Finding Text
Finding Number: 2024-001
Repeat Finding: Yes, 2023-001
Program Names/Assistance Listing Titles:
Assistance
Listing
Numbers:
Federal Award
Numbers:
Questioned
Costs:
Indian School Equalization 15.042 A23AV00840 N/A
Indian Education Facilities, Operations
and Maintenance 15.047 A23AV00840 N/A
Federal Agency: U.S. Department of the Interior
Pass-Through Agency: Bureau of Indian Affairs
Type of Finding: Significant Deficiency
Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Criteria
School management is responsible for establishing and maintaining internal controls over 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 self-determination 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:
• For two out five cutoff transactions reviewed, determined the transaction should have been
paid in fiscal year 2024.
• For one of 40 disbursements reviewed, the expenditure exceeded the authorized PO amount.
• For three of 40 disbursements reviewed, the disbursement was not coded in accordance with
the School's Chart of Accounts. For two of 40 disbursements reviewed, the purchase order was issued after the purchase of
goods/services.
The School did not pay credit card statements timely, resulting in finance charges of $2,801 and
late fees of $75.
Recommendation
School policies and procedures should be followed to ensure disbursements are properly processed
and documented.
Views Of Responsible Officials
See Corrective Action Plan.