Finding 1187259 (2025-003)

2025-003 – Non-Compliance with JOM Annual Report Submission (Significant Deficiency) Federal Program Information: Funding Agency: Department of Interior Title: Johnson O’Malley Assistance Listing: 15.130 Passthrough: Zuni Tribe Award Year: 2025 Criteria: Title 25 Chapter I Subchapter M Part 273 Subpart G Annual Reporting Requirements § 273.152 When is the annual report due? All existing contracting parties must submit the annual report to the BIE Director on or before September 15 of each year and covering the previous academic year. § 273.153 Who else needs a copy of the annual report? All existing contracting parties must send copies of the annual reports to the Indian Education Committee(s) and to the Tribe(s) under the contract at the same time as the reports are sent to the BIE Director. Condition: During our review of the reporting requirements, we identified the following issues:  The District did not meet submit its annual report. Questioned Costs: None Cause: Upon review, it was determined that the District has never filed the annual report for Johnson O’Malley to the Tribe. The previous director and the current director were unaware of this requirement and had never been contacted by the Tribe to file the annual report. Effect: The District is not in compliance with Federal requirements of their grant and could put future funding in jeopardy. Auditor’s Recommendation: We recommend the District establish a practice of ensuring all reports are submitted on time. We further recommend that the District review all of their grants to see if there are any other grants which require reports that are not being submitted. Responsible Official’s Plan:  Specific corrective action plan for finding: The Director of Federal Programs retired during the school year and the new Director was not aware of this report requirement. Additional training will be given regarding compliance with federal reporting requirements for the Johnson O’Malley Grant.  Timeline for completion of corrective action plan: January 15, 2026  Employee position(s) responsible for meeting the timeline: Director of Federal Programs