Finding 569696 (2024-002)

Material Weakness Repeat Finding
Requirement
ABH
Questioned Costs
-
Year
2024
Accepted
2025-06-30

AI Summary

  • Core Issue: The Coalition lacks effective internal controls over compliance, leading to disbursements being processed without proper approvals.
  • Impacted Requirements: This finding violates Uniform Guidance 2 CFR, Part §200.313(a), which mandates proper internal controls for managing Federal awards.
  • Recommended Follow-Up: The Coalition should establish clear control policies, train staff on these procedures, and ensure no payments are made without necessary approvals.

Finding Text

Finding 2024-002 – Activities Allowed/Unallowed, Costs Principles, and Period of Performance (Internal Controls Over Compliance) (Repeat Finding 2023-001) Material Weakness Criteria: Uniform Guidance 2 CFR, Part §200.313(a) requires that non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: During our review of the Coalition’s disbursements related to the Title V major program, we examined 68 transactions for internal controls over compliance. 7 of the 68 transactions examined did not contain sufficient evidence that a review and approval process was completed prior to payment being processed. Questioned Costs: None Cause: The Coalition does not have sufficiently established control policies and procedures to ensure proper approvals are obtained prior to the disbursement transactions being processed. Effect: Disbursements are being processed without proper approval, resulting in the possibility of disallowed expenditures. Recommendation: We recommend the Coalition becomes familiar with requirements of 2 CFR, Part §200.313(a) and establishes appropriate internal control policies and procedures and that all staff be trained on those policies and procedures, so they are familiar with the requirements. We further recommend the Coalition does not process payment for disbursements that do not contain necessary approvals. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.

Corrective Action Plan

Finding 2024-002 – Activities Allowed/Unallowed, Costs Principles and Period of Performance (Internal Controls Over Compliance) (Repeat Finding 2023-001) Condition: During our review of the Coalition’s disbursements related to the Title V major program, we examined 68 transactions for internal controls over compliance. 7 of the 68 transactions examined did not contain sufficient evidence that a review and approval process was completed prior to payment being processed. Corrective Action Plan: In response to the finding regarding insufficient internal controls over compliance for disbursements related to the Title V major program, the Nebraska Urban Indian Health Coalition (NUIHC) has previously taken several corrective actions to strengthen compliance, including: 1. Review and Revision of Policies and Procedures: NUIHC conducted a comprehensive review of internal control policies and procedures related to disbursements. Updates were made to ensure alignment with 2 CFR §200.313(a), and clear guidelines for review and approval processes were established. 2. Staff Training and Education: Training was provided to procurement and finance staff to ensure understanding of the revised procedures and federal compliance requirements, emphasizing the importance of proper approvals prior to disbursement. 3. Implementation of Standardized Approval Controls: A formal approval process and checklist system were implemented to ensure all disbursements are reviewed and approved by designated authorities before payment, with documentation retained for compliance. 4. Ongoing Monitoring and Internal Reviews: NUIHC began conducting quarterly internal compliance checks to verify adherence to updated procedures. Update and Continuation Plan: While these corrective actions were successfully implemented, the retirement of the former CEO temporarily stalled consistent oversight and reinforcement of these procedures. With new leadership in place, NUIHC is recommitting to the continued execution and monitoring of these corrective actions. Refresher training will be incorporated into ongoing professional development and onboarding for new staff, and quarterly internal audits will resume as scheduled. Timeline for Implementation: Corrective actions were initially implemented in 2024, and reinforcement activities—including staff refreshers and compliance monitoring—will continue a rolling basis starting July 2025. Responsible Party: Chief Financial Officer, Carlett Gregory Anticipated Completion Date: Ongoing; reinforcement begins July 2025

Categories

Material Weakness Period of Performance Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 569697 2024-002
    Material Weakness Repeat
  • 569698 2024-003
    Significant Deficiency Repeat
  • 569699 2024-003
    Significant Deficiency Repeat
  • 569700 2024-004
    - Repeat
  • 569701 2024-004
    - Repeat
  • 569702 2024-005
    - Repeat
  • 569703 2024-005
    - Repeat
  • 1146138 2024-002
    Material Weakness Repeat
  • 1146139 2024-002
    Material Weakness Repeat
  • 1146140 2024-003
    Significant Deficiency Repeat
  • 1146141 2024-003
    Significant Deficiency Repeat
  • 1146142 2024-004
    - Repeat
  • 1146143 2024-004
    - Repeat
  • 1146144 2024-005
    - Repeat
  • 1146145 2024-005
    - Repeat

Programs in Audit

ALN Program Name Expenditures
93.U01 Title V, Urban Health Services $922,971
93.237 Special Diabetes Program for Indians Diabetes Prevention and Treatment Projects $302,599
93.193 Urban Indian Health Services $218,563
16.841 Voca Tribal Victim Services Set-Aside Program $136,178
93.800 Organized Approaches to Increase Colorectal Cancer Screening $82,270
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $28,730
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $19,679