Audit 310397

FY End
2023-09-30
Total Expended
$8.68M
Findings
18
Programs
17
Organization: Chief Dull Knife College (MT)
Year: 2023 Accepted: 2024-06-27
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403233 2023-005 Significant Deficiency - B
403234 2023-005 Significant Deficiency - B
403235 2023-005 Significant Deficiency - B
403236 2023-003 Material Weakness Yes C
403237 2023-003 Material Weakness Yes C
403238 2023-003 Material Weakness Yes C
403239 2023-004 Significant Deficiency Yes L
403240 2023-004 Significant Deficiency Yes L
403241 2023-004 Significant Deficiency Yes L
979675 2023-005 Significant Deficiency - B
979676 2023-005 Significant Deficiency - B
979677 2023-005 Significant Deficiency - B
979678 2023-003 Material Weakness Yes C
979679 2023-003 Material Weakness Yes C
979680 2023-003 Material Weakness Yes C
979681 2023-004 Significant Deficiency Yes L
979682 2023-004 Significant Deficiency Yes L
979683 2023-004 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
15.027 Assistance to Tribally Controlled Community Colleges and Universities $673,353 Yes 1
84.063 Federal Pell Grant Program $497,631 - 0
84.031 Higher Education_institutional Aid $439,126 - 0
10.766 Community Facilities Loans and Grants $333,863 - 0
10.517 Tribal Colleges Extension Programs $192,465 - 0
93.600 Head Start $187,482 - 0
84.250 American Indian Vocational Rehabilitation Services $173,585 - 0
10.221 Tribal Colleges Education Equity Grants $130,211 - 0
84.042 Trio_student Support Services $128,526 - 0
15.926 American Battlefield Protection $106,851 - 0
47.076 Education and Human Resources $99,658 - 0
93.859 Biomedical Research and Research Training $72,157 - 0
10.500 Cooperative Extension Service $52,466 - 0
15.026 Indian Adult Education $35,194 - 0
84.425 Education Stabilization Fund $34,800 Yes 2
15.224 Cultural Resource Management $16,960 - 0
47.075 Social, Behavioral, and Economic Sciences $11,724 - 0

Contacts

Name Title Type
K7EDS7P1CUJ8 Leslie Evertz Auditee
4064776215 Kimberly Dare 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 prior year expenditures. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The College has a federally negotiated indirect cost rate of 16.60%. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the College under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 College, is it not intended to, and does not, present the financial position, changes in net position, or cash flows of the College.
Title: Endowment 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 prior year expenditures. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The College has a federally negotiated indirect cost rate of 16.60%. The College has $811,977 of federally restricted endowmnet moneys as of September 30, 2023. Uniform Guidance Section 200.502 state 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.
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 prior year expenditures. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The College has a federally negotiated indirect cost rate of 16.60%. The College does not have an subrecipients.

Finding Details

2023-005 – Allowability of Expenditures Funding Agency: U.S. Department of Interior Title: Assistance to Tribally Controlled Community Colleges and Universities AL Number: 15.027 Criteria or Specific Requirement: OMB’s Uniform Guidance 200.403(g) states that, in order to be allowable under Federal awards, costs must be adequately documented. Condition: During review of the expenditures under the program, it was noted that expenditures were being requested, approved, and paid without supporting documentation. Context: We reviewed 40 expenditures paid out of the program and identified 7 instances where the expenditure was not supported with either an invoice or the provided invoice did not match the amount paid and 1 instance where the expenditure was not approved until 2 months after the expenditure happened. Questioned Costs: To be determined by grantor. Effect: The College could potentially expend grant monies on unallowable cost and activities. Cause The College did not follow its polices and procedures pertaining to expenditures. Recommendation: We recommend the College review and update its controls over expenditures and additionally review those policies and procedures with all staff. View of Responsible Official: Chief Dull Knife College has reviewed and updated the policies for expenditures and will continue to review, scrutinize and calculate all expenditure requests to eliminate any expenditures being paid without proper support or inaccurately added totals. All departments have been made aware of the policies and procedures.
