FAC Explorer

Finding 1205292 (2025-005)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396993
Organization: Belcourt Public School District #7 (ND)
Auditor: BRADY MARTZ

AI Summary

  • Core Issue: The District did not follow its own procurement policies or federal standards, failing to obtain required quotes for a purchase over $10,000.
  • Impacted Requirements: Non-compliance with procurement standards outlined in 2 CFR Part 200.317 through 200.327, which mandates documented procedures for federal awards.
  • Recommended Follow-Up: The District should review and strengthen internal controls to ensure adherence to procurement policies and compliance requirements.

Finding Text

Assistance Listing Number 84.181 Special Education Department of Education Passed Through Turtle Mountain Band of Chippewa Indians Procurement 2 CFR Part 200.317 through 200.327 Criteria Procurement Standards require for the District to maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. These documented procurement procedures must be consistent with State, local, and tribal laws and regulations and the standards identified in 2 CFR Part 200.317 through 200.327. Condition The District performed a procurement activity that did not follow District policies as well as standards found in 2 CFR Part 200.317 through 200.327. The District failed to obtain quotes or bids for a purchase exceeding $10,000. This condition was noted for the following expenditure: Check 240313 Dated 10/17/2024 for $10,219.00 Context Per discussion with the District staff and review of program expenditures, there were 2 expenditures incurred in which quotes or bids should have been obtained. Both transactions were tested and it was noted that 1 transaction did not have the necessary quotes or bids. Cause District’s internal controls in place failed to ensure all procurement policies are followed. Effect District is not in compliance with their internal procurement policies and procurement standards. Questioned Costs Undeterminable. Repeat Finding See prior year finding 2024-006 Recommendation Recommend the District to review internal controls to ensure all internal policies and compliance requirements are both being monitored and the District is remaining in compliance. Management’s Response See corrective action plan.

Corrective Action Plan

Contact Person: Duane Poitra, Business Manager Corrective Action Plan: To ensure compliance with applicable federal purchasing regulations, purchasing agents will be trained by business office staff on the micro-purchase threshold requirements in 2 CFR Part 200. Internal controls will be established for purchases over $10,000, competitive bidding, such as sealed bids, quotes, or competitive proposals, will be acquired by purchasing agents as required by the Uniform Guidance (2 CFR Part 200). The designated purchasing agent will follow these rules, and all federal funding purchases exceeding $10,000 will require approval from the Superintendent and Business Manager to ensure compliance. Anticipated Completion Date: Fiscal Year 2025-2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1205285 2025-003
    Material Weakness Repeat
  • 1205286 2025-003
    Material Weakness Repeat
  • 1205287 2025-003
    Material Weakness Repeat
  • 1205288 2025-004
    Material Weakness Repeat
  • 1205289 2025-004
    Material Weakness Repeat
  • 1205290 2025-004
    Material Weakness Repeat
  • 1205291 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.042 INDIAN SCHOOL EQUALIZATION $7.07M
84.027 SPECIAL EDUCATION GRANTS TO STATES $2.50M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.42M
15.046 ADMINISTRATIVE COST GRANTS FOR INDIAN SCHOOLS $1.01M
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $655,107
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $425,060
10.553 SCHOOL BREAKFAST PROGRAM $342,731
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $301,573
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $192,433
84.041 IMPACT AID $128,131
10.555 NATIONAL SCHOOL LUNCH PROGRAM $86,150
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $72,686
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $56,850
93.104 COMPREHENSIVE COMMUNITY MENTAL HEALTH SERVICES FOR CHILDREN WITH SERIOUS EMOTIONAL DISTURBANCES (SED) $55,481
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $49,267
84.358 RURAL EDUCATION $38,994
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $38,090
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $34,980
10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION $9,637
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $2,788
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $2,373
84.425 EDUCATION STABILIZATION FUND $1,963