Program Information: Assistance Listing #: 21.027 U.S. Department of the Treasury COVID-19 American Rescue Plan Act - 2021 Award Numbers: SLFRP3186, SLFRP4785 Award Periods: 8/13/2021 - 12/31/2026, 6/4/2021 - 12/31/2026 Criteria: Recipients may use payments from SLFRF to replace lost public sector revenue to provide government services. Recipients may use this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic. Under the 2022 Final Rule, recipients can elect a one-time “standard allowance” of $10 million (not to exceed the recipient’s award amount) to spend on the “provision of government services” during the period of performance. Alternatively, recipients can calculate lost revenue for the years 2020, 2021, 2022, and 2023 based on the formula provided in the 2022 Final Rule to determine the amount of SLFRF funds that can be used for the “provision of government services.” In calculating revenue loss, recipients can choose whether to use calendar or fiscal year dates but must be consistent throughout the period of performance. If calculating revenue loss, recipients must provide auditors with evidence supporting their revenue loss calculation. 2 CFR § 200.303 - Internal controls states, the non-federal entity must: (a) Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: During testing, we noted the following: 21.027 • The Tribe was unable to provide documentation demonstrating that the required Annual Project and Expenditure Report was prepared and submitted. Additionally, the Tribe was unable to provide documentation supporting the calculation of revenue loss used to support expenditures reported under the revenue replacement provision. [ X ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Cause: The Tribe did not retain copies of the required performance reports, and procedures for maintaining federal reporting documentation were not consistently followed. Turnover in management likely contributed to the lack of record retention. Effect: The lack of retained documentation increases the risk that required reports may not be submitted accurately or timely and that expenditures reported under the revenue replacement provision may not be adequately supported. As a result, the Tribe may be unable to demonstrate compliance with applicable Federal requirements and amounts reported to the Federal awarding agency may be subject to additional review or potential disallowance. Questioned Costs: None noted. The lack of documentation demonstrating preparation and submission of the Annual Project and Expenditure Report did not result in identifiable questioned costs. Additionally, aince the Tribe was unable to provide documentation supporting the revenue loss calculation used to substantiate the amount reported under the revenue replacement provision. Accordingly, we were unable to determine whether any questioned costs were associated specifically with the revenue replacement calculation. Repeat Finding: No. Recommendation: We recommend the Tribe implement a formal process to track required federal reporting deadlines and ensure that copies of all submitted reports are maintained in the grant files. This may include establishing a reporting calendar, designating a responsible staff member to complete and retain the reports, and implementing a supervisory review to ensure compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN0222 Award Periods: 7/29/2021-7/29/2025 Criteria: 2 CFR § 200.305(b) - Federal Payment (Cash Management) requires that non-federal entities receiving federal awards minimize the time elapsing between the transfer of federal funds and the disbursement of those funds for program purposes. Advance payments must be limited to the minimum amounts needed and timed to meet the recipient’s actual and immediate cash requirements. Entities must maintain written procedures and financial management systems that provide for appropriate fund control and accountability. 2 CFR § 200.303 - Internal controls states, the non-federal entity must: (a) Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: During testing, we noted the following: 93.445 • For 2 of 2 samples, we were not provided documentation to verify that the expenditures were incurred prior to the date of the reimbursement request. • For 2 of 2 samples, there was no documentation of review and approval of the reimbursement requests. [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Cause: The Tribe did not have adequate procedures in place to ensure that supporting documentation for reimbursement requests, including documentation demonstrating that expenditures had been incurred and evidence of management review and approval, was consistently maintained. Turnover in management likely contributed to the lack of record retention. Effect: Without adequate supporting documentation, the Tribe was unable to demonstrate that federal reimbursement requests were limited to expenditures incurred prior to requesting reimbursement. Additionally, the