Finding 389905 (2023-001)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300789
Organization: Wide Ruins Community School (AZ)

AI Summary

  • Core Issue: Internal controls over disbursements were not effectively followed, leading to improper financial processing.
  • Impacted Requirements: Compliance with federal guidelines on allowable costs and financial documentation was not met, resulting in questioned costs totaling $3,417.
  • Recommended Follow-Up: Implement and adhere to school policies to ensure all disbursements are processed correctly and documented appropriately.

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.

Categories

Allowable Costs / Cost Principles Procurement, Suspension & Debarment Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 389897 2023-001
    Material Weakness
  • 389898 2023-002
    Significant Deficiency
  • 389899 2023-003
    Significant Deficiency
  • 389900 2023-001
    Material Weakness
  • 389901 2023-002
    Significant Deficiency
  • 389902 2023-003
    Significant Deficiency
  • 389903 2023-002
    Significant Deficiency
  • 389904 2023-001
    Material Weakness
  • 966339 2023-001
    Material Weakness
  • 966340 2023-002
    Significant Deficiency
  • 966341 2023-003
    Significant Deficiency
  • 966342 2023-001
    Material Weakness
  • 966343 2023-002
    Significant Deficiency
  • 966344 2023-003
    Significant Deficiency
  • 966345 2023-002
    Significant Deficiency
  • 966346 2023-001
    Material Weakness
  • 966347 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
15.042 Indian School Equalization Program $1.64M
15.047 Indian Education Facilities, Operations, and Maintenance $915,601
15.044 Indian Schools_student Transportation $753,745
15.046 Administrative Cost Grants for Indian Schools $545,530
15.043 Indian Child and Family Education $389,655
84.010 Title I Grants to Local Educational Agencies $372,714
15.042 Covid-19 Indian School Equalization Program $254,949
84.425 Covid-19 Education Stabilization Fund $86,637
84.027 Special Education_grants to States $86,128
32.009 Covid-19 Emergency Connectivity Fund Program $46,200
10.559 Summer Food Service Program for Children $46,162
84.424 Student Support and Academic Enrichment Program $42,765
15.151 Education Program Enhancements $38,624
10.553 School Breakfast Program $27,251
84.336 Teacher Quality Partnership Grants $24,600
10.555 Covid-19 National School Lunch Program $19,193
93.421 Covid-19 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $14,976
10.555 National School Lunch Program $7,002
84.358 Rural Education $3,808