2023-005 – Allowability of Expenditures Funding Agency: U.S. Department of Interior Title: Assistance to Tribally Controlled Community Colleges and Universities AL Number: 15.027 Criteria or Specific Requirement: OMB’s Uniform Guidance 200.403(g) states that, in order to be allowable under Federal awards, costs must be adequately documented. Condition: During review of the expenditures under the program, it was noted that expenditures were being requested, approved, and paid without supporting documentation. Context: We reviewed 40 expenditures paid out of the program and identified 7 instances where the expenditure was not supported with either an invoice or the provided invoice did not match the amount paid and 1 instance where the expenditure was not approved until 2 months after the expenditure happened. Questioned Costs: To be determined by grantor. Effect: The College could potentially expend grant monies on unallowable cost and activities. Cause The College did not follow its polices and procedures pertaining to expenditures. Recommendation: We recommend the College review and update its controls over expenditures and additionally review those policies and procedures with all staff. View of Responsible Official: Chief Dull Knife College has reviewed and updated the policies for expenditures and will continue to review, scrutinize and calculate all expenditure requests to eliminate any expenditures being paid without proper support or inaccurately added totals. All departments have been made aware of the policies and procedures.
2023-005 – Allowability of Expenditures Funding Agency: U.S. Department of Interior Title: Assistance to Tribally Controlled Community Colleges and Universities AL Number: 15.027 Criteria or Specific Requirement: OMB’s Uniform Guidance 200.403(g) states that, in order to be allowable under Federal awards, costs must be adequately documented. Condition: During review of the expenditures under the program, it was noted that expenditures were being requested, approved, and paid without supporting documentation. Context: We reviewed 40 expenditures paid out of the program and identified 7 instances where the expenditure was not supported with either an invoice or the provided invoice did not match the amount paid and 1 instance where the expenditure was not approved until 2 months after the expenditure happened. Questioned Costs: To be determined by grantor. Effect: The College could potentially expend grant monies on unallowable cost and activities. Cause The College did not follow its polices and procedures pertaining to expenditures. Recommendation: We recommend the College review and update its controls over expenditures and additionally review those policies and procedures with all staff. View of Responsible Official: Chief Dull Knife College has reviewed and updated the policies for expenditures and will continue to review, scrutinize and calculate all expenditure requests to eliminate any expenditures being paid without proper support or inaccurately added totals. All departments have been made aware of the policies and procedures.
2023-003 – Cash Management Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 84.425K Criteria or Specific Requirement The compliance supplement for the Higher Education Emergency Relief Fund requires that the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from the Department of Education’s G5 grants system and Institutional Aid Portion and all other funds should be disbursed within 3 calendar days of the drawdown from G5. Condition: We reviewed the cash management requirements of the Higher Education Emergency Relief Fund for the two draws the College made during the fiscal year. During this testing we noted that 2 of the draws exceeded the amounts expended and the funding was not disbursed in 15 days for the Student Aid portion and was not disbursed within 3 days for Tribally Controlled Colleges and Universities portion. Context: During our testing of draws made for Education Emergency Relief Fund in the prior year we noted that the College had over drawn funds in the amount of $1,017,855. Of that amount, $932,669 was returned to the grantor in March of 2023. During our testing of draws in the current year, we noted that the College made a draw in February 2023 in the amount of $182,237 and expended only $153,387. The College also made a second and final draw in June 2023 in the amount of $957,726 and expended only $644,960. In each case, the excess was not expended in the required timeframe. Finally, the College incurred additional expenditures in the amount of $328,243 in the timeframe of July 2023 through September 2023 leaving a total overdraw of funds in the amount of $98,559 which was returned to the grantor in January of 2024. Questioned Costs: We noted $98,559 of questioned costs. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused the College to be short staffed during the period when the draws took place and an error occurred. Recommendation: The College should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and that cash request are made in accordance with immediate cash needs. View of Responsible Official: As is the case with most higher education institutions and governmental entities, the College has struggled with the COVID pandemic and its aftermath. Essential functions were disrupted, including several key accounting, finance, functions due to employees being out sick. Chief Dull Knife College had a discrepancy occur when drawing down funds in which it was done in error twice and an aggregate difference from the previous year was carried over. This was discovered and the difference was sent back to HEERF. The HEERF funding has been reconciled and concluded. The College had more than sufficient money in the bank to cover all of their expenses so this money was not used to cover any expenses. Chief Dull Knife College takes the responsibility of drawing money from Grant Programs very crucial and will make all efforts and policies to ensure this type of error does not occur.
