Finding 1180754 (2025-002)

2025–002 — Procurement – Significant Deficiency in Internal Controls Over Compliance and Noncompliance Federal program information: Funding agency: U.S. Department of the Interior Titles: Indian School Equalization Administrative Cost Grant for Indian Schools ALN numbers: 15.042 and 15.046 Award year and number: Various Criteria: In accordance with 2 CFR 200.319, documentation should be retained to justify and “sole source” purchases. Condition: For two of three procurements tested for Indian School Equalization, and one of two procurements tested for Administrative Cost Grant for Indian Schools, the School did not have supporting documentation to justify sole source purchases. Questioned Costs: None. Cause: The School did not follow policies and procedures which require documentation of justification of sole source purchases. Effect: The School was out of compliance with grant requirements. Auditor’s Recommendations: To ensure compliance with Uniform Guidance requirements, the School should document and retain justification for any sole source purchases. Management’s Response: The School has hired a new Business Manager who has the experience and training to ensure all sole source vendors are prior-approved before utilizing them during the school year.