25 CFR 39 Subpart D Accountability (cont)

§ 39.407

25 CFR Ch. I (4–1–07 Edition)

§ 39.407 How long must a school maintain records?
The responsible administrative official for each school must maintain
records relating to ISEP, supplemental
services, and transportation-related expenditures. The official must maintain
these records in appropriate retrievable storage for at least the four years
prior to the current school year, unless
Federal records retention schedules require a longer period.
§ 39.408 What are the responsibilities
of administrative officials?
Administrative officials have the following responsibilities:
(a) Applying the appropriate standards in this part for classifying and
counting ISEP eligible Indian students
at the school for formula funding purposes;
(b) Accounting for and reporting student transportation expenditures;
(c) Providing training and supervision to ensure that appropriate
standards are adhered to in counting
students and accounting for student
transportation expenditures;
(d) Submitting all reports and data
on a timely basis; and
(e) Taking appropriate disciplinary
action for failure to comply with requirements of this part.

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§ 39.409 How does the OIEP Director
ensure accountability?
(a) The Director of OIEP must ensure
accountability in student counts and
student transportation by doing all of
the following:
(1) Conducting annual independent
and random field audits of the processes and reports of at least one school
per OIEP line office to ascertain the
accuracy of Bureau line officers’ reviews;
(2) Hearing and making decisions on
appeals from school officials;
(3) Reviewing reports to ensure that
standards and policies are applied consistently, education line officers treat
schools fairly and equitably, and the
Bureau takes appropriate administrative action for failure to follow this
part; and
(4) Reporting the results of the findings and determinations under this sec-

tion to the appropriate tribal governing body.
(b) The purpose of the audit required
by paragraph (a)(1) of this section is to
ensure that the procedures outlined in
these regulations are implemented. To
conduct the audit required by paragraph (a)(1) of this section, OIEP will
select an independent audit firm that
will:
(1) Select a statistically valid audit
sample of recent student counts and
student transportation reports; and
(2) Analyze these reports to determine adherence to the requirements of
this part and accuracy in reporting.
§ 39.410 What qualifications must an
audit firm meet to be considered
for auditing ISEP administration?
To be considered for auditing ISEP
administration under this subpart, an
independent audit firm must:
(a) Be a licensed Certified Public Accountant Firm that meets all requirements for conducting audits under the
Federal Single Audit Act;
(b) Not be under investigation or
sanction for violation of professional
audit standards or ethics;
(c) Certify that it has conducted a
conflict of interests check and that no
conflict exists; and
(d) Be selected through a competitive
bidding process.
§ 39.411 How will the auditor report its
findings?
(a) The auditor selected under § 39.410
must:
(1) Provide an initial draft report of
its findings to the governing board or
responsible Federal official for the
school(s) involved; and
(2) Solicit, consider, and incorporate
a response to the findings, where submitted, in the final audit report.
(b) The auditor must submit a final
report to the Assistant Secretary—Indian Affairs and all tribes served by
each school involved. The report must
include all documented exceptions to
the requirements of this part, including those exceptions that:
(1) The auditor regards as negligible;
(2) The auditor regards as significant,
or as evidence of incompetence on the
part of responsible officials, and that
must be resolved in a manner similar

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