2023-003 – Cash Management Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 84.425K Criteria or Specific Requirement The compliance supplement for the Higher Education Emergency Relief Fund requires that the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from the Department of Education’s G5 grants system and Institutional Aid Portion and all other funds should be disbursed within 3 calendar days of the drawdown from G5. Condition: We reviewed the cash management requirements of the Higher Education Emergency Relief Fund for the two draws the College made during the fiscal year. During this testing we noted that 2 of the draws exceeded the amounts expended and the funding was not disbursed in 15 days for the Student Aid portion and was not disbursed within 3 days for Tribally Controlled Colleges and Universities portion. Context: During our testing of draws made for Education Emergency Relief Fund in the prior year we noted that the College had over drawn funds in the amount of $1,017,855. Of that amount, $932,669 was returned to the grantor in March of 2023. During our testing of draws in the current year, we noted that the College made a draw in February 2023 in the amount of $182,237 and expended only $153,387. The College also made a second and final draw in June 2023 in the amount of $957,726 and expended only $644,960. In each case, the excess was not expended in the required timeframe. Finally, the College incurred additional expenditures in the amount of $328,243 in the timeframe of July 2023 through September 2023 leaving a total overdraw of funds in the amount of $98,559 which was returned to the grantor in January of 2024. Questioned Costs: We noted $98,559 of questioned costs. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused the College to be short staffed during the period when the draws took place and an error occurred. Recommendation: The College should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and that cash request are made in accordance with immediate cash needs. View of Responsible Official: As is the case with most higher education institutions and governmental entities, the College has struggled with the COVID pandemic and its aftermath. Essential functions were disrupted, including several key accounting, finance, functions due to employees being out sick. Chief Dull Knife College had a discrepancy occur when drawing down funds in which it was done in error twice and an aggregate difference from the previous year was carried over. This was discovered and the difference was sent back to HEERF. The HEERF funding has been reconciled and concluded. The College had more than sufficient money in the bank to cover all of their expenses so this money was not used to cover any expenses. Chief Dull Knife College takes the responsibility of drawing money from Grant Programs very crucial and will make all efforts and policies to ensure this type of error does not occur.
