Finding Text
2024-004 – AL 15.042: Indian School Equalization & AL 84.010: Title I – Activities Allowed
or Unallowed – Significant Deficiency
Criteria
The expenditure of funds is restricted to those federal programs covered by the grant. The
Tribally Controlled Schools Act provides for the expenditure of funds by Indian tribes and tribal
organizations under grants for education-related programs and activities, including school
operations, academic, educational, residential, guidance and counseling, and administrative
purposes, and support services for the school, including transportation and maintenance and
repair costs (25 USC 2502).
Condition
Unallowable costs were identified and charged to ISEP and Title I grant funds.
Cause
Purchases of washers, dryers, air fryers, and other household items described as ‘Parent night
door prizes’ and ‘door prizes’ were made and were funded by federal funds.
Effect
Unallowable costs may have been charged to the grant.
Questioned Costs
AL 84.010: $ 367
AL 15.042: $1,095
Repeat Finding
This is a new finding in the current year.
Recommendation
Any door prizes or incentives for parents should be funded through general fund revenues.
View of Responsible Officials and Planned Corrective Actions
Management recommends the school purchasers and purchasing supervisors use IRS De
Minimus standards for all gifts, including door prizes. Management also recommends school
personnel get proper approval before making any purchases with school funding.