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The OIG previously conducted financial audits of OJP grants, including supplements, awarded to the following tribal grantees:35
| • Sault Ste. Marie Tribe of Chippewa Indians, Report No. GR‑50-05-006, February 2005 |
| • Oglala Sioux Tribe, Report No. GR-60-05-004, February 2005 |
| • Mississippi Band of Choctaw Indians, Report No. GR‑40‑05‑003, January 2005 |
| • Lummi Indian Nation, Report No. GR-90-05-007, February 2005 |
During these audits, we tested each tribal grantee’s accounting records to determine if reimbursements claimed for costs under the grants were allowable, supported, and in accordance with applicable laws, regulations, guidelines, and terms and conditions of the grants. The results of these audits are summarized below.
Sault Ste. Marie Tribe of Chippewa Indians
For the Sault Ste. Marie Tribe, we determined that controls over expenditures were generally adequate to ensure that expenses were properly accounted for and that transactions were adequately supported. However, $50,890 of costs charged to the grant were unsupported or unallowable. Specific deficiencies included:
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Failure to monitor grant expenditures by budget category or obtain approval to transfer funds between categories, resulting in unapproved fund transfers of $40,418, which covered deviations in excess of 10 percent of the approved budgets.
Failure to maintain adequate records to support $8,399 of the grantee’s required matching contribution and $2,073 in grant expenditures. Poor accounting review and reconciliation procedures resulting in the grantee drawing down funds in excess of expenditures. Part of the excess drawdown was caused by the grantee requesting reimbursement twice for the same expenditures. Failure to file required reports in a timely manner. At least one-third of the Financial Status Reports (FSRs) were filed late and one-half of the progress reports were filed late or not at all.
Oglala Sioux Tribe
The financial audit revealed that the Oglala Sioux Tribe claimed and was reimbursed for unallowable and unsupported costs. We found that: (1) grant drawdowns exceeded immediate needs; (2) the tribe did not meet its matching requirements; and (3) required reports were not always accurate or submitted in a timely manner. Based on the deficiencies listed below, we identified dollar-related findings totaling $1,046,176, or 7.4 percent, of the $14,143,064 total grant funds awarded. Specifically, we found:
The Oglala Sioux Tribe was reimbursed $803,326 for costs charged to the grants that were either not supported by adequate documentation or were not allowable. We also identified $234,441 in funds put to better use that were related to deobligated grant funds and fees paid to contractors. The Oglala Sioux Tribe received drawdowns of grant funds in excess of its immediate disbursement requirements, resulting in $2,970 in imputed interest charges. The Oglala Sioux Tribe did not provide supporting documentation for its matching requirements, resulting in a questioned excess federal share of $5,439. FSRs and progress reports were not always submitted or were not submitted in a timely manner for all grants. FSRs were not always accurate for all grants.
Mississippi Band of Choctaw Indians
The financial audit of grants awarded to the Mississippi Band of Choctaw Indians revealed deficiencies in the areas of reporting, budget management and control, matching costs, and expenditures. Further, some property purchased with federal funds was not managed according to financial guidelines. The tribe also made several advance payments that are generally prohibited by federal regulations. As a result of these deficiencies, we questioned $191,872, or 1.1 percent, of the total grant funds awarded. Specifically, we found:
FSRs and progress reports were not always submitted or were not submitted in a timely manner for all grants. The tribe did not provide the required matching share or costs from the Victim Assistance in Indian Country grant, Grant No. 1999VRGX0011. The tribe received $191,872 in grant funds that was either not supported by adequate documentation, not allowable, not approved by OJP, or exceeded the amounts approved by OJP. Some equipment purchased with grant funds did not have an inventory control tag and the property records did not indicate the percentage of federal participation in the cost of the property. The tribe made advance payments that are prohibited by regulations.
Lummi Indian Nation
During the financial audit, we found that the accounting and internal control systems were not adequate to ensure that funds were used optimally and that expenditures of funds were in conformance with the grants.
FSRs, progress reports, and performance reports were either not submitted or were not submitted in a timely manner. FSRs were not initially accurate and were submitted multiple times until they accurately reflected the accounting records.
We also identified a total of $238,021 in dollar-related findings for the three grants to the Lummi Indian Nation. Specifically:
Grant No. 1999VRGX0012:
The tribe transferred funds in excess of 10 percent between budget categories (questioned costs of $2,423) and added budget categories (questioned costs of $2,728) without prior approval. The tribe claimed $6,600 in unallowable rent, $7,500 in unallowable legal fees, $200 in unallowable advertising costs, and $844 in unallowable personnel costs.
Grant No. 2001-VI-GX-0002:
The tribe added two budget categories without prior approval (questioned costs of $2,593). The tribe failed to meet the local match (questioned costs of $22,162) and provided a match that did not meet grant requirements (questioned costs of $31,510). The tribe claimed $1,438 in unallowable travel expenses, $1,457 in unallowable vehicle repair and maintenance, $299 in unallowable cleaning expenses, $61,208 in unallowable personnel costs, and $47,103 in unallowable indirect costs.
Grant No. 2001-VR-GX-0001:
The tribe transferred funds in excess of 10 percent between budget categories without prior approval (questioned costs of $7,217). The tribe failed to meet the local match (questioned costs of $11,309). The tribe claimed $1,134 in unallowable vehicle insurance and $5,775 in unallowable rent. The tribe claimed $11,009 in unsupported transfers into the grant. The tribe claimed $13,512 in unallowable expenses after the grant end date of September 30, 2003.
In addition to the victim assistance grants discussed in this report, the financial audits generally included other tribal-specific grants awarded by OJP.
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