2023-003 – Cash Management Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 84.425K Criteria or Specific Requirement The compliance supplement for the Higher Education Emergency Relief Fund requires that the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from the Department of Education’s G5 grants system and Institutional Aid Portion and all other funds should be disbursed within 3 calendar days of the drawdown from G5. Condition: We reviewed the cash management requirements of the Higher Education Emergency Relief Fund for the two draws the College made during the fiscal year. During this testing we noted that 2 of the draws exceeded the amounts expended and the funding was not disbursed in 15 days for the Student Aid portion and was not disbursed within 3 days for Tribally Controlled Colleges and Universities portion. Context: During our testing of draws made for Education Emergency Relief Fund in the prior year we noted that the College had over drawn funds in the amount of $1,017,855. Of that amount, $932,669 was returned to the grantor in March of 2023. During our testing of draws in the current year, we noted that the College made a draw in February 2023 in the amount of $182,237 and expended only $153,387. The College also made a second and final draw in June 2023 in the amount of $957,726 and expended only $644,960. In each case, the excess was not expended in the required timeframe. Finally, the College incurred additional expenditures in the amount of $328,243 in the timeframe of July 2023 through September 2023 leaving a total overdraw of funds in the amount of $98,559 which was returned to the grantor in January of 2024. Questioned Costs: We noted $98,559 of questioned costs. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused the College to be short staffed during the period when the draws took place and an error occurred. Recommendation: The College should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and that cash request are made in accordance with immediate cash needs. View of Responsible Official: As is the case with most higher education institutions and governmental entities, the College has struggled with the COVID pandemic and its aftermath. Essential functions were disrupted, including several key accounting, finance, functions due to employees being out sick. Chief Dull Knife College had a discrepancy occur when drawing down funds in which it was done in error twice and an aggregate difference from the previous year was carried over. This was discovered and the difference was sent back to HEERF. The HEERF funding has been reconciled and concluded. The College had more than sufficient money in the bank to cover all of their expenses so this money was not used to cover any expenses. Chief Dull Knife College takes the responsibility of drawing money from Grant Programs very crucial and will make all efforts and policies to ensure this type of error does not occur.
2023-004 – Reporting Requirements Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 4.425K Criteria or Specific Requirement: Quarterly Reports were required to be submitted 10 days from the close of a quarter. These reports were required to be publicly reported for the student portion, and the institution portion. Additionally, an annual report covering the period January 1, 2022 to December 31, 2022 is required to be filed by April 10, 2023. Condition: The College did not have the 3rd quarter of 2023 report or the required annual report on its website. The 3rd quarter report for 2023 was posted but when the link was checked the webpage was unavailable. Finally, the fiscal year-end report was not posted to the College’s website. Context: Per requirements the forms must be conspicuously posted on the institution’s primary website on the same page the reports of the IHE’s activities as to the emergency financial aid grants to students are posted. Questioned Costs: None Effect: The College did not meet the posting requirements for the reports. Cause The College did not realize that the way that they were posting the reports caused them to be removed automatically after a set number of days on the website and forgot to upload the required annual report. Recommendation: For future grants, we recommend thorough review of the reporting requirements to avoid missed deadlines or omissions or portions of the requirements. View of Responsible Official: Chief Dull Knife College will continue to review reporting requirements for all grants received. HEERF reports were posted to the College’s website, but the third quarter 2023 report was posted in the Financial Section rather than the IHE’s activities section. This procedure is being corrected and will be reviewed for all grants.
2023-004 – Reporting Requirements Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 4.425K Criteria or Specific Requirement: Quarterly Reports were required to be submitted 10 days from the close of a quarter. These reports were required to be publicly reported for the student portion, and the institution portion. Additionally, an annual report covering the period January 1, 2022 to December 31, 2022 is required to be filed by April 10, 2023. Condition: The College did not have the 3rd quarter of 2023 report or the required annual report on its website. The 3rd quarter report for 2023 was posted but when the link was checked the webpage was unavailable. Finally, the fiscal year-end report was not posted to the College’s website. Context: Per requirements the forms must be conspicuously posted on the institution’s primary website on the same page the reports of the IHE’s activities as to the emergency financial aid grants to students are posted. Questioned Costs: None Effect: The College did not meet the posting requirements for the reports. Cause The College did not realize that the way that they were posting the reports caused them to be removed automatically after a set number of days on the website and forgot to upload the required annual report. Recommendation: For future grants, we recommend thorough review of the reporting requirements to avoid missed deadlines or omissions or portions of the requirements. View of Responsible Official: Chief Dull Knife College will continue to review reporting requirements for all grants received. HEERF reports were posted to the College’s website, but the third quarter 2023 report was posted in the Financial Section rather than the IHE’s activities section. This procedure is being corrected and will be reviewed for all grants.
