Audit 10912

FY End
2023-06-30
Total Expended
$27.24M
Findings
2
Programs
33
Year: 2023 Accepted: 2024-01-11
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
8254 2023-001 Significant Deficiency - M
584696 2023-001 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $5.70M Yes 0
15.027 Assistance to Tribally Controlled Community Colleges and Universities $3.32M - 0
81.123 National Nuclear Security Administration (nnsa) Minority Serving Institutions (msi) Program $2.19M Yes 1
84.063 Federal Pell Grant Program $2.06M - 0
84.031 Higher Education_institutional Aid $1.59M Yes 0
84.250 American Indian Vocational Rehabilitation Services $791,631 Yes 0
15.028 Tribally Controlled Community College Endowments $686,804 - 0
47.076 Education and Human Resources $607,247 - 0
84.101 Career and Technical Education - Grants to Native Americans and Alaska Natives $532,681 - 0
84.299 Indian Education -- Special Programs for Indian Children $330,505 - 0
84.042 Trio_student Support Services $320,322 - 0
10.500 Cooperative Extension Service $236,277 - 0
15.026 Indian Adult Education $214,208 - 0
93.587 Promote the Survival and Continuing Vitality of Native American Languages $204,442 - 0
10.222 Tribal Colleges Endowment Program $194,342 - 0
84.048 Career and Technical Education -- Basic Grants to States $181,334 - 0
15.032 Indian Economic Development $153,505 - 0
10.221 Tribal Colleges Education Equity Grants $150,525 - 0
84.002 Adult Education - Basic Grants to States $105,673 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $100,740 - 0
15.108 Indian Employment Assistance $97,418 - 0
93.859 Biomedical Research and Research Training $91,461 - 0
47.070 Computer and Information Science and Engineering $81,500 - 0
47.079 Office of International Science and Engineering $81,084 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $61,829 - 0
45.311 Native American and Native Hawaiian Library Services $52,659 - 0
84.007 Federal Supplemental Educational Opportunity Grants $45,108 - 0
10.517 Tribal Colleges Extension Programs $37,950 - 0
84.033 Federal Work-Study Program $33,376 - 0
10.415 Rural Rental Housing Loans $26,028 - 0
43.008 Education $2,999 - 0
84.U01 Administrative Allowance $2,415 - 0
93.093 Affordable Care Act (aca) Health Profession Opportunity Grants $104 - 0

Contacts

Name Title Type
WJ4UTAWA6J14 Tracy Azure Auditee
7014777809 Brian Anderson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Turtle Mountain Community College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Turtle Mountain Community College under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Turtle Mountain Community College, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Turtle Mountain Community College.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Turtle Mountain Community College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Of the federal expenditures presented in the schedule, the College provided federal awards to subrecipients as follows: AL Number Program Name Amount Provided to Subrecipients 81.123 National Nuclear Security Administration $ 749,134
Title: Outstanding Federal Loans Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Turtle Mountain Community College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The College has no federal loan obligations as of June 30, 2023.
Title: BIA Endowment Investment Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Turtle Mountain Community College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The College has $1,047,117 of restricted endowment moneys as of June 30, 2023. 2 CFR Part 200.502(e) states the cumulative balance of Federal awards for endowment funds that are federally restricted are considered Federal awards expended in each audit period in which the funds are still restricted, thusly $686,804 is considered expended and is shown on the schedule of expenditures of federal awards under AL #15.028. Note that the College has its own endowments so this amount will not agree to the amount reported on the Statement of Net Position.Federal Share Match Share Total Balance July 1 ,2022 $ 686,804 $ 356,907 $ 1,043,711 Activity 3,406 3,406 Withdrawals Balance June 30, 2023 $ 686,804 $ 360,313 $ 1,047,117
Title: Reconciliation of Federal Expenditures Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Turtle Mountain Community College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of the expenditures reported on the College's schedule of expenditures of federal awards to expenditures reported in the College's statement of revenues, expenditures, and changes in fund balance. Expenditures per Schedule of Expenditures of Federal Awards $ 27,242,212 Less restricted endowment (686,804) Expenditures funded by general fund, state and other funding sources 4,755,325 Expenditures per Statement of Revenue, Expenditures, and Changes in Fund Balance $ 31,310,733
Title: Advances from Grantors by AL# for Health and Human Services Funds Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Turtle Mountain Community College has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. AL # Direct Program Name Amount 93.959 Block Grants for Prevention and Treatment of Substance Abuse $ 19,960 93.653 Indian Health Service Domestic Violence Prevention Programs $ 226 Total advances from grantors - HHS funds $ 20,186

Finding Details

2023-001 Internal Control over Subrecipient Monitoring - Reporting of Subrecipient Awards Federal program information: Funding agency: Department of Energy Title: DOE NNSA ASPIRE, DOE NNSA IMPACT AL number: 81.123 Award year and number: 2023 Criteria or Specific Requirement: Per the Department of Energy's Grant Award Agreement with Turtle Mountain Community College, each action that obligated $25,000 or more in Federal funds for a subaward to an entity must be reported at http://fsrs.gov no later than the end of the month following the month in which the obligation was made. Condition: The College has not reported the actions that obligated $25,000 or more in Federal funds for a subaward to an entity. Context: We examined the sub-recipient agreements for all three subrecipients under the grants and noted that none of the actions obligating the funds had been reported. Questioned Costs: None Effect: The College did not have proper internal controls over the sub-recipient reporting requirement of the Grant and failed to properly report the sub-recipient awards. Cause: The College did not due their due dilligence in understanding the reporting requirements of the grant and there were no reviews by others over the grant agreements to catch the requirement. Repeat: No Auditor's Recommendation: We recommend that the College review all instructions for grant reporting and report the required information. In addition we recommend that the College have multiple people reviewing the Grant Agreements to ensure that requirements are not missed. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.
2023-001 Internal Control over Subrecipient Monitoring - Reporting of Subrecipient Awards Federal program information: Funding agency: Department of Energy Title: DOE NNSA ASPIRE, DOE NNSA IMPACT AL number: 81.123 Award year and number: 2023 Criteria or Specific Requirement: Per the Department of Energy's Grant Award Agreement with Turtle Mountain Community College, each action that obligated $25,000 or more in Federal funds for a subaward to an entity must be reported at http://fsrs.gov no later than the end of the month following the month in which the obligation was made. Condition: The College has not reported the actions that obligated $25,000 or more in Federal funds for a subaward to an entity. Context: We examined the sub-recipient agreements for all three subrecipients under the grants and noted that none of the actions obligating the funds had been reported. Questioned Costs: None Effect: The College did not have proper internal controls over the sub-recipient reporting requirement of the Grant and failed to properly report the sub-recipient awards. Cause: The College did not due their due dilligence in understanding the reporting requirements of the grant and there were no reviews by others over the grant agreements to catch the requirement. Repeat: No Auditor's Recommendation: We recommend that the College review all instructions for grant reporting and report the required information. In addition we recommend that the College have multiple people reviewing the Grant Agreements to ensure that requirements are not missed. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.