Audit 35334

2022-001 Account Reconciliations Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Criteria: The School is responsible for maintaining adequate internal controls over its accounting records, account balances, and financial statement disclosures. Accounting records should include a complete, balanced general ledger that records all transactions that is supported by appropriate subsidiary records so that accurate financial statements can be prepared. Procedures should be in place to ensure that balance sheet accounts are independently reviewed and reconciled to the subsidiary records in a timely and effective manner. Cause: Turnover with School personnel led to a lapse in the bank reconciliations being performed accurately and timely. Effect: Without established and adequate internal controls and reconciliation procedures, the School?s balances lack certainty about the accuracy of the balances. Also, the probability that fraud or material errors will occur and go undetected generally increases. Auditor's Recommendation: We recommend management evaluate all aspects of the financial close and reporting process as well as the account reconciliation process and establish adequate internal controls and procedures to ensure timely and accurate financial statements and supporting schedules and to ensure timely compliance requirements are met. View Of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.

2022-002 Compliance with IRS and state payroll tax deposit requirements Condition: Payroll tax deposits on employer taxes and withholding taxes were not deposited in a timely manner. Criteria: The Internal Revenue Service and State tax agencies require timely filing of payroll tax deposits of employer taxes and payroll withholding taxes. Cause: Turnover with School personnel led to a lapse in the filing of payroll tax deposits. Effect: Without the timely filing of payroll tax deposits, penalties and interest will accrue and possible levies of outstanding amounts will occur. Auditor's Recommendation: We recommend school personnel learn the payroll deposit reporting requirements of all taxing agencies. View Of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.

Condition: During our test work we discovered that form SF-425 due to the Bureau of Indian Education was not filed by the July 31, 2022, due date. Criteria: SF-425 reports are due to the cognizant agency by the end of the month following each quarter. Cause: Turnover with School personnel led to a lapse in the required reporting dates for form SFS-425. Effect: The School is not in compliance with grant reporting requirements. Auditor's Recommendation: We recommend following due date requirements for grant reporting of forms SF-425. Views of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.

2022-001 Account Reconciliations Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Criteria: The School is responsible for maintaining adequate internal controls over its accounting records, account balances, and financial statement disclosures. Accounting records should include a complete, balanced general ledger that records all transactions that is supported by appropriate subsidiary records so that accurate financial statements can be prepared. Procedures should be in place to ensure that balance sheet accounts are independently reviewed and reconciled to the subsidiary records in a timely and effective manner. Cause: Turnover with School personnel led to a lapse in the bank reconciliations being performed accurately and timely. Effect: Without established and adequate internal controls and reconciliation procedures, the School?s balances lack certainty about the accuracy of the balances. Also, the probability that fraud or material errors will occur and go undetected generally increases. Auditor's Recommendation: We recommend management evaluate all aspects of the financial close and reporting process as well as the account reconciliation process and establish adequate internal controls and procedures to ensure timely and accurate financial statements and supporting schedules and to ensure timely compliance requirements are met. View Of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.

2022-002 Compliance with IRS and state payroll tax deposit requirements Condition: Payroll tax deposits on employer taxes and withholding taxes were not deposited in a timely manner. Criteria: The Internal Revenue Service and State tax agencies require timely filing of payroll tax deposits of employer taxes and payroll withholding taxes. Cause: Turnover with School personnel led to a lapse in the filing of payroll tax deposits. Effect: Without the timely filing of payroll tax deposits, penalties and interest will accrue and possible levies of outstanding amounts will occur. Auditor's Recommendation: We recommend school personnel learn the payroll deposit reporting requirements of all taxing agencies. View Of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.

Condition: During our test work we discovered that form SF-425 due to the Bureau of Indian Education was not filed by the July 31, 2022, due date. Criteria: SF-425 reports are due to the cognizant agency by the end of the month following each quarter. Cause: Turnover with School personnel led to a lapse in the required reporting dates for form SFS-425. Effect: The School is not in compliance with grant reporting requirements. Auditor's Recommendation: We recommend following due date requirements for grant reporting of forms SF-425. Views of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.