Finding 976305 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-03
Audit: 307969
Organization: Guam Power Authority (GU)

AI Summary

  • Core Issue: Two out of five SF-425 reports were not submitted on time, and three reports had discrepancies between reported amounts and accounting records.
  • Impacted Requirements: Noncompliance with federal reporting requirements, specifically the accuracy and timeliness of the SF-425 Federal Financial Report.
  • Recommended Follow-Up: Implement stronger monitoring controls and ensure thorough reviews of reported amounts by program and finance personnel before submission.

Finding Text

Finding No.: 2023-001 Federal Agency: U.S. Department of the Interior AL Program: 15.875 Economic, Social, and Political Development of the Territories Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, an SF-425 Federal Financial Report must be submitted semi-annually, and reported amounts should be accurate. Condition: 1. For two (or 40%) of five reports tested, we noted no submission of SF-425 reports for the semi-annual reporting period ended 12/31/2022 for Grant No. D19AP00168 and 06/30/2023 for Grant No. D19AP00170. 2. For three (or 60%) of five reports tested, reported amounts differ from underlying accounting records (GL) for semi-annual reporting periods, as follows: "See Schedule of Findings and Questioned Costs for chart/table" Cause: GPA did not enforce monitoring controls over compliance with applicable reporting requirements. Effect: GPA is in noncompliance with applicable reporting requirements. No questioned costs are reported because the inaccuracies did not impact Federal draws. Identification as a Repeat Finding: 2022-001 Recommendation: GPA should enforce monitoring controls over compliance with applicable reporting requirements. Responsible program personnel and finance personnel should review reported amounts for accuracy prior to submission. Views of responsible officials: GPA personnel responsible for managing federal grant programs and reporting to the grantor agencies will be trained on the preparation of standard forms required for each grant. Personnel will also be notified and encouraged to attend grants management trainings. The Finance Division has started to provide monthly expense reports to personnel on their respective grants. An additional layer of review by the Controller, Assistant Chief Financial Officer or the Chief Financial Officer will be added to ensure that the financial data being reported is accurate before these documents can be filed.

Categories

Reporting

Other Findings in this Audit

  • 399863 2023-001
    Material Weakness Repeat
  • 399864 2023-001
    Material Weakness Repeat
  • 399865 2023-001
    Material Weakness Repeat
  • 399866 2023-001
    Material Weakness Repeat
  • 399867 2023-001
    Material Weakness Repeat
  • 399868 2023-001
    Material Weakness Repeat
  • 976306 2023-001
    Material Weakness Repeat
  • 976307 2023-001
    Material Weakness Repeat
  • 976308 2023-001
    Material Weakness Repeat
  • 976309 2023-001
    Material Weakness Repeat
  • 976310 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $137,025
15.875 Economic, Social, and Political Development of the Territories $23,179
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $11,823