2023-004 – Reporting Requirements Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 4.425K Criteria or Specific Requirement: Quarterly Reports were required to be submitted 10 days from the close of a quarter. These reports were required to be publicly reported for the student portion, and the institution portion. Additionally, an annual report covering the period January 1, 2022 to December 31, 2022 is required to be filed by April 10, 2023. Condition: The College did not have the 3rd quarter of 2023 report or the required annual report on its website. The 3rd quarter report for 2023 was posted but when the link was checked the webpage was unavailable. Finally, the fiscal year-end report was not posted to the College’s website. Context: Per requirements the forms must be conspicuously posted on the institution’s primary website on the same page the reports of the IHE’s activities as to the emergency financial aid grants to students are posted. Questioned Costs: None Effect: The College did not meet the posting requirements for the reports. Cause The College did not realize that the way that they were posting the reports caused them to be removed automatically after a set number of days on the website and forgot to upload the required annual report. Recommendation: For future grants, we recommend thorough review of the reporting requirements to avoid missed deadlines or omissions or portions of the requirements. View of Responsible Official: Chief Dull Knife College will continue to review reporting requirements for all grants received. HEERF reports were posted to the College’s website, but the third quarter 2023 report was posted in the Financial Section rather than the IHE’s activities section. This procedure is being corrected and will be reviewed for all grants.
2023-005 – Allowability of Expenditures Funding Agency: U.S. Department of Interior Title: Assistance to Tribally Controlled Community Colleges and Universities AL Number: 15.027 Criteria or Specific Requirement: OMB’s Uniform Guidance 200.403(g) states that, in order to be allowable under Federal awards, costs must be adequately documented. Condition: During review of the expenditures under the program, it was noted that expenditures were being requested, approved, and paid without supporting documentation. Context: We reviewed 40 expenditures paid out of the program and identified 7 instances where the expenditure was not supported with either an invoice or the provided invoice did not match the amount paid and 1 instance where the expenditure was not approved until 2 months after the expenditure happened. Questioned Costs: To be determined by grantor. Effect: The College could potentially expend grant monies on unallowable cost and activities. Cause The College did not follow its polices and procedures pertaining to expenditures. Recommendation: We recommend the College review and update its controls over expenditures and additionally review those policies and procedures with all staff. View of Responsible Official: Chief Dull Knife College has reviewed and updated the policies for expenditures and will continue to review, scrutinize and calculate all expenditure requests to eliminate any expenditures being paid without proper support or inaccurately added totals. All departments have been made aware of the policies and procedures.
2023-005 – Allowability of Expenditures Funding Agency: U.S. Department of Interior Title: Assistance to Tribally Controlled Community Colleges and Universities AL Number: 15.027 Criteria or Specific Requirement: OMB’s Uniform Guidance 200.403(g) states that, in order to be allowable under Federal awards, costs must be adequately documented. Condition: During review of the expenditures under the program, it was noted that expenditures were being requested, approved, and paid without supporting documentation. Context: We reviewed 40 expenditures paid out of the program and identified 7 instances where the expenditure was not supported with either an invoice or the provided invoice did not match the amount paid and 1 instance where the expenditure was not approved until 2 months after the expenditure happened. Questioned Costs: To be determined by grantor. Effect: The College could potentially expend grant monies on unallowable cost and activities. Cause The College did not follow its polices and procedures pertaining to expenditures. Recommendation: We recommend the College review and update its controls over expenditures and additionally review those policies and procedures with all staff. View of Responsible Official: Chief Dull Knife College has reviewed and updated the policies for expenditures and will continue to review, scrutinize and calculate all expenditure requests to eliminate any expenditures being paid without proper support or inaccurately added totals. All departments have been made aware of the policies and procedures.
