EIN: 816000120
UEI: WCDNKT2E5QX1
Audited by: Eide Bailly LLP
Oversight agency: 84 [Department of Education]
View federal awards & risk assessment →
Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 2, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 2, 2026 (3 days from today).
What is a management decision? →FAC accepted this audit on December 20, 2024 — management decision was due June 20, 2025.
In our testing of Activities Allowed or Unallowed/Allowable Costs, it was identified that the District had three instances where Federal grant dollars were expended for penalty assessments and interest charges to the Internal Revenue Service. During the year ended June 30, 2024, the District was made aware of apparent delinquent Form 941 submissions from fiscal year 2021, which resulted in penalty assessments and interest charges amounting to $253,747. These were paid using Impact Aid funds in fiscal year 2024, and with the assistance of legal counsel, the District was successful in fiscal year 2025 of having the entirety of the amount removed. The District was reimbursed the full amount of $253,747 in fiscal year 2025 and the funds were returned to the Impact Aid fund. Cause: The District’s procedures did not consistently ensure that unallowable costs were not being charged to the Federal grant. Effect: Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs: $253,747 Context/Sampling: A nonstatistical sample of 46 transactions out of 227 total transactions were selected for testing, which accounted for $500,121 of $1,450,045 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴Department of Education, Passed through the State of Montana Office of Public Instruction Federal Financial Assistance Listing No. 84.041 Impact Aid Activities Allowed or Unallowed/Allowable Costs Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with law, regulations, and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. 2 CFR 200.441 Fines, penalties, damages, and other settlements states that costs resulting from recipient or subrecipient violations of, alleged violations of, or failure to comply with, Federal, State, local, tribal, or foreign laws and regulations are unallowable, except when incurred as a result of compliance with specific provisions of the Federal award, or with prior written approval of the Federal agency. Condition: In our testing of Activities Allowed or Unallowed/Allowable Costs, it was identified that the District had three instances where Federal grant dollars were expended for penalty assessments and interest charges to the Internal Revenue Service. During the year ended June 30, 2024, the District was made aware of apparent delinquent Form 941 submissions from fiscal year 2021, which resulted in penalty assessments and interest charges amounting to $253,747. These were paid using Impact Aid funds in fiscal year 2024, and with the assistance of legal counsel, the District was successful in fiscal year 2025 of having the entirety of the amount removed. The District was reimbursed the full amount of $253,747 in fiscal year 2025 and the funds were returned to the Impact Aid fund. Cause: The District’s procedures did not consistently ensure that unallowable costs were not being charged to the Federal grant. Effect: Lack of compliance to federal requirements increases the overall risk of non-compliance. Questioned Costs: $253,747 Context/Sampling: A nonstatistical sample of 46 transactions out of 227 total transactions were selected for testing, which accounted for $500,121 of $1,450,045 of federal program expenditures. Repeat Finding from Prior Year: No Recommendation: We recommend that management establish controls to follow all applicable requirements under Uniform Guidance and applicable CFR sections. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2024-005 Federal Agency Name: Department of Education Pass-Through Entity: State of Montana Office of Public Instruction Assistance Listing Number: 84.041 Program Name: Impact Aid Finding Summary: During the testing of Activities Allowed or Unallowed/Allowable Costs, it was identified that the District had three instances where Federal grant dollars were expended for penalty assessments and interest charges to the Internal Revenue Service. During the year ended June 30, 2024, the District was made aware of apparent delinquent Form 941 submissions from fiscal year 2021, which resulted in penalty assessments and interest charges amounting to $253,747. These were paid using Impact Aid funds in fiscal year 2024, and with the assistance of legal counsel, the District was successful in fiscal year 2025 of having the entirety of the amount removed. The District was reimbursed the full amount of $253,747 in fiscal year 2025 and the funds were returned to the Impact Aid fund. Corrective Action Plan: The District proactively identified and self-reported this issue. The penalty assessments were paid promptly to mitigate escalating interest charges while the case was under review. Despite challenges in communication with the IRS and significant delays, the District acknowledges that using Federal grant funds to pay penalty assessments was an error. To ensure this does not occur in the future, the District has reviewed and reinforced its compliance with applicable regulations, including the Code of Federal Regulations (CFR). Training and oversight mechanisms are being enhanced to prevent similar issues. Responsible Individual: Brian Patrick, Director of Business Operations Anticipated Completion Date: June 30, 2025
FAC accepted this audit on March 11, 2024 — management decision was due September 11, 2024.
FAC accepted this audit on December 29, 2022 — management decision was due June 29, 2023.
FAC accepted this audit on February 10, 2022 — management decision was due August 10, 2022.
FAC accepted this audit on December 27, 2020 — management decision was due June 27, 2021.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on January 8, 2019 — management decision was due July 8, 2019.
FAC accepted this audit on January 11, 2018 — management decision was due July 11, 2018.
FAC accepted this audit on January 15, 2017 — management decision was due July 15, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Browse other Single Audit organizations in Montana →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and filing records.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.
