Finding Text
Finding Number: 2023‐003
Repeat Finding: Yes, 2022‐003
Program Name/Assistance Listing Title: Indian School Equalization
Assistance Listing Number: 15.042
Federal Agency: U.S. Department of the Interior
Federal Award Number: A22AV00856
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
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, 2022,
through October 22, 2022, as opposed to July 1, 2022, through September 30, 2022.
- The second quarter SF‐425 report included cash receipts and disbursements from July 1, 2022,
through January 27, 2023, as opposed to July 1, 2022, through December 31, 2022.
The sample was not intended to be, and was not, a statistically valid sample.
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.