Finding Text
Findings and Questioned Costs Related to Federal Awards
Finding Number: 2023‐001
Repeat Finding: No
Program Names/Assistance Listing Titles:
Assistance
Listing
Numbers:
Federal Award
Numbers:
Questioned
Costs:
Indian School Equalization 15.042 A22AV00871 $2,420
Administrative Cost Grants for Indian Schools 15.046 A22AV00871 $997
Indian Education Facilities, Operations
and Maintenance 15.047 A22AV00871 N/A
Federal Agency: U.S. Department of the Interior
Pass‐Through Agency: Bureau of Indian Affairs
Type of Finding: Material Weakness, Noncompliance
Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Criteria
School management is responsible for establishing and maintaining internal controls over travel
reimbursements, credit card transactions, and disbursements that are adequate to ensure that all
financial activities are properly processed and recorded. Further, Indian tribes and tribal
organizations, may without the approval of the BIA, expend funds provided under a selfdetermination
contract for purposes identified in 25 USC 5325, to the extent that the expenditure of
the funds is supportive of a contracted program (25 USC 5325). These guidelines require internal
controls over expenditures of federal monies to ensure expenditures comply with federal regulations
and guidelines. (25 CFR 39; 25 CFR 900.)
Condition
Internal controls over accounting of disbursements were not followed.
Cause
Internal controls in place did not always operate effectively, or were not followed.
Effect
Financial activities relating to disbursements were not properly processed and documented.
Context
The sample was not intended to be, and was not, a statistically valid sample.
During our review of disbursements, we noted the following:
The School did not pay credit card statements timely, resulting in finance charges of $4,474.
For four of 51 disbursements reviewed, the purchase order was issued after the purchase of
goods/services.
For four of 51 disbursements reviewed, the disbursement was not coded in accordance with
the School’s chart of accounts.
For one of 51 disbursements reviewed, the goods were not received prior to payment.
For one of five travel reimbursements reviewed, the School did not reimburse the expense
using the correct rate, resulting in an overpayment of $20.
For one of 51 disbursements reviewed, there was no invoice or proof of purchase.
Board members who no longer served on the Board as of January 2023 were paid per diem
and stipends for board meetings through June 2023.
As a result of over expending grant revenues and carryover, $104,872 of Administrative Cost
Grants for Indian School and $44,534 of Indian Education Facilities, Operation and
Maintenance expenditures could not be reported on the Schedule of Expenditures of Federal
Awards.
Recommendation
School policies and procedures should be followed to ensure disbursements are properly processed
and documented.
Views of Responsible Officials
See Corrective Action Plan.