Finding 1204955 (2025-001)

Findings and Questioned Costs Related to Federal Awards Finding Number: 2025‐001 Repeat Finding: Yes, 2024‐002 Program Name/Assistance Listing Title: Indian School Equalization Program Assistance Listing Number: 15.042 Federal Agency: U.S Department of Interior Federal Award Number: A24AV00758 Pass‐Through Agency: Bureau of Indian Education Questioned Costs: $2,279 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles Criteria According to Uniform Guidance 2 CFR 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition Employees were not always paid in accordance with contracts. Cause The School lacked adequate internal controls over payroll. The School's process did not include a review of that payroll data entered into the system and did not include a review of the payroll register before the pay was processed. Effect The School’s internal controls over payroll were not adequate to ensure employees are paid in accordance with their contracts. Context For two of 40 employees reviewed, employees were not paid in accordance with their approved contracts resulting in a net overpayment of $1,811. One employee was overpaid $2,279, and the second employee was underpaid $468. Recommendation The School should implement review procedures and controls to ensure employees are paid in accordance with their contracts. Views of Responsible Officials See Corrective Action Plan.