Still No Progress in Implementing Controls Over Contracts and Grants With Indians

GAO was asked to review the accountability of federal funds and property involving contracts and grants awarded for the benefit of Indians.

A GAO review of 178 grants and contracts disclosed that the Bureau of Indian Affairs continues to have problems administering and monitoring Indian programs and accounting for federal funds. GAO found that 141 contracts and grants were awarded retroactively, resulting in expenditure of federal funds over which the Federal Government has little or no control. Contracts and grants that the Bureau awarded to Indian tribes did not always have adequate criteria for measuring tribal performance. Thus, the Bureau cannot evaluate program results and properly audit the use of federal funds. Contract and grant monitoring has been hampered by part-time supervision, inadequate monitoring of reports, little personnel training, and insufficient auditing. The Bureau was not requiring some tribes to submit timely expense vouchers which justified cash withdrawals under their letters of credit. Two Indian tribes did not have adequate control over federal contract and grant funds which resulted in improper expenditure of funds, funds being transferred between federal contract and grant programs, inadequate supporting expenditures, and improper reimbursements. GAO noted a potential conflict of interest between the program-related duties of the contract/grant officer representatives and their procurement-related duties of monitoring and reporting on tribal performance. Five of the nine tribes which GAO reviewed had inadequate or no property management systems. As a result, the tribes do not have adequate controls for the government property in their possession.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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