,674
16.587	Violence Against Women Discretionary Grants for Indian Tribal Governments	$82,959
66.038	Training, Investigations, and Special Purpose Activities of Federally-Recognized Indian Tribes Consistent with the Clean Air Act (caa), Tribal Sovereignty and the Protection and Management of Air Quality	$59,950
14.867	Indian Housing Block Grants	$45,721
93.047	Special Programs for the Aging, Title Vi, Part A, Grants to Indian Tribes, Part B, Grants to Native Hawaiians	$42,957
21.032	Local Assistance and Tribal Consistency Fund	$38,211
66.034	Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act	$33,500
15.148	Tribal Energy Development Capacity Grants	$33,140
93.671	Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services	$32,364
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$31,855
16.575	Crime Victim Assistance	$27,116
10.567	Food Distribution Program on Indian Reservations	$21,600
93.958	Block Grants for Community Mental Health Services	$19,125
93.445	Marylee Allen Promoting Safe and Stable Families Program	$12,007
10.914	Wildlife Habitat Incentive Program	$7,918
10.594	Food Distribution Program on Indian Reservations Nutrition Education Grants	$7,039
93.053	Nutrition Services Incentive Program	$5,105
93.499	Low Income Household Water Assistance Program	$5,000
16.025	Special Domestic Violence Criminal Jurisdiction Implementation	$4,547
93.645	Stephanie Tubbs Jones Child Welfare Services Program	$4,457
93.568	Low-Income Home Energy Assistance	$2,869
93.556	Marylee Allen Promoting Safe and Stable Families Program	$1,172
93.600	Head Start	$1,162
93.441	Indian Self-Determination	$-35,612