TURTLE MOUNTAIN PUBLIC UTILITIES COMMISSIONTribal Government

Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria To ensure all expenditures charged to a program are allowable, an entity should establish controls for approval of expenditures. Condition Three disbursements did not contain required department head approval. Questioned Costs None Context Forty disbursements were selected for testing. Three disbursements did not have documentation of required department head approval. Effect There is an increased risk of unallowable costs being charged to grants. Cause Management oversight Repeat Finding Yes Recommendation We recommend the Commission should review their policies and procedures for grant expenditures. Views of Responsible Officials Management will review its policies and procedures for grant expenditures.

Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. Condition One contract did not have the required ?suspension and disbarment? verbiage listed in the contract. It was determined during the audit that the contractor was not suspended or debarred. Questioned Costs None Context Three contracts were selected for testing. One contract did not have the required ?suspension and debarment? verbiage listed in the contract. We also noted Public Utilities Commission does not have a board approved procurement policy to follow before making purchases. Effect There is an increased risk of Public Utilities Commission entering into a construction contact with a vendor who is on the suspended and debarred list. There is also an increased risk of making purchases that are not in accordance with federal requirements. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission should implement policies and procedures to ensure all federally funded construction projects have the suspension and debarment clause. The Commission should also implement policies and procedures to ensure all purchases follow federal requirements. Views of Responsible Officials Management will review its policies and procedures for monitoring suspended and debarred parties.

Federal Program Garrison Diversion Unit (AL # 15.518) ? Significant Deficiency Criteria Recipients must use the standard financial reporting forms or such other forms as may be authorized by OMB (approval is indicated by an OMB paperwork control number on the form) when reporting to the federal awarding agency. Each recipient must report program outlays and program income on a cash or accrual basis, as prescribed by the federal awarding agency. Condition Two reports were filed late. Questioned Costs None Context All four quarterly reports for both the operating and capital grants were reviewed. Two reports were submitted late. Effect There is an increased risk that a report would not be submitted by the required due date. Cause Management oversight Repeat Finding No Recommendation We recommend the Commission implement policies and procedures that ensure all reports are submitted by their required due date. Views of Responsible Officials Management will review its policies and procedures for grant reporting.

Federal Program Garrison Diversion Unit (CFDA # 15.518) ? Material Weakness Criteria To provide reasonable assurance that all laborers and mechanics employed by contractors or subcontractors to work on construction in excess of $2,000 financed by federal assistance funds are paid prevailing wage rates. Also, to ensure federal funds were not used for transactions with parties that are suspended or debarred. Condition Management was unable to provide evidence that wage rates paid to contractors or subcontractors were being monitored. Questioned Costs Undeterminable. Context All construction projects for this program that reported payments to contractors were reviewed for compliance. Effect Non-compliance with the Federal Davis Bacon requirements. Cause Procedures are not in place to ensure all contracts for construction projects in excess of $2,000 are monitored for compliance with Davis Bacon. Repeat Finding This finding was reported in the immediately prior audit as finding 2019-003. Recommendation We recommend the Commission maintain a tracking system to ensure all construction projects are monitored for compliance with prevailing wage rates. Views of Responsible Officials Management will implement procedures to ensure construction projects are monitored for compliance with prevailing wage rates.