What GAO found
The Bureau of Indian Education (BIE) and its schools have utilized federal coronavirus relief funds primarily to support distance learning and prevent the spread of COVID-19 in schools. For example, BIE spent nearly $60 million of its coronavirus funding on IT and broadband support for schools, including student laptops and Wi-Fi equipment for distance learning. Similarly, nearly all of the 70 BIE schools that responded to GAO's survey reported prioritizing COVID-19 funds for laptops and tablets, personal protective equipment, cleaning supplies, and COVID-19 testing. . Schools generally reported that BIE was providing regular guidance and support regarding the disbursement of COVID-19 funds.
The BIE has undertaken several tasks to monitor schools' coronavirus spending, including reviewing schools' single audit reports, supervising schools at high risk of financial mismanagement, and monitoring schools' purchasing cards for fraud and abuse. process. However, GAO found that due to poor controls, BIE staff did not consistently follow these processes, which limited accountability for the use of coronavirus funds. For example, just over a quarter of the 2021 single audit reports required of schools and tribes receiving BIE grants are late or not submitted as of November 2023. However, BIE did not follow the agency's standard procedures for applying fiscal conditions or increasing amounts. That year, 19 of his 28 grant recipients did not submit a single audit report in a timely manner. Without a single, timely audit report, BIE lacks critical information to oversee schools' financial management. Additionally, the BIE did not adequately oversee COVID-19 spending in high-risk schools and lacked the staff capacity to complete all necessary oversight. Such monitoring is important so that schools can correct mistakes and avoid them in the future. Finally, GAO found that for BIE-operated schools, nearly half of purchase card coronavirus fund disbursements from March 2020 to August 2022 involved high-risk transactions, according to agency data. (See figure). Examples of high-risk transactions include purchasing gift cards or making multiple purchases with the same merchant within a certain number of days, the sum of which exceeds his single purchase limit. However, BIE provided no evidence that it investigated these transactions for fraud or abuse.
Coronavirus Fund Disbursements through Indian Education Department School Purchasing Cards, March 2020 to August 2022
Additionally, GAO found that BIE staff did not consistently use the tools and procedures necessary to track and investigate suspicious transactions. Without addressing these gaps in oversight of schools' COVID-19 spending, BIE cannot ensure that schools use remaining COVID-19 funds appropriately to provide students with the support they need.
Why GAO conducted this study
Many of BIE’s 183 schools are located on remote tribal lands that have faced extraordinary challenges and continue to experience ongoing impacts during the COVID-19 pandemic. Congress has appropriated approximately $1.5 billion to help BIE and its schools respond to the pandemic. GAO reviewed schools' and BIE's use of COVID-19 relief funds as part of GAO's responsibilities under the CARES Act.
The report examines how the BIE and schools have used coronavirus funds, the BIE's guidance to schools on the use of the funds, and the extent to which the BIE has oversight of schools' use of the funds. GAO surveyed a generalizable sample of BIE's 85 schools, with 70 responding, collecting information on the use of coronavirus funds and the extent to which BIE provided guidance on spending. GAO also analyzed agency data on purchase card activity at BIE schools. Reviewed relevant federal statutes, regulations, and agency policies and procedures for overseeing schools' COVID-19 spending. We then interviewed BIE and school officials.