Finding 51317 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 50207
Organization: Leupp Schools, Inc. (AZ)

AI Summary

  • Core Issue: The School failed to meet its financial reporting obligations, specifically the SF-425 Quarterly Financial Statements.
  • Impacted Requirements: Noncompliance with federal regulations could lead to reduced or discontinued program awards.
  • Recommended Follow-Up: The School should establish standard procedures to ensure accurate and timely report submissions.

Finding Text

Finding Number: 2022-001 Repeat Finding: Yes, 2021-002 Program Names/Assistance Listing Titles: Indian School Equalization; Indian Education Facilities, Operations, and Maintenance Assistance Listing Numbers: 15.042; 15.047 Federal Award Numbers: A19AV00865 Questioned Costs: N/A Federal Agency: U.S. Department of the Interior Pass-Through Agency: Bureau of Indian Affairs Type of Finding: Noncompliance, Significant Deficiency Compliance Requirements: Reporting CRITERIA Per the grant agreement, the School is required to file SF-425 Quarterly Financial Statements (2 CFR Subpart D ?200.327). Furthermore, the reports should agree to the School?s supporting documentation for federal revenues. CONDITION The School did not meet its financial reporting obligations during the year. CAUSE The School did not have an adequate system in place to maintain compliance with these requirements EFFECT The School was not always in compliance with federal regulations and guidelines. Less than full compliance with these reporting requirements could potentially result in a reduction or discontinuation of program awards in the future. CONTEXT During our review of the School?s SF-425 reports, we noted the following: - The first quarter SF-425 report included $9,491 of non-federal revenues and $67 of nonfederal disbursements. - The second and third quarter SF-425 reports included $980 of non-federal revenues and $67 of non-federal disbursements. - The fourth quarter SF-425 report included $1,491 of non-federal revenues and $67 of non-federal disbursements. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The School should implement standard procedures to ensure submission of accurate reports. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Corrective Action Plan

Finding Number: 2022-001, 2021-002, 2020-002, 2019-007 Program Name/Assistance Listing Titles: Indian School Equalization; Indian Education Facilities, Operations, and Maintenance Assistance Listing Numbers: 15.042, 15.047 Contact Person: Lolita Paddock, Principal Anticipated Completion Date: June 30, 2023 Planned Corrective Action: The School has a policy to follow the minimum general standard accounting procedures to ensure submission of accurate reports. The school administration consisting of the business manager or business services consultant will submit SF-425 reports accurately, ensuring not to include the reporting of non-federal revenues and non-federal disbursements in each quarter of reporting to the federal government.

Categories

Reporting Matching / Level of Effort / Earmarking Significant Deficiency

Other Findings in this Audit

  • 51318 2022-001
    Significant Deficiency Repeat
  • 627759 2022-001
    Significant Deficiency Repeat
  • 627760 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
15.042 Indian School Equalization $1.36M
15.047 Indian Education Facilities, Operations, and Maintenance $1.05M
15.046 Administrative Cost Grants for Indian Schools $533,777
15.043 Indian Child and Family Education $267,368
84.027 Special Education_grants to States $260,306
15.044 Indian Schools_student Transportation $230,381
84.010 Title I Grants to Local Educational Agencies $192,778
84.425 Covid-19 Education Stabilization Fund $149,072
10.555 National School Lunch Program $79,425
10.553 School Breakfast Program $45,028
84.377 School Improvement Grants $37,152
84.060 Indian Education_grants to Local Educational Agencies $29,030
84.336 Teacher Quality Partnership Grants $23,127
10.555 Covid-19 National School Lunch Program $8,242