Audit 403662

Finding 2025-003 Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of Defense Federal Programs: Native American Lands Environmental Mitigation Program (NALEMP) ALN: 12.116 (NALEMP) Award Numbers: W911KB-23-2-0303 (NALEMP) Award Years: 2023 (NALMEP) Type of Finding: Material weakness in internal control over compliance and material noncompliance Criteria: The NALEMP program requires quarterly financial reports to be submitted within 30 days of the end of the quarter. Condition and Context: During the testing of the NALEMP program, we noted that the expenditure amounts being reported on the quarterly reports did not agree to the general ledger. At the end of the grant period this resulted in a large amount of expenditures that had not been properly reported to the granting agency and the Community recorded a large grant receivable balance. Cause: Lack of internal control over reporting. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat Finding: No. We believe the finding to be an isolated instance and not a systemic issue. Recommendation: We recommend the Community complies with all reporting requirements. Managements Response: Management agrees with this finding. See Corrective Action Plan.

Finding 2025-004 Late Reporting and Noncompliance with Reporting Requirements Federal Agencies: U.S. Department of Health and Human Services Federal Programs: Head Start Cluster ALN: 93.600 Award Numbers: 90CI010107 Award Years: 2024 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: Reporting requirements within the Head Start grant agreement state that annual and semi-annual reports are required to be submitted. The due date is set by the U.S. Department of Health and Human Services, which for the Community is March 1 for annual reports and June 30 for semi-annual reports. Condition and Context: The Community submitted the annual report, due March 1, 2025, late on April 15, 2025. Additionally, the Community had an on-site review by the Office of Head Start (OHS) during fiscal year 2025. During this review, it was discovered that the Federal Financial Report SF-425 submitted for the reporting period ended November 30, 2023 was submitted August 13, 2024 (165 days after the due date). While this is outside the period under audit, this provides additional context to our finding. We also noted that expenditures reported on the June 30, 2025 semi-annual report did not agree to the general ledger and were overstated by roughly $40,000. Cause: Lack of internal control over reporting. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat Finding: No. We believe the finding to be an isolated instance instance and not a systemic issue. Recommendation: We recommend the Community complies with all reporting requirements. Managements Response: Management agrees with this finding. See Corrective Action Plan.

Finding 2025-005 Lack of Internal Control over Special Tests and Provisions- Character Investigations Federal Agencies: U.S. Department of Health and Human Services Federal Programs: Indian Health Services Compact ALN: 93.210 Award Numbers: 58G970043 Award Years: 2024 and 2025 Type of Finding: Significant deficiency in internal control over compliance and noncompliance Criteria: The Indian Child Protection and Family Violence Prevention Act(25 USC 3207 (c)) requires tribes and tribal organzations that receive funds under the Indian Self-Determination and Education Act (ISDEAA) to conduct an investigation of the chracter of each individual who is emnployed or is being considered for employment in a position that involves regular contact with, or control over, Indian children. The Community must perform required background investigations on individuals who are employed or being considered for employment at Tribal and IHS health care facilities. Condition and Context: We selected a sample of 25 current employees who have regular contract with Indian children. The Community was missing federal background checks for seven of the employees sampled. Cause: Lack of internal control over chracter investigations. Effect: Failure to follow compliance requirements could result in loss of Federal funding. Questioned Costs: None noted. Repeat Finding: No. Recommendation: We recommend that management implement a policy to perform required background checks for all employees that have regular contact with Indian children. Managements Response: Management agrees with this finding. See Corrective Action Plan.