Finding Text
Finding 2024-010 – Lack of County-Wide Internal Controls Over Major Federal Program – Highway
Planning and Construction Cluster (Federal-Aid Highway Program)
PASS-THROUGH GRANTOR: Bureau of Indian Affairs FEDERAL AGENCY: U.S. Department of Transportation
ASSISTANCE LISTING: 20.205
FEDERAL PROGRAM NAME: Highway Planning and Construction Cluster (Federal-Aid Highway Program)
FEDERAL AWARD YEAR: 2019
CONTROL CATEGORY: Activities Allowed or Unallowed; Allowable Costs/Cost Principles; Matching;
Procurement and Suspension and Debarment; Special Tests and Provisions
QUESTIONED COSTS: $-0-
Condition: County-wide internal controls regarding Control Environment, Risk Assessment,
Information and Communication, and Monitoring have not been designed.
Cause of Condition: Policies and procedures have not been designed and implemented to ensure the
County complies with grant requirements.
Effect of Condition: This condition could result in noncompliance with grant requirements and could
result in loss of federal funds to the County.
Recommendation: OSAI recommends the County implement a system of internal controls to ensure
compliance with grant requirements.
Management Response:
Chairman of the Board of County Commissioners: We will work to implement a Risk Assessment plan
over federal grants. We will implement controls to make sure we comply with grant requirements and
that federal funds are expended in accordance with grant agreements and in a timely manner. We will
ensure employees have the current and correct compliance supplement to work from.
Criteria: The GAO Standards – Section 1 – Fundamental Concepts of Internal Control – OV1.01 states
in part:
Definition of Internal Control
Internal control is a process effected by an entity’s oversight body, management, and other
personnel that provides reasonable assurance that the objectives of an entity will be achieved.
Additionally, GAO Standards – Section 2 – Establishing an Effective Internal Control System –
OV2.04 states in part:
Components, Principles, and Attributes
Control Environment - The foundation for an internal control system. It provides the discipline and
structure to help an entity achieve its objectives.
Risk Assessment - Assesses the risks facing the entity as it seeks to achieve its objectives. This
assessment provides the basis for developing appropriate risk responses.
Information and Communication - The quality information management and personnel communicate and
use to support the internal control system.
Monitoring - Activities management establishes and operates to assess the quality of
performance over time and promptly resolve the findings of audits and other reviews.