Audit 366602

2024-002 – Procurement Federal program information: Funding Agency: U.S. Departments of the Interior Title: Bureau of Indian Affairs Self-Governance Assistance Listing Number: 15.022 Award Periods: January 1, 2024 – December 31, 2024 Criteria: Uniform Guidance regulations section CFR 200.317 and CFR 200.320(a) state, the non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurement conform to applicable federal law and the standards identified. Procurement by micro-purchase is the acquisition of supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold. During 2024, the Department’s procurement policy has a micro purchase threshold of $10,000. The Department’s policy states “Duckwater will conduct procurement in a manner that prohibits the use of statutorily or administratively imposed data, local, or tribal geographical preferences in the evaluation of bids or proposals”. Condition: We reviewed one vendor that was paid in excess of $10,000; however, we were not provided with procurement documentation for this purchase. Context: One of thirty-five expenditures tested. Questioned Costs: None. Cause: The Department’s procurement policies and procedures were not enforced during the year. Effect: The Department is not always ensuring that all goods and services are obtained at a fair price and the Department is not in compliance with their procurement policy. Auditors’ Recommendation: Enforce procurement policies and procedures at all times. Management Response: Management believes that the procurement process has improved considerably. Managers are following the procurement policy by making price comparisons and submitting quotes when required. Approvals for larger purchases are obtained by Resolution from Council. The Finance Manager and the Accounts Payable Clerk monitor the documents submitted with purchase requests to ensure that the required documents have been submitted. Management believes that it is an isolated instance where a transaction lacked procurement documents.

2024-003 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Furthermore, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Lastly, several programs with different ALN’s are included in the same fund and were not broken out on the SEFA. Additional effort was needed to break out the cash receipts and expenditures for each of the different ALN’s. Context: Based on review of the ALN’s and the amounts reported on the SEFA. Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Beginning balances should agree to the prior year balances. Accrual entries and expense balances should be finalized before the preparation of the SEFA. For the BIE School Grant fund, ensure expenditures and cash receipts are broken out by the different ALN’s on the SEFA. Duckwater Shoshone Tribe Governmental Services Department Schedule of Findings and Questioned Costs — continued For the Year Ended December 31, 2024 Section III — Federal Award Findings and Questioned Costs – continued 2024-003 – Schedule of Expenditures of Federal Awards – continued Management Response: The Finance Department will begin close out work on the year under audit as soon as the year ends, so that all accounts, including expenditures will be accurately adjusted before the SEFA is prepared. Finance will verify all Assistance Listing Numbers on the SEFA. Once the SEFA is prepared, it will be independently reviewed by a contracted CPA before submitting the SEFA to the auditor.

2024-003 – Schedule of Expenditures of Federal Awards Federal program information: Funding Agency: All major program funding agencies Title: All major programs Assistance Listing Number: All major program ALN’s Award Periods: All major program award periods Criteria: 2 CFR section 200.510 (b), requires the Department to prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the Department’s financial statements and the SEFA must include the total awards expended as determined in accordance with 2 CFR §200.502. Condition: Certain federal programs on the SEFA had inaccurate Assistance Listing Numbers (ALN) and/or ALN’s were not included on the initial client prepared SEFA. In addition, several audit adjustments were needed to correct the expenditures reported on the SEFA. Furthermore, significant adjustments were needed to correct the ending and beginning receivable/unearned revenue balances. Lastly, several programs with different ALN’s are included in the same fund and were not broken out on the SEFA. Additional effort was needed to break out the cash receipts and expenditures for each of the different ALN’s. Context: Based on review of the ALN’s and the amounts reported on the SEFA. Questioned Costs: None. Cause: Internal controls were not designed and implemented to ensure accurate preparation of the SEFA. Effect: Revisions were needed to accurately prepare the SEFA by ALN and to ensure expenditures and receivable/unearned revenue balances were properly reported. Without proper internal controls there is the risk that errors and misstatements could exist and not be prevented or detected and corrected on a timely basis. Auditors’ Recommendation: Internal control procedures should be established to ensure that an accurate SEFA is prepared in accordance with 2 CFR §200.502. The SEFA should be reviewed by someone independent from the preparer to verify the accuracy of the information. Beginning balances should agree to the prior year balances. Accrual entries and expense balances should be finalized before the preparation of the SEFA. For the BIE School Grant fund, ensure expenditures and cash receipts are broken out by the different ALN’s on the SEFA. Duckwater Shoshone Tribe Governmental Services Department Schedule of Findings and Questioned Costs — continued For the Year Ended December 31, 2024 Section III — Federal Award Findings and Questioned Costs – continued 2024-003 – Schedule of Expenditures of Federal Awards – continued Management Response: The Finance Department will begin close out work on the year under audit as soon as the year ends, so that all accounts, including expenditures will be accurately adjusted before the SEFA is prepared. Finance will verify all Assistance Listing Numbers on the SEFA. Once the SEFA is prepared, it will be independently reviewed by a contracted CPA before submitting the SEFA to the auditor.