Since the last report, the Finance Department has been busy getting ready for the 2012 audit, the upcoming tribal forensic audit for 2005-2011, inputting the 2013 budgets, and conducting the close-out functions for 2012. There are a number of items that I feel that the tribal membership would like to have information on so this report will touch on some of the critical areas to highlight the progress we have achieved in maintaining careful oversight of the tribal finances, as well as a new program that will help our tribal elders.
Tribal Settlement Fund
I am pleased and proud to inform our tribal members that our Settlement Fund has been growing at a consistent rate over the past two years. As of March 15, 2013, we have approximately $51,836,453 in the Settlement Fund (see chart 1). In comparison, on September 30, 2010, the Settlement Fund was about $46,607,988 - this represents an increase of a little more than $5 million dollars or 11.2%. In Chart 2, we have the last official report from Cambridge Associates showing the ending balance of $49,930,502 as of 12/31/2013 - we are currently about $2 million dollars higher (or 3.8%) then that values as of March 15th. Myself and the Council are in regular contact and coordination with Cambridge Associates to maximum the Settlement Fund and minimize the risks from volatility in the stock market.
Another item that we have implemented in the last two years as been the minor’s per capita statements. These statements provide information to parent/guardians of tribal member minors on the current valuation of their trust fund. The statements provide a 2-year snapshot of the activity of the period, including any additions (from per capita payment to earned interest), deductions (approved early per capita distributions. This trust fund is accumulated from per capita payment held in trust until they are under 18 years of age and then distributed in accordance with the Settlement Fund Plan. The next set of statement will be mailed out in April 2013 to parents/guardians.
Tribal Financial Management Policy
Last month, I presented to the Council a new financial management policy & procedures manual that was adopted. This policy has been in development and review over the past 18 months. The prior policy had been adopted in 1994 and hadn’t seen any major updates since then despite it being listed as an audit finding for a number of years. The new policy covers area such as establishing financial procedures for various transactions, management of accounts, grants management, procurement and Indian Preference in contracting, payroll/travel management, and provisions establishing ethical conduct/standards for financial activities of the Tribe.
The new policy went through lengthy drafts and also underwent a legal review and a complete analysis by a certified accounting firm to ensure compliance with federal requirements and Generally Accepted Accounting Principles (GAAP). Copies of the policy are available to tribal members upon request and will also be available on the Tribe’s website once the new site is designed and launched.
Tribe’s Financial Status
In addition to the Settlement Fund account, the Tribe maintains and oversees a number of other accounts which funds large segments of the tribal government programs. As of the most recent reporting period, the following are the banks accounts of the Tribe and the ending balance as of 2/28/2013:
·General Fund $378,768.51
·Tax Revenue Funds $544,058.11
·Grants Account $2,137,874.87
·Tribal Resources $135,821.78
·Clinic Third Party $141,703.40
·BIA HIP Program $192,900.00
·BIA Wetlands Grant $19,383.13
·TERO Program $17,226.17
·Scholarship Trust* $5,011.61
·Per Capita Account** $126,894.11
·Payroll Account** $7,370.64
Total $3,707,012.33
* Denotes that this is from a one-time payment received from Terra-Gen geothermal company for consultation on potential project back in 2011.** Denotes that these are pass-thru account in which money is added into during certain period. Payroll is deposited into every two weeks to cover employee’s payroll for that period. Per Capita is distributed in annually for the regular per capita distributions.
It must be noted that these balance change regularly as funds come into the Tribe from internal and external sources (i.e., draw downs from federal/state contracts/grants), as well as through transfers between accounts (i.e., transfers to the payroll bank account to cover salary costs for each pay period).
Tribal Senior Emergency Assistance Fund
One of the items that I am most excited to announce to our tribal members is that the Council approved a program that I proposed to assist members of the Tribe who are 60 years of age or older with costs associated with an unforeseen health, safety, or home repair that would result in the tribal elder being without the necessities needed to maintain a healthy home environment or healthy quality of life. The procedures, financial need determination, and accountability procedures are as follows - this copied in its entirety from Section 18.25 of the Fallon Paiute-Shoshone Tribe’s Financial Management Policy & Procedures Manual:
Procedures. To qualify for this assistance, a tribal elder must complete the following application process:
1.Fill out the Tribal Elder Emergency Assistance Application form and submit this to the Tribe’s Social Services Department for verification and process. This application documents that the tribal elder has a financial hardship and have exhausted all other avenues of assistance available to them before approaching the Tribe for assistance. The Social Services Department will assist eligible Tribal Elders by providing the application in person or through the mail and/or assisting them with completion of the application. The applicant (or legal custodian) will complete and sign the application, provide the required tax/income documentation, and attach at least three (3) current cost estimates for the home repair or the assistance being requested (i.e., price quotes, bids, etc.).
2.Upon receipt by the Social Services Department, the applicant's enrollment will be verified. After verification and assessment is done to ensure that all requirements are met, the application will be processed to the Office of the Tribal Secretary who will provide the application to the Fallon Business Council for action at their next regular meeting. If the next meeting is to be held beyond 72 hours from the receipt of the application, the Tribal Secretary may conduct a Council poll of all Council members, depending on the urgency of the request. Applicants will be notified by mail within ten (10) working days of the Council's decision by the Tribal Secretary regarding the outcome of their request.
3.If the application is approved, the Tribal Secretary will submit a purchase requisition (purchase order, check request, or credit card use forms) for payment to the Tribal Treasurer for processing in the amount approved by the Council. The funding amounts under policy are based upon the cost estimates provided with the application and in accordance with the following schedule:
·Requests up to $500: Funded at 100% of requested costs
·Requests between $500 - $1,000: Funded at 75% of costs up to maximum of $500
·Requests over $1,000: Funded at 50% of costs up to maximum of $750
4.The Tribe will not pay for items purchased prior to approval of this request. An annual allocation of funds will be approved by the Council for this program (see Section 18.10). All payments through this program will be issued directly to the vendor only.
Financial Need Verification. The Tribal Elder Emergency Assistance Application form will be completed by the applicant (or legal custodian) or upon a discovery of need reported to the Council or Social Services. The applicant must present written verification of his/her income and other resources available for the previous twelve (12) months and the projected upcoming twelve (12) months or of any other household member that contributes a specified amount on a regular basis to the livelihood of the entire household. In order to verify financial hardship, the tribal elder (or legal custodian) must file:
1.Copies of the previous year's income tax returns, signed and dated by the preparer must be submitted with the application; and
2.All other sources of money/assets must be noted on the application.
Accountability of Use of Funds. For all approved requests, the recipients must submit receipts and/or documentation that the money was used for the intended purpose within 30 days. Failure to use a donation for the purpose represented to the Council will result in one or more of the following consequences:
1.Denial of future donation requests for a period of three (3) years.
2.Required repayment of the donation from any tribal disbursements, including current and future per capita payment distributions.
3.Possible criminal prosecution for the offense of fraud or theft (a crime that includes the act of obtaining money by material misrepresentation).
To apply for this program, you must complete and submit the application to the Tribe’s Social Services Department. They have a copy of the form available for use. The program is available as long as appropriate funds are available. Please note this program is open to all our tribal elders regardless of where they live. In 2014, I would planning submitting a new proposal for the creation of a energy assistance program for all tribal members in the next budget cycle (2014) to help provide some assistance to our members who are struggling to pay for basic utility expense.