2023-005 – Allowability of Expenditures Funding Agency: U.S. Department of Interior Title: Assistance to Tribally Controlled Community Colleges and Universities AL Number: 15.027 Criteria or Specific Requirement: OMB’s Uniform Guidance 200.403(g) states that, in order to be allowable under Federal awards, costs must be adequately documented. Condition: During review of the expenditures under the program, it was noted that expenditures were being requested, approved, and paid without supporting documentation. Context: We reviewed 40 expenditures paid out of the program and identified 7 instances where the expenditure was not supported with either an invoice or the provided invoice did not match the amount paid and 1 instance where the expenditure was not approved until 2 months after the expenditure happened. Questioned Costs: To be determined by grantor. Effect: The College could potentially expend grant monies on unallowable cost and activities. Cause The College did not follow its polices and procedures pertaining to expenditures. Recommendation: We recommend the College review and update its controls over expenditures and additionally review those policies and procedures with all staff. View of Responsible Official: Chief Dull Knife College has reviewed and updated the policies for expenditures and will continue to review, scrutinize and calculate all expenditure requests to eliminate any expenditures being paid without proper support or inaccurately added totals. All departments have been made aware of the policies and procedures.
2023-003 – Cash Management Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 84.425K Criteria or Specific Requirement The compliance supplement for the Higher Education Emergency Relief Fund requires that the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from the Department of Education’s G5 grants system and Institutional Aid Portion and all other funds should be disbursed within 3 calendar days of the drawdown from G5. Condition: We reviewed the cash management requirements of the Higher Education Emergency Relief Fund for the two draws the College made during the fiscal year. During this testing we noted that 2 of the draws exceeded the amounts expended and the funding was not disbursed in 15 days for the Student Aid portion and was not disbursed within 3 days for Tribally Controlled Colleges and Universities portion. Context: During our testing of draws made for Education Emergency Relief Fund in the prior year we noted that the College had over drawn funds in the amount of $1,017,855. Of that amount, $932,669 was returned to the grantor in March of 2023. During our testing of draws in the current year, we noted that the College made a draw in February 2023 in the amount of $182,237 and expended only $153,387. The College also made a second and final draw in June 2023 in the amount of $957,726 and expended only $644,960. In each case, the excess was not expended in the required timeframe. Finally, the College incurred additional expenditures in the amount of $328,243 in the timeframe of July 2023 through September 2023 leaving a total overdraw of funds in the amount of $98,559 which was returned to the grantor in January of 2024. Questioned Costs: We noted $98,559 of questioned costs. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused the College to be short staffed during the period when the draws took place and an error occurred. Recommendation: The College should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and that cash request are made in accordance with immediate cash needs. View of Responsible Official: As is the case with most higher education institutions and governmental entities, the College has struggled with the COVID pandemic and its aftermath. Essential functions were disrupted, including several key accounting, finance, functions due to employees being out sick. Chief Dull Knife College had a discrepancy occur when drawing down funds in which it was done in error twice and an aggregate difference from the previous year was carried over. This was discovered and the difference was sent back to HEERF. The HEERF funding has been reconciled and concluded. The College had more than sufficient money in the bank to cover all of their expenses so this money was not used to cover any expenses. Chief Dull Knife College takes the responsibility of drawing money from Grant Programs very crucial and will make all efforts and policies to ensure this type of error does not occur.
