Finding Text
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Tribal Self-Governance: IHS Compact / Funding Agreement (Tribal Self-Governance and Determination Cluster) Assistance Listing Number: 93.210 Award year and number: 2024 – H1D4IHS0199-01-01 Criteria: According to 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, entities must maintain adequate documentation and evidence of compliance with grant requirements, including records of completed background checks for employees. The Indian Child Protection and Family Violence Prevention Act (25 USC 3207) requires tribes and tribal organizations that receive funds under the ISDEAA to conduct an investigation of the character of each individual who is employed or is being considered for employment in a position that involves regular contact with, or control over Indian children. Condition: Auditors sampled three (3) employees that were required to have a background check performed, of which one (1) where no background check documentation was able to be located by the Department. Additionally, two background checks reviewed did not meet the minimum requirements of the Uniform Guidance and did not include documentation of required adjudication. Questioned Costs: None. Cause: The lack of sufficient policies and procedures in place has led to the noted compliance matters. Effect: The failure to maintain the necessary background check record for one employee raises concerns about compliance with federal award requirements and may expose the Department to potential risks, including regulatory scrutiny and potential safety concerns. Identification as a Repeat Finding: This is a repeat finding from the prior year. This was reported as finding 2023-003 in the 2023 Auditor’s Report and the Summary Schedule of Prior Audit Findings. Auditor’s Recommendations: It is recommended that the Department implement strengthened internal controls and record management processes to ensure all required background check documentation is completed, recorded accurately, and readily accessible to comply with regulatory requirements. Additionally, the Department should consider conducting a review of all other personnel records to identify and rectify any similar issues. Management’s Response: The Tribe has increased the pay of our Human Resources Director in order to employ a qualified applicant, and reduce turnover of employees for this position. The Tribe has set internal controls with paper and digital files which will create consistency with paperwork retention, and make paperwork easy to find. The finance department has absorbed part of HR responsibilities to continue following the correct process of file retention until HR director is hired, and authorized funds for records management systems of HR consulting and digital management.