Finding Text
2022-007 Internal Controls and Compliance over Reporting (Significant Deficiency) - Repeated &
Modified (Prior Year Finding 2021-007)
Federal Program Information:
Funding Agency Title ALN # Award Year and Number
U.S. Department of Interior Indian School Equalization Program 15.042 2021 AI9AV00859
U.S. Department of
Education
Indian Education Facilities,
Operations, and Maintenance
Program
15.047 2022 AI9AV00859
Criteria or Specific Requirement
The School is required to report cumulative program outlays and program income on the Federal
Financial Report, SF-425 (7 CFR § 2500.046). Quarterly reports are required to be submitted no later
than 30 days after the end of each reporting period.
In accordance with 2 CFR 200.512, the Single Audit must be completed, and the data collection form
and reporting package must be submitted within the earlier of 30 calendar days after receipt of the
auditor’s report(s) or nine months after the end of the audit period.
Condition
The School did not submit their required Federal Financial Reports (SF-425) for the quarters ending on
September 30, 2021, December 31, 2021, and June 30, 2022 of the program year. All four quarters of
SF-425s were not reconciled to the general ledger. In addition, the audit was not completed by the
deadline.
Cause
The School did not have adequate monitoring over the completion and submission of required reports.
School policies were not always followed, or controls were not in place to ensure complete and accurate
information could be provided timely.
Effect
The School was not in compliance with federal regulations and guidelines for SF-425 and single audit
submissions.
Auditor's Recommendation
We recommend that the School's personnel obtain appropriate training from a consultant to be able to
prepare the SF-425 reports accurately. Additionally, we recommend that the School establish and
implement policies and procedures to create, approve, submit, and retain all required reports in a timely
manner.