Finding Text
Finding Number: 2022-003 Repeat Finding: Yes, 2021-003 Program Name/Assistance Listing Title: Indian School Equalization Assistance Listing Number: 15.042 Federal Agency: U.S. Department of the Interior Federal Award Number: A19AV00937 Pass-Through Agency: Bureau of Indian Affairs Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting CRITERIA The School is required to file the Federal Financial Report, SF-425 to report program outlays and program income as prescribed by the Federal Awarding Agency. CONDITION Financial reporting obligations were not met during the year. CAUSE Adequate review systems were not in place for management to monitor compliance with these requirements and agree amounts reported to the general ledger. EFFECT The School was not always in compliance with federal regulations and guidelines. CONTEXT The sample was not intended to be, and was not, a statistically valid sample. During our review of the School's SF-425 reports, we noted the following: - The first quarter SF-425 report included cash receipts and disbursements from July 1, 2021 through October 28, 2021 as opposed to July 1, 2021 through September 30, 2021. - The third quarter SF-425 report included cash receipts and disbursements from July 1, 2021 through April 14, 2022 as opposed to July 1, 2021 through March 31, 2022. - The third quarter SF-425 federal cash receipts reported ($3,822,579) did not agree to financial support ($3,806,395) by $16,184. - The fourth quarter SF-425 report included $42,048 of non-federal revenues and $30,736 of non-federal disbursements related to quarters maintenance. RECOMMENDATION The School should implement review procedures to ensure the information reported on the Federal Financial Report, SF-425, is accurate and appropriate. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.