Finding 1164736 (2025-002)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-13

AI Summary

  • Core Issue: The School's vendor could not confirm compliance with the Build America Buy America Act for construction materials.
  • Impacted Requirements: Federal funds for infrastructure projects must use materials produced in the U.S. as per 2CFR 184.1(b).
  • Recommended Follow-Up: The School should ask vendors about their policies on sourcing materials to ensure compliance with BABAA.

Finding Text

Finding 2025-002, Significant deficiency Identification of federal program: US DEPARTMENT OF EDUCATION passed through the Indiana Department of Education Chater School Facilities Incentive Grant 84.282D Criteria: According to 2CFR 184.1(b), funds are not to be made available for an infrastructure project unless all of the iron, steel, manufactured products, and construction materials incorporated into the project are produced in the United States. Condition: The School’s construction vendor was unable to confirm that the stipulations of Build America Buy America Act (BABAA) were followed. Cause: The School’s did not obtain nor inquire on the vendor’s policy on sourcing materials used for infrastructure construction. Potential effect: The materials may not have been sourced properly under the grant requirements. Questioned costs: None. Context: A total sample of one (1) of two (2) construction projects begun during the fiscal year were unable to confirm that BABAA was followed. Recommendation: We recommend that the School inquire of vendors on their compliance with BABAA. Views of Responsible Officials: See attached Corrective Action Plan.

Corrective Action Plan

Criteria: According to 2CFR 184.l(b), funds are not to be made available for an infrastructure project unless all of the iron, steel, manufactured products, and construction materials incorporated into the project are produced in the United States. Condition: The school's construction vendor was unable to confirm that the stipulations of Build America Buy America Act (BABAA) were followed. Cause: The School did not obtain nor inquire on the vendor's policy on sourcing materials used for the infrastructure construction. Potential Effect: The materials may not have been sourced properly under the grant requirements. Recommendation: We recommend that the School inquire of vendors on their compliance with BABAA. Action Taken: As of the date of the exit conference, we will institute an inquiry of the potential vendor as their compliance with BABAA.

Categories

Significant Deficiency

Other Findings in this Audit

  • 1164733 2025-001
    Material Weakness Repeat
  • 1164734 2025-001
    Material Weakness Repeat
  • 1164735 2025-001
    Material Weakness Repeat
  • 1164737 2025-003
    Material Weakness Repeat
  • 1164738 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.282 CHARTER SCHOOLS $395,138
10.555 NATIONAL SCHOOL LUNCH PROGRAM $333,391
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $197,874
10.553 SCHOOL BREAKFAST PROGRAM $144,734
84.027 SPECIAL EDUCATION GRANTS TO STATES $132,425
84.425 EDUCATION STABILIZATION FUND $86,596
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $45,946
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $19,493
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $1,933