FAC Explorer

Finding 1118413 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 350766
Organization: United Tribes Technical College (ND)
Auditor: Brady Martz & Associates PC

AI Summary

  • Core Issue: The College failed to establish a required debt service reserve fund for the USDA loan.
  • Impacted Requirements: This non-compliance with the loan agreement could lead to financial penalties or issues with future funding.
  • Recommended Follow-Up: Ensure the debt reserve fund is maintained as per the agreement and monitor compliance moving forward.

Finding Text

Federal Awards 10.766 – Community Facilities Loans and Grants Condition The loan agreement with the USDA requires a debt service reserve fund equal to at least 10% of one annual loan installment that accumulates at the rate of 10% of one annual payment per year for ten years or until the balance is equal to one annual loan payment. Criteria: During our audit, we noted the College did not set up a debt reserve fund. Cause: The College did not set up a debt reserve fund for the USDA loan. Effect: The College was not in compliance with the loan agreement. Recommendation: We recommend the College set up a debt reserve fund in accordance with the loan agreement. Views of Responsible Officials and Planned Corrective Actions Account has been created and payment has been made.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 541971 2024-002
    Significant Deficiency
  • 541972 2024-003
    Significant Deficiency
  • 541973 2024-004
    Significant Deficiency
  • 1118414 2024-003
    Significant Deficiency
  • 1118415 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
15.060 Indian Vocational Training United Tribes Technical College $5.97M
84.245 Tribally Controlled Postsecondary Career and Technical Institutions $4.26M
84.063 Federal Pell Grant Program $2.70M
10.766 Community Facilities Loans and Grants $1.34M
15.042 Indian School Equalization $1.30M
47.076 Stem Education (formerly Education and Human Resources) $1.28M
84.031 Higher Education Institutional Aid $985,616
93.441 Indian Self-Determination $622,321
81.049 Office of Science Financial Assistance Program $576,878
84.425 Education Stabilization Fund $423,033
15.046 Administrative Cost Grants for Indian Schools $357,440
10.517 Tribal Colleges Extension Programs $334,333
84.010 Title I Grants to Local Educational Agencies $309,648
15.043 Indian Child and Family Education $280,733
10.222 Tribal Colleges Endowment Program $255,119
84.027 Special Education Grants to States $233,470
10.221 Tribal Colleges Education Equity Grants $232,743
15.114 Indian Education Higher Education Grant $170,826
17.265 Native American Employment and Training $136,676
10.227 1994 Institutions Research Grants $136,615
15.047 Indian Education Facilities, Operations, and Maintenance $112,816
15.933 Preservation of Japanese American Confinement Sites $110,737
84.116 Fund for the Improvement of Postsecondary Education $97,088
47.074 Biological Sciences $75,186
10.229 Extension Collaborative on Immunization Teaching & Engagement $65,694
84.007 Federal Supplemental Educational Opportunity Grants $64,181
10.001 Agricultural Research Basic and Applied Research $54,045
84.299 Indian Education -- Special Programs for Indian Children $47,799
47.070 Computer and Information Science and Engineering $40,964
84.033 Federal Work-Study Program $40,457
15.044 Indian Schools Student Transportation $38,330
10.527 New Beginning for Tribal Students $26,515
10.500 Cooperative Extension Service $25,086
84.336 Teacher Quality Partnership Grants $23,026
84.424 Student Support and Academic Enrichment Program $18,657
93.859 Biomedical Research and Research Training $18,569
84.358 Rural Education $13,696
47.083 Integrative Activities $749
43.008 Office of Stem Engagement (ostem) $500
15.151 Education Enhancements $496