Finding Text
Finding 2023-002 – Reporting and Close Out – Significant Deficiency in Internal Controls over
Compliance
Federal program information
Funding Agency: Department of the Treasury
Program Title: Tribal Broadband Connectivity Program
Federal Assistance Listing Number: 11.029
Questioned Costs: Undeterminable
Criteria:
Federal regulations and grant and contract conditions require that applicable reports be properly
supported by accounting records before submitted. This ensures compliance with regulatory
requirements and the terms of the grants and contracts involved. Accuracy and transparency in
accounting records are crucial for demonstrating how funds are used and for meeting reporting
obligations effectively.
Condition:
We noted that the District did not have controls in place to ensure that all required reports were supported
by underlying accounting records, properly reviewed prior to submission and that all supporting
documentation was maintained.
Tribal Broadband Connectivity Program (ALN 11.029) - For financial reports (SF 425 report) that were
selected for testing, the District did not retain sufficient and accurate documentation to support the
amounts reported within the reports that reconciled back to the District’s general ledger.
Questioned Costs:
The calculation needed for questioned costs was not determinable for these instances of noncompliance.
Cause:
Control procedures have not been implemented to ensure reports are being prepared and adequately
supported.
Effect:
Without centralized controls for monitoring the retention of documentation that supports the amounts in
the reports, the reports may not be properly supported.
Auditors’ Recommendations:
The District should establish centralized controls that include identifying all required reports,
implementing effective controls over report preparation, and a monitoring function to ensure these
controls are in place and operating effectively for timely and accurate report submission.