FAC Explorer

Finding 574597 (2020-008)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2020
Accepted
2025-08-25
Audit: 364856
Organization: Minnesota Chippewa Tribe (MN)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, specifically in the reporting function for Tribal Work Grants.
  • Impacted Requirements: Reports were not properly reviewed, leading to two SF-425 reports being submitted late and potential inaccuracies in all required reports.
  • Recommended Follow-Up: Management should establish procedures for timely review and documentation of reports, ensuring separation of duties in the reporting process.

Finding Text

Reporting Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Federal Agency: U.S. Department of Health and Human Services CFDA Number: 93.594 Program Name: Tribal Work Grants Criteria A good system of internal accounting control contemplates an adequate system for ensuring that all reports are completed and submitted accurately. Condition During the course of our engagement, we noted that the controls surrounding the reporting function of these programs were not being properly segregated. There was no review being performed to ensure that all required reports were submitted accurately. We also noted two SF- 425 reports were not submitted prior to the deadline. Cause The Tribe does not have an internal control system designed to ensure all reports are submitted timely and are reviewed by an individual separate from the person preparing the reports. Effect The control deficiency could result in the Tribe’s reports within these programs not being completed accurately or filed on time. Questioned Costs None reported. Context There were four (4) quarterly reports required to be filed during the year. All four (4) of these were tested and were found to have segregation of duties issues. In addition, two (2) of these were found to have been submitted after the deadline. Recommendation Management should put procedures in place to ensure that all reports are reviewed and documented as well as filed timely. Repeat Finding This is a repeat finding of 2019-008. Management's Response The Tribe will work on procedures to ensure that all reports are reviewed by an individual separate from the person preparing the report and filed timely.

Corrective Action Plan

Contact Person Luke Warnsholz, Executive Director Planned Corrective Action The Tribe will review current internal controls regarding the preparation and submittal of financial reports to the U.S. Department of Health and Human Services for the Tribal Work Grants. However, the financial worker at the Tribe that prepares and submits the reports currently receives e-mail notifications from the DHHS, that each report has been reviewed and approved by the DHHS. If a better system of internal accounting control includes a separate financial worker at the Tribe preparing the report, and another financial worker submitting the report via online, this action will be implemented. Planned Completion Date The Tribe will set up proper segregation of financial reporting duties during fiscal year 2025, for the Tribal Work Grants. This will include separating the duties of the person preparing the financial reports, and the person submitting the reports online.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 574598 2020-008
    Material Weakness Repeat
  • 574599 2020-009
    Material Weakness Repeat
  • 574600 2020-009
    Material Weakness Repeat
  • 574601 2020-009
    Material Weakness Repeat
  • 574602 2020-009
    Material Weakness Repeat
  • 574603 2020-009
    Material Weakness Repeat
  • 1151039 2020-008
    Material Weakness Repeat
  • 1151040 2020-008
    Material Weakness Repeat
  • 1151041 2020-009
    Material Weakness Repeat
  • 1151042 2020-009
    Material Weakness Repeat
  • 1151043 2020-009
    Material Weakness Repeat
  • 1151044 2020-009
    Material Weakness Repeat
  • 1151045 2020-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $525,834
15.130 Indian Education Assistance to Schools $454,078
15.048 Bureau of Indian Affairs Facilities Operations and Maintenance $387,445
93.558 Temporary Assistance for Needy Families $320,321
15.022 Tribal Self-Governance $191,384
66.469 Geographic Programs - Great Lakes Restoration Initiative $89,013
93.594 Tribal Work Grants $79,348
93.052 National Family Caregiver Support, Title Iii, Part E $51,000
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $50,732
15.036 Indian Rights Protection $42,295
93.734 Empowering Older Adults and Adults with Disabilities Through Chronic Disease Self-Management Education Programs – Financed by Prevention and Public Health Funds (pphf) $11,455
17.235 Senior Community Service Employment Program $6,995
93.958 Block Grants for Community Mental Health Services $6,718
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $1,513