FAC Explorer

Audit 35081

FY End
2022-06-30
Total Expended
$3.10M
Findings
4
Programs
12
Organization: Naatsis'aan Community School, Inc. (AZ)
Year: 2022 Accepted: 2023-03-30
Auditor: Cwdl Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33696 2022-004 Material Weakness - I
33697 2022-005 Significant Deficiency Yes F
610138 2022-004 Material Weakness - I
610139 2022-005 Significant Deficiency Yes F

Programs

ALN Program Spent Major Findings
15.047 Indian Education Facilities, Operations, and Maintenance $527,800 - 0
15.046 Administrative Cost Grants for Indian Schools $413,193 - 0
15.042 Indian School Equalization Program $270,422 Yes 1
84.425 Education Stabilization Fund $176,900 - 0
84.027 Special Education_grants to States $175,067 - 0
15.044 Indian Schools_student Transportation $112,444 - 0
10.559 Summer Food Service Program for Children $75,756 - 0
10.553 School Breakfast Program $40,932 - 0
84.196 Education for Homeless Children and Youth $18,866 - 0
84.010 Title I Grants to Local Educational Agencies $8,647 - 0
10.555 National School Lunch Program $7,662 - 0
84.336 Teacher Quality Partnership Grants $1,389 - 0

Contacts

Name Title Type
CQPBZDCJKKC5 Frances Stevens Auditee
9286722335 Dennis V Maschke Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the School's federal grant activity for the year ended June 30, 2022. 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). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: NOTE 3 ASSISTANCE LISTING NUMBERS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the School's federal grant activity for the year ended June 30, 2022. 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). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The program titles and Federal Assistance Listings numbers were obtained from the federal or passthrough grantor or the 2022 Federal Assistance Listings.
Title: NOTE 4 - INDIRECT COST RATE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the School's federal grant activity for the year ended June 30, 2022. 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). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The School did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR ?200.414.

Finding Details

Finding 2022-004
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Finding Number: 2022-004 Repeat Finding: Similar to prior year federal awards finding 2021-003 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of the Interior Federal Award Number: A19AV00866 Questioned Costs: None Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR ?180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System of Award Management (SAM) maintained by the General Services Administration (GSA) or (2) collecting a certification from the entity or adding a clause or condition to the covered transaction with that entity (2 CFR ?180.300). Condition/Context: For five of 8 procurements over $25,000 tested, the School did not maintain documentation to support that a current suspension and debarment check was performed. Effect: Noncompliance with grant requirements. Cause: Lack of training, management turnover Recommendation: For procurements over $25,000, the School should implement policies and procedures that ensure suspension and debarment checks are performed annually on required vendors. Response: The School concurs with this recommendation and will implement procedures to ensure compliance with grant requirements. Contact person: Frances Stevens, Business Manager
Finding 2022-005
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS (CONTINUED) Finding Number: 2022-005 Repeat Finding: Same as prior year financial statement finding 2021-003 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of the Interior Federal Award Number: A19AV00866 Questioned Costs: None Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment and Real Property Management Criteria: Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which includes the requirement that a physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Condition/Context: The School did not perform a full physical inventory within the two-year period ending June 30, 2022. Effect: Noncompliance with grant requirements. Cause: Lack of training, management turnover Recommendation: The School should implement policies and procedures that ensure a full physical inventory at least every two fiscal years and the results of the inventory are reconciled with the records in the financial software. Response: The School concurs with this recommendation and will implement procedures to ensure compliance with grant requirements. Contact person: Frances Stevens, Business Manager
Finding 2022-004
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS Finding Number: 2022-004 Repeat Finding: Similar to prior year federal awards finding 2021-003 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of the Interior Federal Award Number: A19AV00866 Questioned Costs: None Type of Finding: Noncompliance, Material Weakness Compliance Requirement: Procurement, Suspension and Debarment Criteria: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR ?180.995 and agency adopting regulations, is not suspended, or debarred or otherwise excluded from participating in the transaction. This verification may be accomplished by (1) checking the System of Award Management (SAM) maintained by the General Services Administration (GSA) or (2) collecting a certification from the entity or adding a clause or condition to the covered transaction with that entity (2 CFR ?180.300). Condition/Context: For five of 8 procurements over $25,000 tested, the School did not maintain documentation to support that a current suspension and debarment check was performed. Effect: Noncompliance with grant requirements. Cause: Lack of training, management turnover Recommendation: For procurements over $25,000, the School should implement policies and procedures that ensure suspension and debarment checks are performed annually on required vendors. Response: The School concurs with this recommendation and will implement procedures to ensure compliance with grant requirements. Contact person: Frances Stevens, Business Manager
Finding 2022-005
SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS (CONTINUED) Finding Number: 2022-005 Repeat Finding: Same as prior year financial statement finding 2021-003 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S. Department of the Interior Federal Award Number: A19AV00866 Questioned Costs: None Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Equipment and Real Property Management Criteria: Non-federal entities other than states must follow 2 CFR sections 200.313(c) through (e) which includes the requirement that a physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years. Condition/Context: The School did not perform a full physical inventory within the two-year period ending June 30, 2022. Effect: Noncompliance with grant requirements. Cause: Lack of training, management turnover Recommendation: The School should implement policies and procedures that ensure a full physical inventory at least every two fiscal years and the results of the inventory are reconciled with the records in the financial software. Response: The School concurs with this recommendation and will implement procedures to ensure compliance with grant requirements. Contact person: Frances Stevens, Business Manager