2023-003 – Cash Management Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 84.425K Criteria or Specific Requirement The compliance supplement for the Higher Education Emergency Relief Fund requires that the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from the Department of Education’s G5 grants system and Institutional Aid Portion and all other funds should be disbursed within 3 calendar days of the drawdown from G5. Condition: We reviewed the cash management requirements of the Higher Education Emergency Relief Fund for the two draws the College made during the fiscal year. During this testing we noted that 2 of the draws exceeded the amounts expended and the funding was not disbursed in 15 days for the Student Aid portion and was not disbursed within 3 days for Tribally Controlled Colleges and Universities portion. Context: During our testing of draws made for Education Emergency Relief Fund in the prior year we noted that the College had over drawn funds in the amount of $1,017,855. Of that amount, $932,669 was returned to the grantor in March of 2023. During our testing of draws in the current year, we noted that the College made a draw in February 2023 in the amount of $182,237 and expended only $153,387. The College also made a second and final draw in June 2023 in the amount of $957,726 and expended only $644,960. In each case, the excess was not expended in the required timeframe. Finally, the College incurred additional expenditures in the amount of $328,243 in the timeframe of July 2023 through September 2023 leaving a total overdraw of funds in the amount of $98,559 which was returned to the grantor in January of 2024. Questioned Costs: We noted $98,559 of questioned costs. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused the College to be short staffed during the period when the draws took place and an error occurred. Recommendation: The College should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and that cash request are made in accordance with immediate cash needs. View of Responsible Official: As is the case with most higher education institutions and governmental entities, the College has struggled with the COVID pandemic and its aftermath. Essential functions were disrupted, including several key accounting, finance, functions due to employees being out sick. Chief Dull Knife College had a discrepancy occur when drawing down funds in which it was done in error twice and an aggregate difference from the previous year was carried over. This was discovered and the difference was sent back to HEERF. The HEERF funding has been reconciled and concluded. The College had more than sufficient money in the bank to cover all of their expenses so this money was not used to cover any expenses. Chief Dull Knife College takes the responsibility of drawing money from Grant Programs very crucial and will make all efforts and policies to ensure this type of error does not occur.
2023-003 – Cash Management Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 84.425K Criteria or Specific Requirement The compliance supplement for the Higher Education Emergency Relief Fund requires that the Student Aid Portion should be disbursed within 15 calendar days of the drawdown from the Department of Education’s G5 grants system and Institutional Aid Portion and all other funds should be disbursed within 3 calendar days of the drawdown from G5. Condition: We reviewed the cash management requirements of the Higher Education Emergency Relief Fund for the two draws the College made during the fiscal year. During this testing we noted that 2 of the draws exceeded the amounts expended and the funding was not disbursed in 15 days for the Student Aid portion and was not disbursed within 3 days for Tribally Controlled Colleges and Universities portion. Context: During our testing of draws made for Education Emergency Relief Fund in the prior year we noted that the College had over drawn funds in the amount of $1,017,855. Of that amount, $932,669 was returned to the grantor in March of 2023. During our testing of draws in the current year, we noted that the College made a draw in February 2023 in the amount of $182,237 and expended only $153,387. The College also made a second and final draw in June 2023 in the amount of $957,726 and expended only $644,960. In each case, the excess was not expended in the required timeframe. Finally, the College incurred additional expenditures in the amount of $328,243 in the timeframe of July 2023 through September 2023 leaving a total overdraw of funds in the amount of $98,559 which was returned to the grantor in January of 2024. Questioned Costs: We noted $98,559 of questioned costs. Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused the College to be short staffed during the period when the draws took place and an error occurred. Recommendation: The College should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and that cash request are made in accordance with immediate cash needs. View of Responsible Official: As is the case with most higher education institutions and governmental entities, the College has struggled with the COVID pandemic and its aftermath. Essential functions were disrupted, including several key accounting, finance, functions due to employees being out sick. Chief Dull Knife College had a discrepancy occur when drawing down funds in which it was done in error twice and an aggregate difference from the previous year was carried over. This was discovered and the difference was sent back to HEERF. The HEERF funding has been reconciled and concluded. The College had more than sufficient money in the bank to cover all of their expenses so this money was not used to cover any expenses. Chief Dull Knife College takes the responsibility of drawing money from Grant Programs very crucial and will make all efforts and policies to ensure this type of error does not occur.
