Finding 1220648 (2025-002)

2025-002 Special Tests and Provisions - Character Investigations Federal agency: U.S. Department of Health and Human Services Federal program: Tribal Self-Governance Program: IHS Compacts/Funding Agreements (ALN 93.210). Pass-through Entity: None Federal Award Year: Year ended September 30, 2025 Type of Finding: Material Weakness in Internal Control over Compliance; Adverse Opinion on Compliance Criteria: The Indian Child Protection and Family Violence Protection Act (25 USC 3207) requires that all Indian tribes or tribal organizations receiving funds under the authority of the Indian Self Determination and Education Assistance Act or Tribally Controlled Schools Act of 1988 must conduct a background investigation for individuals whose duties and responsibilities would allow them regular contact with or control over Indian children. The Act further states that the tribe or tribal organization can employ only individuals who meet standards of character that are no less stringent than those prescribed by the regulations, which are outlined in 42 CFR 136.405, and only after an individual has been the subject of a satisfactory background investigation as described in 42 CFR 136.406. Condition: The Band did not have documentation to support that character investigations were performed on employees that have regular contact with, or control over Indian children for all employees subject to character investigations. Cause: Character investigations were not conducted in accordance with 42 CFR 136.406. Effect: The Band is not in compliance with special tests and provisions requirements of the Uniform Guidance. The potential effect is submitting unallowable costs, or loss of federal funding. Questioned costs: None Context: The population of employees subject to character investigations included 19 employees. The Band did not have documentation to support that character investigations were performed on employees that have regular contact with, or control over Indian children for all employees subject to character investigations. Repeat finding: Yes Recommendation: We recommend that all individuals with access to vulnerable populations, including contractors and volunteers are subjected to the required background investigations and that documentation that these investigations are performed are retained in the records of the Band. Views of responsible officials: The Band agrees with the above finding and its response is included in the corrective action plan.