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.