Finding 528946 (2023-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-03-19

AI Summary

  • Core Issue: There is a material weakness in internal controls regarding allowable costs for the Native American CDFI Assistance Program.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is necessary to ensure only allowable costs are charged to federal grants.
  • Recommended Follow-Up: Management should establish procedures to prevent unallowable costs from being charged to federal grants.

Finding Text

Federal Agency: U.S. Department of Treasury Federal Program Name: Native American CDFI Assistance Program Assistance Listing Number: 21.012 Federal Award Identification Number and Year: 201NA054738 – 2020 and 211NA056263 -2021 Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: September 24, 2020 through December 31, 2023 and December 8, 2021 through December 31, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance – Allowable Costs • Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of allowable costs. Condition: During our testing, we noted two unallowable expenditures charged to the grant. Questioned Costs: None Context: During our testing of allowable costs, it was noted that unallowed costs were charged to the grant. Cause: Administrative error in charging unallowable costs to federal grants. Effect: Unallowable expenses were charged to the grant. Repeat Finding: No. Recommendation: We recommend management implement procedures to ensure that unallowable costs are not charged to federal grants. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend management implement procedures to ensure that unallowable costs are not charged to federal grants. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We will provide supplementary training focused on the accurate allocation of costs to federal awards, as well as the identification and separation of unallowable costs from allowable costs. Name(s) of the contact person(s) responsible for corrective action: Jordan Ruiz, Executive Director Planned completion date for corrective action plan: March 31, 2025

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 528944 2023-002
    Material Weakness
  • 528945 2023-002
    Material Weakness
  • 528947 2023-003
    Material Weakness
  • 1105386 2023-002
    Material Weakness
  • 1105387 2023-002
    Material Weakness
  • 1105388 2023-003
    Material Weakness
  • 1105389 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.012 Native Initiatives $460,905
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $385,995
21.025 Small Dollar Loan Program $60,402