LUKACHUKAI COMMUNITY SCHOOL, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 SECTION II ? FINANCIAL STATEMENT FINDINGS 2022-001 Account Reconciliations - Repeated (Prior Year Finding 2021-001 and 2020-001) Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Current policies and procedures do not provide for segregation of duties as the Business Manager is to post and reconcile transactions without any review process. 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: There was a lack of established internal controls and processes over the financial reporting and reconciliation process to ensure timely and accurate financial reporting. 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. Repeat: Yes ? Years as Repeat Finding: Two 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.
SECTION III ? AUDIT FINDINGS IN RELATION TO FEDERAL AWARDS 2022-002 Special Tests and Provisions Test Work ? Repeated (Prior Year Finding 2021-003) Funding agency: U.S. Department of the Interior 07/01/2021 06 /? 30/2022 A19AV00941 Titles: Indian School Equalization program Assistance Listing Number: (ISEP) 15.042 Award Year: 07/01/2021 06 /? 30/2022 Award number: A19AV00941 CONDITION: During our test work over special tests and provisions, we noted the oversight agency (Bureau of Indian Education) conducted an investigation and found the background checks were not performed properly. Criteria: The Indian Child Protection and Family Violence Prevention Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children. The Act further states that the Indian tribe or tribal organization may employ individuals in those positions only if the individual meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63), as the Indian tribe or tribal organization establishes. Questioned Costs: Unknown Cause: The School policies were not followed or were not in place. Effect: The School is not in compliance with the special tests and provisions requirement. Repeat: Yes ? Years as Repeat Finding: One Auditor's Recommendation: We recommend that the School ensure that employees follow the policies and procedures that are in place along with the compliance requirements for the Indian School Equalization Program and ensure that that the compliance requirement is being followed. Views of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.
LUKACHUKAI COMMUNITY SCHOOL, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 SECTION II ? FINANCIAL STATEMENT FINDINGS 2022-001 Account Reconciliations - Repeated (Prior Year Finding 2021-001 and 2020-001) Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Current policies and procedures do not provide for segregation of duties as the Business Manager is to post and reconcile transactions without any review process. 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: There was a lack of established internal controls and processes over the financial reporting and reconciliation process to ensure timely and accurate financial reporting. 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. Repeat: Yes ? Years as Repeat Finding: Two 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.
SECTION III ? AUDIT FINDINGS IN RELATION TO FEDERAL AWARDS 2022-002 Special Tests and Provisions Test Work ? Repeated (Prior Year Finding 2021-003) Funding agency: U.S. Department of the Interior 07/01/2021 06 /? 30/2022 A19AV00941 Titles: Indian School Equalization program Assistance Listing Number: (ISEP) 15.042 Award Year: 07/01/2021 06 /? 30/2022 Award number: A19AV00941 CONDITION: During our test work over special tests and provisions, we noted the oversight agency (Bureau of Indian Education) conducted an investigation and found the background checks were not performed properly. Criteria: The Indian Child Protection and Family Violence Prevention Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children. The Act further states that the Indian tribe or tribal organization may employ individuals in those positions only if the individual meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63), as the Indian tribe or tribal organization establishes. Questioned Costs: Unknown Cause: The School policies were not followed or were not in place. Effect: The School is not in compliance with the special tests and provisions requirement. Repeat: Yes ? Years as Repeat Finding: One Auditor's Recommendation: We recommend that the School ensure that employees follow the policies and procedures that are in place along with the compliance requirements for the Indian School Equalization Program and ensure that that the compliance requirement is being followed. Views of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.
LUKACHUKAI COMMUNITY SCHOOL, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 SECTION II ? FINANCIAL STATEMENT FINDINGS 2022-001 Account Reconciliations - Repeated (Prior Year Finding 2021-001 and 2020-001) Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Current policies and procedures do not provide for segregation of duties as the Business Manager is to post and reconcile transactions without any review process. 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: There was a lack of established internal controls and processes over the financial reporting and reconciliation process to ensure timely and accurate financial reporting. 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. Repeat: Yes ? Years as Repeat Finding: Two 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.
SECTION III ? AUDIT FINDINGS IN RELATION TO FEDERAL AWARDS 2022-002 Special Tests and Provisions Test Work ? Repeated (Prior Year Finding 2021-003) Funding agency: U.S. Department of the Interior 07/01/2021 06 /? 30/2022 A19AV00941 Titles: Indian School Equalization program Assistance Listing Number: (ISEP) 15.042 Award Year: 07/01/2021 06 /? 30/2022 Award number: A19AV00941 CONDITION: During our test work over special tests and provisions, we noted the oversight agency (Bureau of Indian Education) conducted an investigation and found the background checks were not performed properly. Criteria: The Indian Child Protection and Family Violence Prevention Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children. The Act further states that the Indian tribe or tribal organization may employ individuals in those positions only if the individual meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63), as the Indian tribe or tribal organization establishes. Questioned Costs: Unknown Cause: The School policies were not followed or were not in place. Effect: The School is not in compliance with the special tests and provisions requirement. Repeat: Yes ? Years as Repeat Finding: One Auditor's Recommendation: We recommend that the School ensure that employees follow the policies and procedures that are in place along with the compliance requirements for the Indian School Equalization Program and ensure that that the compliance requirement is being followed. Views of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.
LUKACHUKAI COMMUNITY SCHOOL, INC. SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2022 SECTION II ? FINANCIAL STATEMENT FINDINGS 2022-001 Account Reconciliations - Repeated (Prior Year Finding 2021-001 and 2020-001) Condition: Account reconciliations were not performed timely and/or did not agree to the general ledger when performed. Current policies and procedures do not provide for segregation of duties as the Business Manager is to post and reconcile transactions without any review process. 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: There was a lack of established internal controls and processes over the financial reporting and reconciliation process to ensure timely and accurate financial reporting. 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. Repeat: Yes ? Years as Repeat Finding: Two 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.
SECTION III ? AUDIT FINDINGS IN RELATION TO FEDERAL AWARDS 2022-002 Special Tests and Provisions Test Work ? Repeated (Prior Year Finding 2021-003) Funding agency: U.S. Department of the Interior 07/01/2021 06 /? 30/2022 A19AV00941 Titles: Indian School Equalization program Assistance Listing Number: (ISEP) 15.042 Award Year: 07/01/2021 06 /? 30/2022 Award number: A19AV00941 CONDITION: During our test work over special tests and provisions, we noted the oversight agency (Bureau of Indian Education) conducted an investigation and found the background checks were not performed properly. Criteria: The Indian Child Protection and Family Violence Prevention Act (25 USC 3201 et seq.) requires Indian tribes and tribal organizations that receive funds under the ISDEAA or the Tribally Controlled Schools Act to conduct an investigation of the character of each individual who is employed or is being considered for employment by such Indian tribe or tribal organization in a position that involves regular contact with, or control over, Indian children. The Act further states that the Indian tribe or tribal organization may employ individuals in those positions only if the individual meet standards of character, no less stringent than those prescribed under subpart B ? Minimum Standards of Character and Suitability for Employment (25 CFR part 63), as the Indian tribe or tribal organization establishes. Questioned Costs: Unknown Cause: The School policies were not followed or were not in place. Effect: The School is not in compliance with the special tests and provisions requirement. Repeat: Yes ? Years as Repeat Finding: One Auditor's Recommendation: We recommend that the School ensure that employees follow the policies and procedures that are in place along with the compliance requirements for the Indian School Equalization Program and ensure that that the compliance requirement is being followed. Views of Responsible Officials: The School agrees with this finding and has a plan in place to correct this.