Audit 302180

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200, Appendix II Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Context The District had one construction project carried over from the prior year in which wage rate clauses were not provided, in addition the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response See corrective action plan

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200, Appendix II Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Context The District had one construction project carried over from the prior year in which wage rate clauses were not provided, in addition the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response See corrective action plan

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200, Appendix II Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Context The District had one construction project carried over from the prior year in which wage rate clauses were not provided, in addition the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response See corrective action plan

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor or SEA, as the pass-through entity, must provide prior approval to subrecipients. Condition The District did not obtain prior approval for equipment acquisition. In addition, the approval received was for less than the expenditures incurred. Context The District purchased one capital asset during the year in which prior approval was needed to be obtained. Cause The District did not properly submit for prior approval for equipment acquisition until after the purchase had been made. The request for equipment acquisition was also submitted for less than the acquisition amount. Effect Noncompliance with Equipment/Real Property Management requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor or SEA, as the pass-through entity, must provide prior approval to subrecipients. Condition The District did not obtain prior approval for equipment acquisition. In addition, the approval received was for less than the expenditures incurred. Context The District purchased one capital asset during the year in which prior approval was needed to be obtained. Cause The District did not properly submit for prior approval for equipment acquisition until after the purchase had been made. The request for equipment acquisition was also submitted for less than the acquisition amount. Effect Noncompliance with Equipment/Real Property Management requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor or SEA, as the pass-through entity, must provide prior approval to subrecipients. Condition The District did not obtain prior approval for equipment acquisition. In addition, the approval received was for less than the expenditures incurred. Context The District purchased one capital asset during the year in which prior approval was needed to be obtained. Cause The District did not properly submit for prior approval for equipment acquisition until after the purchase had been made. The request for equipment acquisition was also submitted for less than the acquisition amount. Effect Noncompliance with Equipment/Real Property Management requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.

Assistance Listing Number 84.027; 84.173 Special Education Cluster (IDEA) Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Maintenance of Effort 34 CFR Part 300.203 Criteria IDEA Part B funds received by a local education agency (LEA) cannot be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of state and local funds, below the level of those expenditures for the proceeding year. Condition District expenditures made with state and local funds fell below the level of those expenditures for the preceding year. Cause The District used funding received from the ESSER program to reduce the expenditures paid for with state and local funding. Effect Noncompliance with Maintenance of Effort requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to monitor expenditures made with state and local funding to ensure the level of expenditures per student with disabilities remains consistent, or increases, over the prior year. Management’s Response See corrective action plan.

Assistance Listing Number 84.027; 84.173 Special Education Cluster (IDEA) Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Maintenance of Effort 34 CFR Part 300.203 Criteria IDEA Part B funds received by a local education agency (LEA) cannot be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of state and local funds, below the level of those expenditures for the proceeding year. Condition District expenditures made with state and local funds fell below the level of those expenditures for the preceding year. Cause The District used funding received from the ESSER program to reduce the expenditures paid for with state and local funding. Effect Noncompliance with Maintenance of Effort requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to monitor expenditures made with state and local funding to ensure the level of expenditures per student with disabilities remains consistent, or increases, over the prior year. Management’s Response See corrective action plan.

Assistance Listing Number 84.027; 84.173 Special Education Cluster (IDEA) Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Maintenance of Effort 34 CFR Part 300.203 Criteria IDEA Part B funds received by a local education agency (LEA) cannot be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of state and local funds, below the level of those expenditures for the proceeding year. Condition District expenditures made with state and local funds fell below the level of those expenditures for the preceding year. Cause The District used funding received from the ESSER program to reduce the expenditures paid for with state and local funding. Effect Noncompliance with Maintenance of Effort requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to monitor expenditures made with state and local funding to ensure the level of expenditures per student with disabilities remains consistent, or increases, over the prior year. Management’s Response See corrective action plan.

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200, Appendix II Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Context The District had one construction project carried over from the prior year in which wage rate clauses were not provided, in addition the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response See corrective action plan

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200, Appendix II Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Context The District had one construction project carried over from the prior year in which wage rate clauses were not provided, in addition the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response See corrective action plan

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Special Tests and Provisions 2 CFR Part 200, Appendix II Criteria For construction contracts and subcontracts greater than $2,000 funded with federal dollars, the District should verify prevailing wage rate clauses were included in the contract or subcontract and for each week in which work was performed under the contract or subcontract the District should monitor certified payroll registers to ensure contractors and subcontractors were paying employees the prevailing wage rates. Condition The District did not provide the wage rate clauses to contractors. In addition, the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing wage rates. Context The District had one construction project carried over from the prior year in which wage rate clauses were not provided, in addition the District did not obtain from contractors the certified payroll registers, nor did they perform testing to ensure contractors were paying the prevailing rates. Cause The District was unaware of the compliance requirements regarding the construction projects. Effect The District is not in compliance with Wage Rate Requirements, a part of the Special Tests and Provisions. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2022-003. Recommendation We recommend the District to review the wage rate compliance requirements as part of the special tests and provisions of this program in the compliance supplement and to create and implement a process of submitting prevailing wage rates to contractors as well as obtaining the certified payroll registers to determine if contractors are in compliance. Management’s Response See corrective action plan