lack of documented review and approval increases the risk that unsupported, inaccurate, or otherwise unallowable amounts could be requested for reimbursement and not be detected and corrected in a timely manner. Questioned Costs: None. Although sufficient documentation was not provided to verify that expenditures were incurred prior to the reimbursement requests, no specific unallowable costs were identified as a result of audit procedures. Repeat Finding: No. Recommendation: We recommend that the Tribe follow its policies and procedures and establish procedures as needed requiring each federal reimbursement request to be supported by documentation demonstrating that the related expenditures were incurred prior to the reimbursement request. We further recommend that reimbursement requests be reviewed and approved by an appropriate individual prior to submission, with evidence of the review and approval documented and retained. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN0222 Award Periods: 7/29/2021-7/29/2025 Assistance Listing #: 21.027 U.S. Department of the Treasury COVID-19 American Rescue Plan Act - 2021 Award Numbers: SLFRP3186, SLFRP4785 Award Periods: 8/13/2021 - 12/31/2026, 6/4/2021 - 12/31/2026 Criteria: 2 CFR § 200.303 - Internal controls states, the non-federal entity must: (a) Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Tribe, as a nonfederal entity and Indian tribe, is required to follow the same procurement laws and procedures it uses for procurements from non-federal funds, together with applicable federal statutes, the procurement standards in 2 CFR part 200 (including 2 CFR 200.317 and related provisions), and any additional procurement requirements specified in the federal award documents when expending federal award funds. In addition, under the Procurement and Suspension and Debarment compliance requirement, the Tribe must ensure that contracts and subawards under covered transactions are not made with parties that are suspended, debarred, or otherwise excluded from participation in federal assistance programs, which requires verification against the System for Award Management (SAM) Exclusions in accordance with 2 CFR 200.213 and 2 CFR part 180 (including 2 CFR 180.300). Condition/Context: During testing, we noted the following: 21.027 • 5 of 6 IIIs did not have documentation of alternate bidding or sole source justification. • 6 of 6 IIIs did not have documentation that a suspension and debarment search was performed prior to purchasing. 93.445 • 7 of 7 IIIs did not have documentation that a suspension and debarment search was performed prior to purchasing. [ X ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Cause: The Tribe’s procurement procedures were not consistently followed, and required documentation was not consistently prepared or retained. Staff turnover and inconsistent application of procurement requirements contributed to the lack of documentation supporting competitive procurement or sole source justification and suspension and debarment verification. Effect: Without documented verification, there is an increased risk that procurements may not be conducted in accordance with Federal requirements or that Federal funds could be paid to an ineligible vendor. Questioned Costs: Suspension and Debarment: None noted. The vendors were not found to be suspended or debarred; the issue relates solely to lack of documentation. Procurement: 21.027 • $108,943 - Known Repeat Finding: Yes for 93.445, Finding #2023-003. No for 21.027. Recommendation: We recommend the Tribe strengthen its procurement procedures to ensure Federal procurement requirements are completed and documented prior to contract award or purchase. Procurement files should include documentation supporting competitive procurement or an allowable sole source justification, when applicable, as well as evidence of suspension and debarment verification. The Tribe should also establish procedures to ensure required procurement documentation is retained and reviewed for compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN0222 Award Periods: 7/29/2021-7/29/2025 Assistance Listing #: 21.027 U.S. Department of the Treasury COVID-19 American Rescue Plan Act - 2021 Award Numbers: SLFRP3186, SLFRP4785 Award Periods: 8/13/2021 - 12/31/2026, 6/4/2021 - 12/31/2026 Criteria: Under the Uniform Guidance, the Tribe is required to comply with federal statutes, regulations, and the terms and conditions of its federal awards, and to establish, document, and maintain effective internal control over federal awards to provide reasonable assurance that the awards are managed in compliance with those requirements. This includes evaluating and monitoring compliance and taking prompt action when instances of noncompliance are identified. The Compliance Supplement identifies Reporting as a compliance requirement that requires recipients to file specific reports and comply with the related reporting requirements applicable