Finding Text
Finding 2022-004 Activities allowed and unallowed / allowable costs ? Significant Deficiency in Internal Control Over Compliance Identification of the federal program ALN 93.210 Tribal Self Governance Program - IHS Compact/Funding Agreements. Award No. 58G950015-21. Criteria or specific requirement Management is responsible to provide reasonable assurance that the costs using federal funds are allowable and in accordance with the types of activities allowed per the compliance supplement. Condition Internal control procedures failed to catch lack of proper support for amounts reported as expenditure for the program based on allocation of amounts in invoices. Cause The finance department experienced heavy turnover during 2022 that resulted in several positions being vacant for most of the year. These staffing shortages resulted in a lack of time for sufficient review. Effect or potential effect The Organization might have been reimbursed for the costs that haven?t been incurred to support grant activities. Questioned Costs $449 Context During our testwork over non-payroll costs charged to the program, we noted 2 out of 40 items selected for testwork that did not have proper supporting documentation. Identification as a repeat finding None. Recommendation Management should review existing processes and controls over review of expenditures and add monitoring procedures to ensure management policies are followed at the Organization. Views of Responsible Official and Planned Corrective Action Management agrees with this finding. Management has hired additional staffs and filled vacancies to ensure internal control procedures for timely review of expenditures.