New audit testing procedures added to Tribal compliance regulations

New compliance requirements for character investigations by Tribes and Tribal organizations included in the Office of Management and Budget’s (OMB) 2023 Compliance Supplement, Part two — Matrix of Compliance Requirements have been recently added to audit testing procedures.

Associated with Assistance Listing Number (ALN) 93.210, Tribal Self-Governance Program, the new requirements are effective for audits of fiscal years beginning after June 30, 2022, including Tribes’ Sept. 30, 2023, and Dec. 31, 2023, fiscal year end audits.

Complying with these new requirements can facilitate grant approvals and the Tribe’s ability to fulfill its mission to its members, improve grant rewards, and bring peace of mind to Tribal members.

Strengthening the character investigations mechanism

The Indian Child Protection and Family Violence Prevention Act requires Tribes and Tribal organizations that receive funds under the Indian Self-Determination and Education Assistance Act (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.

The OMB’s 2023 change outlined in ALN 93.210 requires auditors to perform testing procedures to “determine whether Tribes and Tribal organizations are performing the required background investigations by or being considered for employment at Tribal and Indian Health Service (IHS) healthcare facilities” for the Tribal Self-Governance program.

While this compliance requirement isn’t new to the compliance supplement or this program, it’s the first year it’s applicable for auditors to perform procedures over the requirement for the Tribal Self-Governance program.

Preparing for 2023 single audits

Per the compliance supplement, the new auditing requirement aligns closely with traditional audit tasks. Your auditor will review two areas:

• Policies and procedures surrounding the performance of background investigations for healthcare employees
• A selection of healthcare employee personnel files for those “occupying positions that have regular contact with or control over Indian children visiting Tribal or IHS healthcare facilities” to ensure appropriate procedures were performed prior to employment