to those reports. Uniform Guidance requirements for performance and financial monitoring and reporting are addressed in 2 CFR 200.328 through 200.330, and record retention requirements are addressed in 2 CFR 200.334 through 200.338. Accordingly, the Tribe should prepare and submit required federal reports in accordance with the applicable program requirements and award terms and conditions, including the Annual Project and Expenditure Report for ALN 21.027 and the Quarterly Progress/Performance Reports for ALN 93.445. The applicable award terms and conditions, agency guidance, or pass-through entity requirements should be referenced for the exact program-specific report due dates, reporting frequency, submission method, and required report content. The Tribe should also maintain sufficient documentation evidencing that each required report was prepared, reviewed as applicable, submitted timely, and retained for audit or monitoring purposes. 21.027 • The Tribe did not provide evidence that the required Annual Project and Expenditure report was prepared and submitted. 93.445 • The Tribe did not provide evidence that the required Quarterly Progress/Performance reports were prepared and submitted. [ X ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Cause: The Tribe did not retain copies of the required performance reports, and procedures for maintaining federal reporting documentation were not consistently followed. Turnover in management likely contributed to the lack of record retention. Effect: Because the Tribe did not maintain documentation, we were unable to determine whether required performance reports were submitted. Failure to submit required reports could lead to delayed payments from the grantor or denial of eligibility for future grants from the awarding agency. Questioned Costs: None noted. This is a reporting and documentation finding; no costs are questioned. Repeat Finding: Yes for 93.445, Finding #2023-004. No for 21.027. Recommendation: We recommend the Tribe implement a formal process to track required federal reporting deadlines and ensure that copies of all submitted reports are maintained in the grant files. This may include establishing a reporting calendar, designating a responsible staff member to complete and retain the reports, and implementing a supervisory review to ensure compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.
Program Information: Assistance Listing #: 93.445 U.S. Department of Health and Human Services I.H.S. Water Tank Replacement Award Numbers: PH12-U35, RN0222 Award Periods: 7/29/2021-7/29/2025 Assistance Listing #: 21.027 U.S. Department of the Treasury COVID-19 American Rescue Plan Act - 2021 Award Numbers: SLFRP3186, SLFRP4785 Award Periods: 8/13/2021 - 12/31/2026, 6/4/2021 - 12/31/2026 Assistance Listing #: 11.029 U.S. Department of Commerce National Telecommunication & Information Adm. Award Number: NT23TBC0290003 Award Period: 12/1/2022-11/30/2026 Criteria: 2 CFR § 200.303 - Internal controls states, the non-Federal entity must: (a) Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition/Context: During testing, we noted the following: 21.027 • 1 of 11 Non-IDC Individually Important Items (IIIs) did not have an indication of review/approval of a journal entry (JE) reallocating funds from the program. • 2 of 2 IDC IIIs did not have indication of review/approval on the indirect cost allocation JE. 93.445 • 5 of 7 Non-IDC IIIs had no purchase requisition documentation provided. • 1 of 1 IDC IIIs did not have indication of review/approval on the indirect cost allocation JE. 11.029 • 7 of 11 IIIs had no purchase requisition documentation provided. [ ] Compliance Finding [ ] Significant Deficiency [ X ] Material Weakness Cause: The Tribe has limited fiscal staffing and experienced personnel changes during 2025 and 2026. As a result, procedures for documenting and retaining and locating evidence of review and approval were not consistently followed for journal entries and purchase requisitions. Effect: The lack of documented review and approval increases the risk that errors, misstatements, or unauthorized transactions may not be prevented or detected and corrected in a timely manner. Additionally, without documentation of the review and approval, the Tribe is unable to demonstrate that established internal control procedures were consistently performed. Questioned Costs: None noted, testing did not identify any unallowable, unsupported, or otherwise questioned expenditures related to the items tested. Repeat Finding: No. Recommendation: We recommend the Tribe strengthen its internal controls over federal expenditures by ensuring that purchase requisitions, journal entries, and indirect cost allocation entries are reviewed and approved by appropriate personnel prior to processing. Evidence of the review and approval should be consistently documented and retained in accordance with Tribal policies. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.