Finding Number: 2024-004 Repeat Finding: Yes, prior year finding 2023-004. 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: A23AV00827 Questioned Costs: None Type of Finding: Noncompliance, Material Weakness Compliance Requirement: L. Reporting Criteria: 2 CFR § 200.512(a) provides, in part: "The audit must be completed and the data collection form ... must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period." 2 CFR § 200.520 provides, in part: "That to qualify as a low-risk auditee and be eligible for reduced audit coverage the following condition must be met: Single audits were performed on an annual basis in accordance with the provisions of this Subpart, including submitting the data collection form and the reporting package to the FAC within the timeframe specified in § 200.512." Condition: The School did submit their audit for the fiscal year ending June 30, 2024 timely. The audit was submitted May 1, 2026, which was 396 days past the March 31, 2025 deadline. Effect: Not making all audit documentation available in a timely manner resulted in the audit and data collection form submissions to be late and, therefore, not available to the public within the required timeframe. This late submission also excludes the School from qualifying as a low-risk auditee. Cause: Management did not provide the trial balance until 14 months after the end of the fiscal year and five months after the federal reporting deadline. Throughout the audit process, management continuously refused to provide the requested information for the expenditure testing related to federal programs. Recommendation: The School should implement procedures to ensure that all audit documentation is available for the audit in a timely manner and the audit report is completed and submitted within the appropriate timeframe. View of Responsible Official: The School’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.
Finding Number: 2024-003 Repeat Finding: Repeated and modified, prior year finding 2023-003. Program Name/Assistance Listing Title: Indian Schools Student Transportation, Administrative Cost Grants for Indian Schools Assistance Listing Number: 15.044, and 15.046 Federal Agency: U.S. Department of the Interior Federal Award Number: A23AV00827 Questioned Costs: 15.044: $1,418 | 15.046: $475 Type of Finding: Noncompliance, Material Weakness Compliance Requirement: A. Activities Allowed or Unallowed, B. Allowable Costs/Cost Principles. Criteria: Indian tribes and tribal organizations may, without the approval of the Bureau of Indian Affairs (BIA), expend funds provided under a self-determination contract for purposes identified in 25 USC 450j-l(k), to the extent that the expenditure of the funds is supportive of a contracted program (25 USC 450j-l(k)). These guidelines require internal controls over expenditures of federal monies, including the use of requisitions or purchase orders, to ensure expenditures comply with federal regulations and guidelines (25 CFR 39; 25 CFR 45; 25 CFR 900). Office of Management and Budget requires that non-federal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. Control activities should include ensuring proper authorization of expenditures and reviews of operating performance. The School must ensure sufficient cash is available in cashcontrolled funds prior to authorizing expenditures. Condition: The School lacked adequate internal controls over its accounting of disbursements to ensure that a) all financial activities were properly processed and recorded and b) the School remained in compliance with federal requirements. Effect: Noncompliance with federal regulation that led to a qualified audit opinion over the listed federal programs as noted above. Cause: Management was unwilling to provide the requested documentation. Context: During our review of the School’s accounting records and internal controls, as well as through inquiry of management, we noted the following: • For three of 25 accounts payable transactions tested out of the 15.044 grant, the School did provide adequate documentation to support the allowability of the expenditure. • For two of 25 accounts payable transactions tested out of the 15.046 grant, the School did provide adequate documentation to support the allowability of the expenditure. Recommendation: The School should develop and implement stronger internal controls over its accounting of disbursements to ensure that all financial activities are properly processed, recorded, and supported, and provide the requested documentation to the audit firm when requested. View of Responsible Official: The School’s corrective action plan presented in a separate document includes the views and planned corrective action of its responsible officials. We are not required to and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.