2023-004 – Reporting Requirements Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 4.425K Criteria or Specific Requirement: Quarterly Reports were required to be submitted 10 days from the close of a quarter. These reports were required to be publicly reported for the student portion, and the institution portion. Additionally, an annual report covering the period January 1, 2022 to December 31, 2022 is required to be filed by April 10, 2023. Condition: The College did not have the 3rd quarter of 2023 report or the required annual report on its website. The 3rd quarter report for 2023 was posted but when the link was checked the webpage was unavailable. Finally, the fiscal year-end report was not posted to the College’s website. Context: Per requirements the forms must be conspicuously posted on the institution’s primary website on the same page the reports of the IHE’s activities as to the emergency financial aid grants to students are posted. Questioned Costs: None Effect: The College did not meet the posting requirements for the reports. Cause The College did not realize that the way that they were posting the reports caused them to be removed automatically after a set number of days on the website and forgot to upload the required annual report. Recommendation: For future grants, we recommend thorough review of the reporting requirements to avoid missed deadlines or omissions or portions of the requirements. View of Responsible Official: Chief Dull Knife College will continue to review reporting requirements for all grants received. HEERF reports were posted to the College’s website, but the third quarter 2023 report was posted in the Financial Section rather than the IHE’s activities section. This procedure is being corrected and will be reviewed for all grants.
2023-004 – Reporting Requirements Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 4.425K Criteria or Specific Requirement: Quarterly Reports were required to be submitted 10 days from the close of a quarter. These reports were required to be publicly reported for the student portion, and the institution portion. Additionally, an annual report covering the period January 1, 2022 to December 31, 2022 is required to be filed by April 10, 2023. Condition: The College did not have the 3rd quarter of 2023 report or the required annual report on its website. The 3rd quarter report for 2023 was posted but when the link was checked the webpage was unavailable. Finally, the fiscal year-end report was not posted to the College’s website. Context: Per requirements the forms must be conspicuously posted on the institution’s primary website on the same page the reports of the IHE’s activities as to the emergency financial aid grants to students are posted. Questioned Costs: None Effect: The College did not meet the posting requirements for the reports. Cause The College did not realize that the way that they were posting the reports caused them to be removed automatically after a set number of days on the website and forgot to upload the required annual report. Recommendation: For future grants, we recommend thorough review of the reporting requirements to avoid missed deadlines or omissions or portions of the requirements. View of Responsible Official: Chief Dull Knife College will continue to review reporting requirements for all grants received. HEERF reports were posted to the College’s website, but the third quarter 2023 report was posted in the Financial Section rather than the IHE’s activities section. This procedure is being corrected and will be reviewed for all grants.
2023-004 – Reporting Requirements Funding Agency: U.S. Department of Education Title: Higher Education Emergency Relief Fund AL Number: 84.425E, 84.425F, 4.425K Criteria or Specific Requirement: Quarterly Reports were required to be submitted 10 days from the close of a quarter. These reports were required to be publicly reported for the student portion, and the institution portion. Additionally, an annual report covering the period January 1, 2022 to December 31, 2022 is required to be filed by April 10, 2023. Condition: The College did not have the 3rd quarter of 2023 report or the required annual report on its website. The 3rd quarter report for 2023 was posted but when the link was checked the webpage was unavailable. Finally, the fiscal year-end report was not posted to the College’s website. Context: Per requirements the forms must be conspicuously posted on the institution’s primary website on the same page the reports of the IHE’s activities as to the emergency financial aid grants to students are posted. Questioned Costs: None Effect: The College did not meet the posting requirements for the reports. Cause The College did not realize that the way that they were posting the reports caused them to be removed automatically after a set number of days on the website and forgot to upload the required annual report. Recommendation: For future grants, we recommend thorough review of the reporting requirements to avoid missed deadlines or omissions or portions of the requirements. View of Responsible Official: Chief Dull Knife College will continue to review reporting requirements for all grants received. HEERF reports were posted to the College’s website, but the third quarter 2023 report was posted in the Financial Section rather than the IHE’s activities section. This procedure is being corrected and will be reviewed for all grants.