Key Insights from the Yankton Sioux Tribe's 2022 Federal Single Audit

In 2022, the Yankton Sioux Tribe underwent a federal single audit conducted by Wohlenberg Ritzman & Co., LLC. The audit reviewed total expenditures of $28,111,672 across various federal programs, including significant funding from the Coronavirus State and Local Fiscal Recovery Funds.

Key Findings

The audit identified several critical findings:

• Significant Deficiencies: Multiple findings were categorized as significant deficiencies, particularly related to:

• Activities Allowed and Unallowed: Issues in compliance with allowable costs and periods of performance were noted across several programs, including:

  • Indian Self Determination
  • Highway Planning & Construction
  • Child Care and Development Block Grant
  • Law Enforcement
  • Coronavirus Recovery Funds

• Material Weaknesses: The audit also highlighted material weaknesses in:

• Reporting Compliance: Issues with reconciling federal financial reports to the general ledger, particularly for the Indian Law Enforcement program and the Coronavirus Recovery Funds.
• Procurement Compliance: A lack of procurement documentation for transactions under the Highway Planning and Construction Program, raising concerns about compliance with federal procurement standards.

Risks Identified

The repeated nature of these findings over several years indicates systemic issues within the Tribe's internal controls and compliance processes. The risks include: - Potential misuse of federal funds due to inadequate oversight. - Increased scrutiny from federal agencies, which could impact future funding.

Auditor Performance

Wohlenberg Ritzman & Co., LLC conducted the audit with a focus on compliance and internal controls. Their findings reflect a thorough review, but the recurrence of significant deficiencies raises questions about the effectiveness of previous corrective actions taken by the Tribe.

Organizational Impact

The findings from this audit could have substantial implications for the Yankton Sioux Tribe: - Funding Risks: Continued deficiencies may jeopardize future federal funding. - Operational Challenges: The need for improved internal controls and compliance measures could strain resources and require additional training for staff.

Conclusion

The 2022 federal single audit of the Yankton Sioux Tribe serves as a critical reminder of the importance of robust internal controls and compliance measures. Addressing these findings will be essential for ensuring the Tribe can effectively manage federal funds and support its community.