New Audit Testing Procedures Added to Tribal Compliance Regulations

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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 2—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’ September 30, 2023, and December 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) health care 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 health care employees
  • A selection of health care employee personnel files for those “occupying positions that have regular contact with or control over Indian children visiting Tribal or IHS health care facilities” to ensure appropriate procedures were performed prior to employment

Prepare for 2023 audits with the following recommendations:

  • Ensure policies and procedures are up to date. Indicate the steps taken prior to hiring that ensure compliance.
  • Identify who’s an employee. Who has “regular contact with or control over Indian children” should be specified in your policy and procedures making it clear who’s subject to this requirement.
  • Review current health care employee personnel files. Gauge current compliance and identify issues pre-audit with an internal records review. Develop corrective action if needed.

Extending to Other Programs

Several federal programs include background check requirements like the 2023 compliance supplement. Carefully review award documents and program guidance to determine background check compliance specifications.

For example, the ALN 15.042 Indian School Equalization program has a character investigation compliance requirement the OMB 2023 compliance supplement requires auditors to test.

We’re Here to Help

To learn more about the 2023 OMB compliance supplement and how it impacts your Tribe, contact you Moss Adams professional.

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