Finding 1222970 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-07-06
Audit: 406467
Organization: Sicangu Oyate Ho, INC (SD)
Auditor: BLUEARROW CPA

AI Summary

  • Core Issue: The School failed to conduct required character investigations for 2 out of 10 employees working with children, violating the Indian Child Protection and Family Violence Prevention Act.
  • Impacted Requirements: Compliance with the Act mandates character investigations for all relevant employees, with re-investigations every five years.
  • Recommended Follow-Up: Implement a system to ensure timely character investigations and proper documentation to meet compliance standards.

Finding Text

2025-004 Special Tests and Provisions Compliance Requirement (Material Weakness) - Repeated and Modified (Prior Year Finding 2024-004) Federal Program Information: Funding Agency Title Federal Assistance Listing Number(s) Award Year and Number U.S. Department of Interior Indian School Equalization Program 15.042 2024; A24AV00744 U.S. Department of Interior Indian Schools Student Transportation 15.044 2024; A24AV00744 U.S. Department of Interior Administrative Cost Grants for Indian Schools 15.046 2024; A24AV00744 U.S. Department of Interior Indian Education Facilities, Operations, and Maintenance 15.047 2024; A24AV00744 U.S. Department of Education Title I Grants to Local Educational Agencies 84.010 2024; A24AV00744 U.S. Department of Education Special Education Grants to States 84.027 2024; A24AV00744 U.S. Department of Education Education Stabilization Fund 84.425 2024; A24AV00744 Criteria or Specific Requirement: In accordance with the Indian Child Protection and Family Violence Prevention Act, the School is required to conduct an investigation of the character of each individual who is employed or is being considered for employment by the School in a position that involves regular contact with or control over Indian children. The individual should be re-investigated every five years. The Act further states that the School may employ individuals in those positions only if the individuals meet standards of character no less stringent than those prescribed under subpart B – Minimum Standards of Character and Suitability for Employment (25 CFR part 63). Condition: The School was unable to locate records indicating character investigations had been performed for two out of ten employees in positions that involve regular contact with children. Cause: The School did not adhere to written policy regarding the storage of character investigation. Effect: The School is not in compliance with the Indian Child Protection and Family Violence Prevention Act requirements. Auditor's Recommendations: The School should ensure adequate character investigations are performed and documentation is maintained in a timely manner to achieve full compliance with the Indian Child Protection and Family Violence Prevention Act.

Corrective Action Plan

Management Response: Management acknowledges the audit finding related to Special Tests and Provisions requirements for Federal programs. We recognize the importance of adhering to all applicable federal regulations, grant requirements, and program-specific compliance standards. We have new HR Personnel who are committed to ensuring all files are up to date and all background checks have been completed for all personnel. As previously stated Personnel files were disassembled by previous Management and not replaced. Our HR Staff have worked diligently on an HR File Audit to ensure all documents are in place and that we are in compliance with the Indian Child Protection and Family Violence Prevention Act. Anticipated Completion Date: In process already for the current fiscal year (2026), Management anticipates full implementation by August 31, 2026. Management is monitoring progress and ensuring timely completion, we have four (4) Certified background screeners and adjudicators on staff aside from using an outside adjudicator to complete background checks and adjudication. Responsible Party: Business Manager, HR Director and staff.

Categories

Special Tests & Provisions Material Weakness

Other Findings in this Audit

  • 1222939 2025-001
    Material Weakness Repeat
  • 1222940 2025-002
    Material Weakness Repeat
  • 1222941 2025-003
    Material Weakness Repeat
  • 1222942 2025-004
    Material Weakness Repeat
  • 1222943 2025-001
    Material Weakness Repeat
  • 1222944 2025-002
    Material Weakness Repeat
  • 1222945 2025-003
    Material Weakness Repeat
  • 1222946 2025-004
    Material Weakness Repeat
  • 1222947 2025-001
    Material Weakness Repeat
  • 1222948 2025-002
    Material Weakness Repeat
  • 1222949 2025-003
    Material Weakness Repeat
  • 1222950 2025-004
    Material Weakness Repeat
  • 1222951 2025-001
    Material Weakness Repeat
  • 1222952 2025-002
    Material Weakness Repeat
  • 1222953 2025-003
    Material Weakness Repeat
  • 1222954 2025-004
    Material Weakness Repeat
  • 1222955 2025-001
    Material Weakness Repeat
  • 1222956 2025-002
    Material Weakness Repeat
  • 1222957 2025-003
    Material Weakness Repeat
  • 1222958 2025-004
    Material Weakness Repeat
  • 1222959 2025-001
    Material Weakness Repeat
  • 1222960 2025-002
    Material Weakness Repeat
  • 1222961 2025-003
    Material Weakness Repeat
  • 1222962 2025-004
    Material Weakness Repeat
  • 1222963 2025-001
    Material Weakness Repeat
  • 1222964 2025-002
    Material Weakness Repeat
  • 1222965 2025-003
    Material Weakness Repeat
  • 1222966 2025-004
    Material Weakness Repeat
  • 1222967 2025-001
    Material Weakness Repeat
  • 1222968 2025-002
    Material Weakness Repeat
  • 1222969 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
15.042 INDIAN SCHOOL EQUALIZATION $8.72M
15.046 ADMINISTRATIVE COST GRANTS FOR INDIAN SCHOOLS $2.08M
84.027 SPECIAL EDUCATION GRANTS TO STATES $1.98M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $1.40M
15.044 INDIAN SCHOOLS STUDENT TRANSPORTATION $1.11M
15.047 INDIAN EDUCATION FACILITIES, OPERATIONS, AND MAINTENANCE $842,526
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $738,008
15.043 INDIAN CHILD AND FAMILY EDUCATION $351,838
84.425 EDUCATION STABILIZATION FUND $308,006
10.555 NATIONAL SCHOOL LUNCH PROGRAM $268,350
15.151 EDUCATION ENHANCEMENTS $239,536
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $189,155
84.060 INDIAN EDUCATION GRANTS TO LOCAL EDUCATIONAL AGENCIES $126,311
10.553 SCHOOL BREAKFAST PROGRAM $90,218
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $65,321
15.130 INDIAN EDUCATION ASSISTANCE TO SCHOOLS $34,061
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $29,933
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $20,787
15.149 FOCUS ON STUDENT ACHIEVEMENT $18,959
16.170 COPS- SCHOOL VIOLENCE PREVENTION PROGRAM $13,856
15.062 REPLACEMENT AND REPAIR OF INDIAN SCHOOLS $6,120
84.358 RURAL EDUCATION $3,539
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $1,770
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $673
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $84