FAC Explorer

Finding 37703 (2022-102)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-08-22
Audit: 29644
Organization: Hotevilla Bacavi Community School (AZ)
Auditor: Walker & Armstrong LLP

AI Summary

  • Core Issue: The School provided employee stipends for recruiting and retention without proper documentation to justify the amounts paid.
  • Impacted Requirements: Stipends did not meet the standards set by 2 CFR ?200.430, which requires compensation to be reasonable and supported by employee activity.
  • Recommended Follow-Up: Establish a written policy for stipends that aligns with industry standards and ensures proper documentation is maintained.

Finding Text

Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Criteria, Cause and Effect: According to 2 CFR ?200.430, Compensation ? personal services, compensation must be ?reasonable for the services rendered? and be ?supported by the total activity for which the employee is providing services.? The cause is due to a lack of understanding of the required support for personal compensation as required by 2 CFR ?200.430. The effect is insufficient support for employee stipends. Recommendation: We recommend that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.

Corrective Action Plan

Finding 2022-102 ? Improve Controls over Allowable Costs (Material Weakness) FAL Numbers: 15.042 Program Titles: Indian School Equalization COVID-19 Indian School Equalization Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Recommendation: The auditors recommended that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Contact Name: Renee Ramirez, Business Manager Corrective Action Planned: HBCS will develop, in conjunction with the Governing School Board, a recruitment and retention policy that is reasonable and comparable to other schools on Hopi. Anticipated Completion Date: June 30, 2023

Categories

No categories assigned yet.

Other Findings in this Audit

  • 37702 2022-101
    Material Weakness Repeat
  • 37704 2022-103
    Significant Deficiency Repeat
  • 37705 2022-101
    Material Weakness Repeat
  • 37706 2022-102
    Material Weakness
  • 37707 2022-103
    Significant Deficiency Repeat
  • 614144 2022-101
    Material Weakness Repeat
  • 614145 2022-102
    Material Weakness
  • 614146 2022-103
    Significant Deficiency Repeat
  • 614147 2022-101
    Material Weakness Repeat
  • 614148 2022-102
    Material Weakness
  • 614149 2022-103
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
15.042 Indian School Equalization Program $511,531
15.046 Administrative Cost Grants for Indian Schools $453,358
84.010 Title I Grants to Local Educational Agencies $374,600
84.425 Education Stabilization Fund $303,089
15.047 Indian Education Facilities, Operations, and Maintenance $247,686
84.287 Twenty-First Century Community Learning Centers $152,693
15.044 Indian Schools_student Transportation $128,086
10.555 National School Lunch Program $58,615
84.358 Rural Education $35,900
10.553 School Breakfast Program $35,461
15.151 Education Program Enhancements $30,024
15.149 Focus on Student Achievement Project $15,870
84.424 Student Support and Academic Enrichment Program $10,125
84.336 Teacher Quality Partnership Grants $1,800