Audit 350113

2024-005: Reporting – 84.041 Impact Aid (U.S. Department of Education) U.S Department of Education Criteria To ensure all data provided for completing the application is accurate and properly certified prior to submitting the application, an entity should have controls in place to mitigate risk. Condition We noted that the District was unable to support student enrollment information with review or approval by tribal leaders, BIA/tribal realty, or the special education director prior to submitting the application. Effect There is an increased risk of the student counts not being accurate thus, leading to their grant award amounts to be miscalculated. Cause Management oversight. Questioned Costs None Context The District filed one application for Impact Aid funding. This application was found to be missing documentation of formal review and approval by tribal leaders, BIA/tribal realty, or the special education director. Repeat Finding No Recommendation The District should ensure they are obtaining formal review and approval of student enrollment information by tribal leaders, BIA/tribal realty, and the special education director. Views of Responsible Officials and Planned Corrective Actions This finding was noted by the auditors on the Impact Aid application submitted in January 2023. Both applications submitted in January of 2024 and 2025 had the proper support showing student enrollment information with review or approval by tribal authority prior to submitting the application. Applications made in the future will continue to have the required documentation to support the application.

Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria Payroll charges to federal grant programs should be properly supported and approved. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of seventeen payroll transactions tested, two employee timesheets were not approved until after payroll was processed. Additionally, thirteen employees did not have a formally documented approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.

Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria Payroll charges to federal grant programs should be properly supported and approved. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of seventeen payroll transactions tested, two employee timesheets were not approved until after payroll was processed. Additionally, thirteen employees did not have a formally documented approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.

Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria Payroll charges to federal grant programs should be properly supported and approved. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of seventeen payroll transactions tested, two employee timesheets were not approved until after payroll was processed. Additionally, thirteen employees did not have a formally documented approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.

2024-005: Reporting – 84.041 Impact Aid (U.S. Department of Education) U.S Department of Education Criteria To ensure all data provided for completing the application is accurate and properly certified prior to submitting the application, an entity should have controls in place to mitigate risk. Condition We noted that the District was unable to support student enrollment information with review or approval by tribal leaders, BIA/tribal realty, or the special education director prior to submitting the application. Effect There is an increased risk of the student counts not being accurate thus, leading to their grant award amounts to be miscalculated. Cause Management oversight. Questioned Costs None Context The District filed one application for Impact Aid funding. This application was found to be missing documentation of formal review and approval by tribal leaders, BIA/tribal realty, or the special education director. Repeat Finding No Recommendation The District should ensure they are obtaining formal review and approval of student enrollment information by tribal leaders, BIA/tribal realty, and the special education director. Views of Responsible Officials and Planned Corrective Actions This finding was noted by the auditors on the Impact Aid application submitted in January 2023. Both applications submitted in January of 2024 and 2025 had the proper support showing student enrollment information with review or approval by tribal authority prior to submitting the application. Applications made in the future will continue to have the required documentation to support the application.

Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria Payroll charges to federal grant programs should be properly supported and approved. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of seventeen payroll transactions tested, two employee timesheets were not approved until after payroll was processed. Additionally, thirteen employees did not have a formally documented approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.

Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria Payroll charges to federal grant programs should be properly supported and approved. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of seventeen payroll transactions tested, two employee timesheets were not approved until after payroll was processed. Additionally, thirteen employees did not have a formally documented approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.

Education Stabilization Fund (U.S. Department of Education) Passed Through North Dakota Department of Public Instruction – F84425D Passed Through North Dakota Department of Public Instruction – F84425U Passed Through North Dakota Department of Health Criteria Payroll charges to federal grant programs should be properly supported and approved. Condition The District does not have controls in place to ensure all payroll transactions are formally approved. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Questioned Costs None Context Out of seventeen payroll transactions tested, two employee timesheets were not approved until after payroll was processed. Additionally, thirteen employees did not have a formally documented approved rate of pay. Repeat Finding Yes Recommendation The District should implement policies and procedures to ensure all timesheets are approved prior to processing payroll and that signed contracts are obtained for all employees. Views of Responsible Officials and Planned Corrective Actions To ensure that all payroll expenditures are allowable for hourly employees, timesheets will be approved by each supervisor and/or the Superintendent. Any additional pay issued to certified staff will have Superintendent approval documented on a pay request sheet. All certified employees will continue to have a signed contract on file each year. All non-certified employees will have a letter of assignment signed and on file each year.