Finding 979666 (2023-002)

Finding 2023-002 – Program Reporting Requirements – Internal Control Over Compliance – Material Weakness Federal Program Information: Funding Agency: Department of Treasury Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award year and Number(s): 2021 and SLFRP2505 and SLFRP4740 Pass-through entity: Not applicable Type of Finding: Material Weakness in internal control over compliance (reporting) Criteria or Specific Requirement: States, U.S. territories, metropolitan cities, counties, and Tribal governments were required to submit a one-time interim report with expenditures by expenditure category covering the period from March 3, 2021, through July 31, 2021, by August 31, 2021. Tribal governments that are allocated less than $30 million in Coronavirus State and Local Fiscal Recovery Funds funding are required to submit annual project and expenditure reports. For these recipients, the initial project and expenditure report covered from March 3, 2021, through March 31, 2022, and was required to be submitted to the United States Department of Treasury by April 30, 2022. For these recipients, the subsequent annual reports cover one calendar year and must be submitted to the United States Department of Treasury by April 30. Condition: During our testing, we noted that the Department’s controls surrounding the reporting function for this program were not operating effectively to ensure that the reports were filed in a timely manner, as required by the terms of the award. Questioned Costs: None. Context: On May 15, 2023, the Department submitted the project and expenditure report (period of April 1, 2022, through March 31, 2023) to the United States Department of Treasury, which was due on April 30, 2023. On May 9, 2024, the Department submitted the project and expenditure report (period of April 1, 2023, through March 31, 2024) to the United States Department of Treasury, which was due on April 30, 2024. Effect: The report was not filed timely by the Department. Cause: The Department does not have an internal control system designed to ensure all reports are submitted by the required date. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Department’s management implement procedures to ensure that all reports are submitted by the required date. The Department’s Response/View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared a corrective action, as detailed in the accompanying Corrective Action Plan. The Department has designated Sam Rowe, Accounting Manager, as the person responsible for implementing the corrective action plan. The Department’s Tribal Administrator, Tim Good Voice, will assist Sam in implementing the corrective action plan. The Department’s planned completion date for the corrective action plan is July 15, 2024. Sam Rowe can be contacted at (405) 395-5000 for any questions regarding the finding or the related corrective action plan. Tim Good Voice can be contacted at (918) 560-6198.