FAC Explorer

Finding 59616 (2022-002)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2022-12-28
Audit: 55098
Organization: Fairbanks Native Association (AK)
Auditor: Altman Rogers & CO

AI Summary

  • Core Issue: There is a significant lack of internal controls over credit card transactions, leading to unapproved charges across multiple federal programs.
  • Impacted Requirements: Compliance with internal policies for credit card approvals is not being met, increasing the risk of unauthorized purchases.
  • Recommended Follow-Up: Develop and enforce a comprehensive credit card policy to ensure proper approval processes and accountability for all card users.

Finding Text

Finding 2022-002 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Federal Agency: U.S. Department of the Treasury (direct and passed Doyon, Limited), U.S. Department of Justice (direct), and U.S. Department of Education (direct), respectively Federal Program: Coronavirus Relief Fund (CARES), VOCA Tribal Victim Services Set-Aside Program, and Native American Career and Technical Education (NACTEP), respectively Assistance Listing Number: 21.019, 16.841, and 84.101A respectively Award Number: FAN84197 and FNACRF-03-005 (CARES), 2019-VO-GX-0023 and 2018-VO-GX-0031 (Tribal Victim Services), and V101A180011-20 (NACTEP) Award Years: 2022 (CARES), 2019 (Tribal Victim Services), and 2018 (NACTEP), respectively. Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Proper internal controls over credit cards and policies and procedures are not properly in place for the approval of credit card transactions. Condition and Context: During our testing of credit card transactions we noted several credit card transactions charged to the three individual programs listed above, we noted 34 of the 75 tested which lacked proper approval of the transactions due to the lack of policies and procedures adopted for credit card transactions. Therefore, approval of these transactions by management could not be substantiated. Cause: Lack of internal control over credit card transactions charged to the major programs. Effect: Lack of internal control over credit card transactions such proper approval can cause potential fraudulent or unauthorized purchases can be made and applied to programs. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding, however due to the number of transactions identified, we believe this to be a systemic issue. Recommendation: We recommend that an adequate credit card policy should be created and adhered to and users of the cards should be held accountable for following the proper procedures to utilize the cards. Internal controls should be implemented to ensure the Organization?s credit card policy is adhered to. Managements Response: Management agrees with this finding. See Corrective Action Plan.

Corrective Action Plan

Finding 2022-002 Lack of Internal Control over Activities Allowed or Unallowed and Allowable Costs/Cost Principles Name of Contact Person: Duane Hoskins, Director of Finance Corrective Action Plan: In order to improve internal control over expenditures made by credit cards, while still maintaining a convenient and efficient system for small dollar and online purchases, Fairbanks Native Association adopted a Purchase Card system in June of 2022. A Purchase Card policy which will be put in place which will require supporting purchase documentation and Program Director approval. Proposed Completion Date: December 31, 2022

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Significant Deficiency

Other Findings in this Audit

  • 59617 2022-002
    Significant Deficiency
  • 59618 2022-002
    Significant Deficiency
  • 59619 2022-002
    Significant Deficiency
  • 636058 2022-002
    Significant Deficiency
  • 636059 2022-002
    Significant Deficiency
  • 636060 2022-002
    Significant Deficiency
  • 636061 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $2.22M
21.019 Coronavirus Relief Fund $1.08M
93.498 Provider Relief Fund $908,860
93.959 Block Grants for Prevention and Treatment of Substance Abuse $806,647
84.101 Career and Technical Education - Grants to Native Americans and Alaska Natives $718,503
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $683,679
84.299 Indian Education -- Special Programs for Indian Children $664,781
93.441 Indian Self-Determination $602,148
93.933 Demonstration Projects for Indian Health $488,393
93.872 Tribal Maternal, Infant, and Early Childhood Home Visiting $437,197
15.130 Indian Education_assistance to Schools $277,688
93.623 Basic Center Grant $252,969
21.027 Coronavirus State and Local Fiscal Recovery Funds $250,000
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $235,163
84.365 English Language Acquisition State Grants $219,828
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $204,710
93.788 Opioid Str $194,845
16.841 Voca Tribal Victim Services Set-Aside Program $168,530
93.210 Tribal Self-Governance Program: Ihs Compacts/funding Agreements $125,116
84.356 Alaska Native Educational Programs $118,214
93.054 National Family Caregiver Support, Title Vi, Part C, Grants to Indian Tribes and Native Hawaiians $80,852
16.731 Tribal Youth Program $72,307
10.558 Child and Adult Care Food Program $67,627
93.569 Community Services Block Grant $54,170
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $52,055
93.600 Head Start $43,092
93.653 Indian Health Service Domestic Violence Prevention Programs $23,696
16.582 Crime Victim Assistance/discretionary Grants $20,629
93.053 Nutrition Services Incentive Program $16,768
45.311 Native American and Native Hawaiian Library Services $9,270
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $1,412
90.100 Denali Commission Program $1,170