Finding Text
CRITERIA A tribe, tribal organization, or consortia receiving advance payments under the ISDEAA or the Tribally Controlled Schools Act may invest advance payments (some recipients refer to these advanced payments as “deferred revenue”), before such funds are expended for the purposes of the grant, contract, or funding agreement, so long as such funds are (1) invested only in obligations of the United States or in obligations or securities that are guaranteed or insured by the United States, or mutual (or other) funds registered with the Securities and Exchange Commission (SEC) and which only invest in obligations of the United States or Securities that are guaranteed or insured by the United States or (2) deposited only in accounts that are insured by an agency or instrumentality of the United States CONDITION The Campus had investments of federal funds that were deemed unallowable. CAUSE The Campus did not have a process in place to ensure that investment types were allowable. EFFECT The Campus was not in compliance with Indian Self-Determination and the Education Assistance Act CONTEXT The Campus had investments of $540,574 that appear to be unallowable. RECOMMENDATION The Campus should ensure its financial investments are only invested in the obligations of the United States or mutual funds registered with the SEC and which only invest in obligations of the United States