Finding 565710 (2022-005)

Material Weakness
Requirement
H
Questioned Costs
$1
Year
2022
Accepted
2025-06-22
Audit: 359422

AI Summary

  • Core Issue: RepMar is not following grant agreement rules regarding the period of performance, leading to uncertainty about costs charged to various programs.
  • Impacted Requirements: Compliance with grant agreements is compromised, affecting expenditures for programs under ALN 15.875 and ALN 93.323.
  • Recommended Follow-Up: RepMar should establish better internal controls to ensure all grant agreements are kept and that each grant has a unique cost center.

Finding Text

Finding No.: 2022-005 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Compact Sector Grants Questioned Costs: $ Undeterminable Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Federal Award No.: Enewetak/Ujelang Local Government (EULG) Food and Agriculture Support Program Questioned Costs: $ Undeterminable Federal Agency: U.S. Department of Health and Human Services AL Program: 93.323 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award No.: NU50CK000558 Questioned Costs: $ Undeterminable Area: Period of Performance Criteria: Grant agreements stipulate the period of performance during which time only costs resulting from obligations of the funding period may be charged. Condition 1: For $573,068 of $31,492,268 in total ALN 15.875 (Compact Sector Grants) expenditures, compliance with period of performance requirements for nine cost centers (CC #s CJ8386, CK6028, CK8113, CK8171, CL6030, CL6031, CL8126, CL8171 and CL8401) could not be ascertained due to lack of underlying grant agreements. Condition 2: For $2,126,731 of $2,199,010 in total expenditures for ALN 15.875 (EULG Food and Agriculture Support Program), such were charged to a single cost center (CM6226) that relates to two grant agreements with different periods of performance. Compliance with period of performance requirements regarding costs totaling $826,606 related to award no. D22AF00084-00 could not be ascertained. Condition 3: For $1,628,416 of $2,880,710 in total expenditures for ALN 93.323 (Epidemiology and Laboratory Capacity for Infectious Diseases), compliance with period of performance requirements for five cost centers (CC #s FK7609, FL7615, FL7616, FN7610 and FN7618) could not be ascertained due to lack of underlying grant agreements. Cause: RepMar lacks adequate internal control policies and procedures requiring retention of all grant agreements and creation of a unique cost center for each grant award. Effect: RepMar is potentially in noncompliance with applicable period of performance requirements. Questioned costs, if any, that may result from the above conditions, are not determinable. Identification as a Repeat Finding: Finding No. 2021-004 (ALN 15.875 Compact Sector Grant) Recommendation: RepMar should implement adequate internal control policies and procedures requiring retention of all grant agreements and creation of a unique cost center for each grant award. Views of Responsible Officials: We agree with the finding and provide details in our Corrective Action Plan.

Corrective Action Plan

Grant agreements are filed with the respective Budget Officers. The period of performance is entered into the FMIS (Bisan) prior to account setup, which automatically halts transactions after the grant’s closing date.

Categories

Questioned Costs Period of Performance Internal Control / Segregation of Duties

Other Findings in this Audit

  • 565703 2022-001
    Significant Deficiency Repeat
  • 565704 2022-004
    Material Weakness Repeat
  • 565705 2022-005
    Significant Deficiency Repeat
  • 565706 2022-006
    Material Weakness Repeat
  • 565707 2022-009
    Material Weakness Repeat
  • 565708 2022-010
    Significant Deficiency Repeat
  • 565709 2022-002
    Material Weakness
  • 565711 2022-007
    Material Weakness
  • 565712 2022-009
    Material Weakness
  • 565713 2022-011
    Material Weakness
  • 565714 2022-003
    Material Weakness Repeat
  • 565715 2022-005
    Material Weakness
  • 565716 2022-008
    Material Weakness Repeat
  • 565717 2022-009
    Material Weakness Repeat
  • 565718 2022-003
    Material Weakness Repeat
  • 565719 2022-005
    Material Weakness
  • 565720 2022-008
    Material Weakness Repeat
  • 565721 2022-009
    Material Weakness Repeat
  • 1142145 2022-001
    Significant Deficiency Repeat
  • 1142146 2022-004
    Material Weakness Repeat
  • 1142147 2022-005
    Significant Deficiency Repeat
  • 1142148 2022-006
    Material Weakness Repeat
  • 1142149 2022-009
    Material Weakness Repeat
  • 1142150 2022-010
    Significant Deficiency Repeat
  • 1142151 2022-002
    Material Weakness
  • 1142152 2022-005
    Material Weakness
  • 1142153 2022-007
    Material Weakness
  • 1142154 2022-009
    Material Weakness
  • 1142155 2022-011
    Material Weakness
  • 1142156 2022-003
    Material Weakness Repeat
  • 1142157 2022-005
    Material Weakness
  • 1142158 2022-008
    Material Weakness Repeat
  • 1142159 2022-009
    Material Weakness Repeat
  • 1142160 2022-003
    Material Weakness Repeat
  • 1142161 2022-005
    Material Weakness
  • 1142162 2022-008
    Material Weakness Repeat
  • 1142163 2022-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $2.57M
84.027 Special Education Grants to States $1.91M
93.268 Immunization Cooperative Agreements $1.07M
17.225 Unemployment Insurance $821,936
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $753,281
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $643,583
10.582 Fresh Fruit and Vegetable Program $584,706
11.460 Special Oceanic and Atmospheric Projects $439,312
15.904 Historic Preservation Fund Grants-in-Aid $423,284
93.069 Public Health Emergency Preparedness $407,951
15.875 Economic, Social, and Political Development of the Territories $290,106
93.945 Assistance Programs for Chronic Disease Prevention and Control $251,776
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $241,580
93.994 Maternal and Child Health Services Block Grant to the States $225,394
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $209,308
84.325P The Republic of the Marshall Islands Teacher Retention Project $209,144
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $199,155
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $175,234
93.217 Family Planning Services $83,726
93.917 Hiv Care Formula Grants $78,330
45.310 Grants to States $51,863
10.664 Cooperative Forestry Assistance $43,035
93.110 Maternal and Child Health Federal Consolidated Programs $37,826
93.991 Preventive Health and Health Services Block Grant $36,139
97.042 Emergency Management Performance Grants $23,639
93.495 Community Health Workers for Public Health Response and Resilient $9,568
93.958 Block Grants for Community Mental Health Services $3,708
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,995