Finding 10704 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-30
Audit: 14431
Organization: Kinteel Residential Campus INC (NM)

AI Summary

  • Core Issue: Advance payments under ISDEAA or the Tribally Controlled Schools Act can be invested, but only in specific, secure options.
  • Impacted Requirements: Schools must conduct character investigations for employees working with Indian children, with reinvestigations every five years.
  • Recommended Follow-Up: Ensure compliance with investment guidelines and verify that character investigations meet the required standards.

Finding Text

A tribe, tribal organization, or consortia receiving advance payments under the ISDEAA or the Tribally Controlled Schools Act may invest advance payments (some recipients refer to these advanced payments as “deferred revenue”), before such funds are expended for the purposes of the grant, contract, or funding agreement, so long as such funds are (1) invested only in obligations of the United States or in obligations or securities that are guaranteed or insured by the United States, or mutual (or other) funds registered with the Securities and Exchange Commission (SEC) and which only invest in obligations of the United States or Securities that are guaranteed or insured by the United States or (2) deposited only in accounts that are insured by an agency or instrumentality of the United States. According to the Indian Child Protection and Family Violence Protection Act (25 USC 3201 etc. Sec.), the School must conduct a character investigation of each individual who is employed or is being considered for employment in a position that involves regular contact with, or control over Indian children. The investigation should be reinvestigated every five years. The Act further states that the Schools may employ individuals in those positions only if the individuals meet standards of character, no less stringent thatn those prescribed under subpart B – Minimum Standards of Character and Suitability for Employment (25 CFR part 63).

Categories

Cash Management

Other Findings in this Audit

  • 10700 2023-001
    Material Weakness Repeat
  • 10701 2023-002
    Material Weakness Repeat
  • 10702 2023-003
    Material Weakness Repeat
  • 10703 2023-004
    Material Weakness Repeat
  • 10705 2023-002
    Material Weakness Repeat
  • 10706 2023-003
    Material Weakness Repeat
  • 10707 2023-004
    Material Weakness Repeat
  • 587142 2023-001
    Material Weakness Repeat
  • 587143 2023-002
    Material Weakness Repeat
  • 587144 2023-003
    Material Weakness Repeat
  • 587145 2023-004
    Material Weakness Repeat
  • 587146 2023-001
    Material Weakness Repeat
  • 587147 2023-002
    Material Weakness Repeat
  • 587148 2023-003
    Material Weakness Repeat
  • 587149 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $1.55M
15.042 Indian School Equalization Program $1.38M
15.046 Administrative Cost Grants for Indian Schools $372,044
15.047 Indian Education Facilities, Operations, and Maintenance $135,222
15.044 Indian Schools_student Transportation $18,426