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor or SEA, as the pass-through entity, must provide prior approval to subrecipients. Condition The District did not obtain prior approval for equipment acquisition. In addition, the approval received was for less than the expenditures incurred. Context The District purchased one capital asset during the year in which prior approval was needed to be obtained. Cause The District did not properly submit for prior approval for equipment acquisition until after the purchase had been made. The request for equipment acquisition was also submitted for less than the acquisition amount. Effect Noncompliance with Equipment/Real Property Management requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor or SEA, as the pass-through entity, must provide prior approval to subrecipients. Condition The District did not obtain prior approval for equipment acquisition. In addition, the approval received was for less than the expenditures incurred. Context The District purchased one capital asset during the year in which prior approval was needed to be obtained. Cause The District did not properly submit for prior approval for equipment acquisition until after the purchase had been made. The request for equipment acquisition was also submitted for less than the acquisition amount. Effect Noncompliance with Equipment/Real Property Management requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.

Assistance Listing Number 84.425 Education Stabilization Fund Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Equipment/Real Property Management Criteria Governors, SEAs, and subrecipients must receive prior approval for capital expenditures for equipment acquisition or improvements to land, buildings, or equipment. For capital equipment or improvements to land, buildings, or equipment that were purchased with grant funds, the Governor or SEA, as the pass-through entity, must provide prior approval to subrecipients. Condition The District did not obtain prior approval for equipment acquisition. In addition, the approval received was for less than the expenditures incurred. Context The District purchased one capital asset during the year in which prior approval was needed to be obtained. Cause The District did not properly submit for prior approval for equipment acquisition until after the purchase had been made. The request for equipment acquisition was also submitted for less than the acquisition amount. Effect Noncompliance with Equipment/Real Property Management requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to review all compliance requirements of federal programs to ensure they have procedures to ensure compliance with those requirements and for the requests for acquisition to be made timely and for the appropriate expenditure amount. Management’s Response See corrective action plan.

Assistance Listing Number 84.027; 84.173 Special Education Cluster (IDEA) Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Maintenance of Effort 34 CFR Part 300.203 Criteria IDEA Part B funds received by a local education agency (LEA) cannot be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of state and local funds, below the level of those expenditures for the proceeding year. Condition District expenditures made with state and local funds fell below the level of those expenditures for the preceding year. Cause The District used funding received from the ESSER program to reduce the expenditures paid for with state and local funding. Effect Noncompliance with Maintenance of Effort requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to monitor expenditures made with state and local funding to ensure the level of expenditures per student with disabilities remains consistent, or increases, over the prior year. Management’s Response See corrective action plan.

Assistance Listing Number 84.027; 84.173 Special Education Cluster (IDEA) Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Maintenance of Effort 34 CFR Part 300.203 Criteria IDEA Part B funds received by a local education agency (LEA) cannot be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of state and local funds, below the level of those expenditures for the proceeding year. Condition District expenditures made with state and local funds fell below the level of those expenditures for the preceding year. Cause The District used funding received from the ESSER program to reduce the expenditures paid for with state and local funding. Effect Noncompliance with Maintenance of Effort requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to monitor expenditures made with state and local funding to ensure the level of expenditures per student with disabilities remains consistent, or increases, over the prior year. Management’s Response See corrective action plan.

Assistance Listing Number 84.027; 84.173 Special Education Cluster (IDEA) Department of Education North Dakota Department of Public Instruction Turtle Mountain Band of Chippewa Indians Maintenance of Effort 34 CFR Part 300.203 Criteria IDEA Part B funds received by a local education agency (LEA) cannot be used to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds, or a combination of state and local funds, below the level of those expenditures for the proceeding year. Condition District expenditures made with state and local funds fell below the level of those expenditures for the preceding year. Cause The District used funding received from the ESSER program to reduce the expenditures paid for with state and local funding. Effect Noncompliance with Maintenance of Effort requirements. Questioned Costs Undeterminable. Repeat Finding This is not a repeat finding. Recommendation We recommend the District to monitor expenditures made with state and local funding to ensure the level of expenditures per student with disabilities remains consistent, or increases, over the prior year. Management’s Response See corrective action plan.