Finding 972488 (2021-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-05-07
Audit: 305670
Organization: Orutsararmiut Native Council (AK)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, specifically in the review and approval of quarterly financial reports.
  • Impacted Requirements: Reports must be reviewed and approved by management before submission, and they should match the general ledger.
  • Recommended Follow-Up: Management should strictly follow internal control procedures for grant reporting to prevent inaccuracies.

Finding Text

Federal Agencies: U.S. Department of the Treasury Federal Programs: Emergency Rental Assistance Program Assistance Listing Numbers: 21.023 Award Numbers: ERA0672 Award Years: 2021 Type of Finding: Significant deficiency in internal control over compliance. Criteria: Adequate internal control over reporting should be in place to ensure that quarterly financial reports are reviewed and approved by a member of management prior to submission. Such approval processes should be clearly documented and maintained. These reports should also be in agreement with the underlying accounting system. Condition and Context: During our testing of quarterly financial reporting, the council was unable to produce sufficient documentation to indicate that quarterly financial reports were reviewed and approved by management prior to submission. Additionally, the two quarterly reports that were reviewed did not agree to the Council’s general ledger. Cause: Lack of internal control over reporting. Effect: Lack of internal control over reporting could result in inaccurate and unauthorized reporting of program expenditures. Questioned Costs: None noted. Repeat Finding: This is not a repeat finding for the major federal program noted above, therefore, we believe this is not a systemic issue. Recommendation: We recommend that management strictly adheres to adopted internal control procedures related to grant reporting. Management’s Response: Management agrees with this finding. See Corrective Action Plan.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 396042 2021-003
    Material Weakness Repeat
  • 396043 2021-003
    Material Weakness Repeat
  • 396044 2021-003
    Material Weakness Repeat
  • 396045 2021-004
    Material Weakness
  • 396046 2021-005
    Significant Deficiency
  • 396047 2021-006
    Significant Deficiency
  • 396048 2021-003
    Material Weakness Repeat
  • 972484 2021-003
    Material Weakness Repeat
  • 972485 2021-003
    Material Weakness Repeat
  • 972486 2021-003
    Material Weakness Repeat
  • 972487 2021-004
    Material Weakness
  • 972489 2021-006
    Significant Deficiency
  • 972490 2021-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $3.80M
14.862 Indian Community Development Block Grant Program $537,082
20.205 Highway Planning and Construction $385,044
21.023 Emergency Rental Assistance Program $302,266
93.568 Low-Income Home Energy Assistance $282,144
14.867 Indian Housing Block Grants $247,993
93.047 Special Programs for the Aging_title Vi, Part A, Grants to Indian Tribes_part B, Grants to Native Hawaiians $242,084
15.022 Tribal Self-Governance $237,393
16.841 Voca Tribal Victim Services Set-Aside Program $196,932
15.636 Alaska Subsistence Management $181,366
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $128,091
16.587 Violence Against Women Discretionary Grants for Indian Tribal Governments $127,450
66.926 Indian Environmental General Assistance Program (gap) $110,071
21.027 Coronavirus State and Local Fiscal Recovery Funds $72,870
93.612 Native American Programs $65,044
12.116 Department of Defense Appropriation Act of 2003 $64,995
93.933 Demonstration Projects for Indian Health $64,089
93.054 National Family Caregiver Support, Title Vi, Part C, Grants to Indian Tribes and Native Hawaiians $49,790
45.311 Native American and Native Hawaiian Library Services $9,873