FAC Explorer

Finding 1229717 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-09-14
Audit: 410906
Organization: Houlton Band of Maliseet Indians (ME)
Auditor: RHR SMITH & COMPANY

AI Summary

  • Core Issue: The Houlton Band of Maliseet Indians failed to follow their own procurement policies, risking non-compliance with federal regulations.
  • Impacted Requirements: This finding relates to federal procurement standards outlined in 2 CFR 200.317-200.327.
  • Recommended Follow-Up: The Band should review program requirements and strengthen their internal controls over procurement processes.

Finding Text

Material Weaknesses 2025-001 – Procurement, Suspension & Debarment Federal Program Information: U.S. Department of Agriculture ALN 10.567 Food Distribution Program on Indian Reservations Criteria: The following CFR(s) apply to this finding: 2 CFR 200.317-200.327 Condition: During audit procedures, it was identified that the Houlton Band of Maliseet Indians did not follow their procurement policies and procedures. Cause: The Houlton Band of Maliseet Indians does not have the necessary internal controls over procurements. Effect: Procurements may not be conducted in compliance with federal requirements and could result in unallowable expenses being charged to the program and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: During audit procedures, auditor requested copies of the contracts and procurement history files, none could be provided. This is not a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the Houlton Band of Maliseet Indians familiarize themselves with the program requirements and implement the internal control policies and procedures that have already been adopted by them. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Houlton Band of Maliseet Indians.

Corrective Action Plan

CORRECTIVE ACTION PLAN (Concerning Finding 2025-001) Contact Person Responsible for Corrective Action: Bruce Haggerty, Finance Director Corrective Action: The Houlton Band of Maliseet Indians will take the following actions to address finding 2025- 001: I attended Procurement Training (through Housing and Urban Development) on September 2-3, 2026. HBMI is in the process of updating our Procurement Policy to meet current federal standards. HBMI is also in the process of creating a checklist based on our Procurement Policy to help with assessing the applicable rules during each procurement. Staff will be educated on the new Procurement Policy and Procurement Checklist. Anticipated Completion Date: 9/30/2026

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1229713 2025-001
    Material Weakness Repeat
  • 1229714 2025-001
    Material Weakness Repeat
  • 1229715 2025-001
    Material Weakness Repeat
  • 1229716 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.31M
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $713,391
15.021 CONSOLIDATED TRIBAL GOVERNMENT PROGRAM $646,189
66.605 PERFORMANCE PARTNERSHIP GRANTS $366,987
16.587 VIOLENCE AGAINST WOMEN DISCRETIONARY GRANTS FOR INDIAN TRIBAL GOVERNMENTS $347,917
84.250 AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES $328,171
14.862 INDIAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM $294,889
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $271,550
15.030 INDIAN LAW ENFORCEMENT $268,172
93.654 INDIAN HEALTH SERVICE BEHAVIORAL HEALTH PROGRAMS $264,945
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES_PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $233,094
15.024 INDIAN SELF-DETERMINATION CONTRACT SUPPORT $223,704
93.441 INDIAN SELF-DETERMINATION $221,085
15.148 TRIBAL ENERGY DEVELOPMENT CAPACITY GRANTS $175,000
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $160,290
16.841 VOCA TRIBAL VICTIM SERVICES SET-ASIDE PROGRAM $132,537
93.228 INDIAN HEALTH SERVICE_HEALTH MANAGEMENT DEVELOPMENT PROGRAM $130,780
15.037 WATER RESOURCES ON INDIAN LANDS $127,121
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $123,000
15.669 COOPERATIVE LANDSCAPE CONSERVATION $110,156
93.237 SPECIAL DIABETES PROGRAM FOR INDIANS_DIABETES PREVENTION AND TREATMENT PROJECTS $89,213
93.600 HEAD START $81,517
15.156 COOPERATIVE LANDSCAPE CONSERVATION $77,213
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $65,168
10.902 SOIL AND WATER CONSERVATION $60,774
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $47,907
66.608 ENVIRONMENTAL INFORMATION EXCHANGE NETWORK GRANT PROGRAM AND RELATED ASSISTANCE $46,582
15.875 ECONOMIC, SOCIAL, AND POLITICAL DEVELOPMENT OF THE TERRITORIES $42,851
66.046 CLIMATE POLLUTION REDUCTION GRANTS $42,500
93.047 SPECIAL PROGRAMS FOR THE AGING_TITLE VI, PART A, GRANTS TO INDIAN TRIBES_PART B, GRANTS TO NATIVE HAWAIIANS $36,014
15.029 TRIBAL COURTS $33,670
15.033 ROAD MAINTENANCE_INDIAN ROADS $27,807
10.567 FOOD DISTRIBUTION PROGRAM ON INDIAN RESERVATIONS $18,000
15.639 TRIBAL WILDLIFE GRANTS PROGRAM $14,085
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $13,539
10.558 CHILD AND ADULT CARE FOOD PROGRAM $13,383
93.556 PROMOTING SAFE AND STABLE FAMILIES $10,040
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $9,066
16.726 JUVENILE MENTORING PROGRAM $8,647
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $8,508
15.141 ENVIRONMENTAL MANAGEMENT_INDIAN PROGRAMS $8,127
20.205 HIGHWAY PLANNING AND CONSTRUCTION $8,040
16.025 SPECIAL DOMESTIC VIOLENCE CRIMINAL JURISDICTION IMPLEMENTATION $5,093
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $2,943
15.041 ENVIRONMENTAL MANAGEMENT_INDIAN PROGRAMS $2,891
17.265 NATIVE AMERICAN EMPLOYMENT AND TRAINING $789
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $97