A review of the Torres-Martinez Tribal Temporary Assistance for Needy Families program's annual audits shows many of the same financial accountability problems persisting year after year despite assurances from tribal officials and program administrators that solutions were in place or on the way:
2002
Auditor: “It would have been difficult to determine whether Federal or State TANF cash was being properly drawn during the period under audit because the condition of the program's records would have made any reports generated during that period materially inaccurate.”
Tribal officials: Stated they had hired a new financial services director. “He directly oversees all of the TANF accounting functions and has made significant changes in the TANF accounting and reporting processes in order to improve financial reporting.”
Auditor: “Contract agreements for the provision of participant services such as education and training lacked evidence that contract terms had been performed even though contract payments had been made.”
Tribal officials: “The Tribal Council has set up a committee to address the revisions and changes recommended to some of the tribe's existing policies and procedures.”
2003
Auditor: “Neither the case managers nor the case files could define either how much has been paid out to a specific participant over time or under which allowable criteria the payments were being made.”
Tribal officials: Stated they had formed a new compliance department and hired a compliance director. “This function also includes the responsibility to insure that all expenditures for program participants are well-documented, eligible, and allowable under TANF. All participant expenditures are reviewed by this department prior to payment.”
Auditor: “Contract agreements for the provision of participant services such as education and training lacked evidence that contract terms had been performed even though contract payments had been made.”
Tribal officials: “The TANF program is required to abide by the tribe's contracting policies ... Payment requests must be accompanied by proof of properly executed contract and verification of services/deliverables received or they will not be processed.”
2004
Auditor: “Weaknesses in internal control have prevented the tribe's accounting department from preparing reliable financial statements and federal reports, maintaining accountability over assets, and demonstrating compliance with laws, regulations and other compliance requirements.”
Tribal officials: Cited a reorganized operating structure for direct oversight of the welfare program by tribal administration. Officials also cited hindrances to financial reporting due to use of two accounting software programs, and stated they were undertaking the selection of a “single software solution.”
Tribal officials also stated they had “retained qualified accounting personnel to manage its fiscal operations” and had “developed more formal policies and procedures in the accounting area.”
Auditor: “It does not appear as if the case managers could reliably control or monitor how much was paid to, and on behalf of, individual clients over time.”
Tribal officials: Stated that they had implemented more formal policies and procedures and strengthened controls over program participant records.
Auditor: “Some TANF expenditures examined during our audit lacked sufficient supporting documentation to corroborate the performance and delivery of goods and services associated with these expenditures.”
Tribal officials: Stated that they had implemented formal policies and procedures in the accounting area, including the adoption of internal control policies.
2005
Auditor: “Management did not implement sufficient internal control policies and procedures to ensure that transactions were properly accounted for and recorded and general ledgers were reconciled ... We recommend the tribe retain qualified accounting personnel to manage fiscal operations...”
Tribal officials: Stated that they had made “significant changes to key staff” in the fourth quarter of the fiscal year, including a new chief financial officer, controller and payroll manager.
Auditor: “It does not appear as if the case managers could reliably control or monitor how much was paid to, and on behalf of, individual clients over time.”
Tribal officials: Stated that they were hampered by “multiple systems used to capture various TANF data,” and that they were upgrading to a single software system that would adequately track all services and expenditures.
2006
Auditor: “The financial statements are materially misstated ... The tribe's fiscal department lacks adequate supervision and training to process expenditures correctly ... We recommend that the tribe implement controls that would encourage greater accuracy of the accounting records.”
Auditor also recommended “changing accounting software so that TANF and the tribe are using the same accounting software.”
Tribal officials: “The tribe is implementing controls to assure that all supporting documentation is on file to support any transaction.”
2007
Auditor: “The TANF program is not in compliance with grant requirements ... A lack of proper record-keeping existed over the procurement of goods and services for the fiscal year. The auditor found it difficult to locate supporting documentation ...”
Tribal officials: Announced the hiring of a new director of property and asset management with years of experience, and the centralization of purchasing and purchase-tracking.
Auditor: “Property management records cannot be produced for the end of the fiscal year under audit.”
Tribal officials: Again noted the hiring of a new director of property and asset management. “The primary duty of this position is to address the control and manage the records of all tribal and organizational properties and assets.”
Auditor: “In performing a test of client eligibility, three client files were not provided to the auditor ... Either the client files do not exist or the filing system prevented their retrieval ... No client should receive direct benefits without the proper support of eligibility.”
Tribal officials: “Management is currently implementing an electronic files access system which will enable remote access to any file from any site.”
2008
Auditor: “The financial statements are materially misstated ... There was a lack of qualified accounting staff mixed with high turnover during the fiscal year ... The tribe should do a complete overhaul of the fiscal department's policies and procedures.”
Tribal officials: “Effective mid-Fiscal Year 2009 all bank accounts have been reconciled on a monthly basis. Effective Fiscal Year 2010 all other balance sheet accounts will be reconciled by staff accountants and reviewed by finance and accounting manager.”
