Montana Tribe Could Lose Stimulus Funds Due to Accounting Practices

The Little Shell Tribe in Montana could lose about $400,000 in federal stimulus funds due to concerns the state’s Department of Commerce has over the tribe’s accounting practices, as reported by the Great Falls Tribune on Feb. 11.

The tribe was supposed to receive $617,000 in stimulus funds. The money it may not be getting was to be used to renovate the tribe's Great Falls offices and to build a new office in Havre.

The funds now may go into the state's general fund, which could use it, or it could be re-distributed among other tribes, the paper said.

The tribe is still is eligible for the remaining $200,000, but it must show improvements in its accounting procedures.

Nisqually Use Stimulus Funds to Clean Puget Sound

Here's a story in the New York Times about the Nisqually Tribe's $4.6 million stimulus-financed effort to clean up Puget Sound. The Tribe has formed a dive team that removes fishing nets that were lost or discarded decades ago but can still kill fish, birds and other animals. Check out the photos too.

Indirect Cost Alert – ARRA Awards do Include Overhead Costs

There has been some confusion over the ability of tribes to collect indirect costs from funding received under the American Recovery and Reinvestment Act (ARRA). Contrary to previous statements made to tribal leaders, overhead costs may be covered with ARRA funds. Even though the contract support costs will not be added onto the ARRA awards, tribes can apply their approved IDC rate to these funds to determine how much of the money can be allocated for overhead. However, if you receive ARRA funding through an existing or new program which places a cap on indirect costs, then the cap will still apply.

Here is a link to a document from Health and Human Services that might prove helpful. For more information, contact Richard Phelps, 1-800-992-4489, extension 101.

Recovery.gov Adds Tribal Component

You can now track Indian Country’s economic recovery progress on Recovery.gov, which recently added two areas devoted specifically to tribal governments. The link to tribal resources lists the specific federal agency programs dedicated to tribal governments or for which tribal applicants are eligible. Tribal news tracks the progress in distributing funds and in making money available for Indian Country.

Indirect Cost Rates and the Stimulus Funds

Increased funding from the Indian Health Service and the Bureau of Indian Affairs, together with the inflow of money from the stimulus package, could mean that for the first time in decades, tribal governments may be able to recover the total amount of the costs associated with the administration of federal programs under P.L. 93-638 contracts. 

The Indian Health Service is slated for a 13 percent increase in funding to cover contract support costs and the Bureau of Indian Affairs will receive a significant increase in funding for this item as well. These budget increases and the increased availability of federal funds from the stimulus package, present tribal governments with a tremendous opportunity and challenge.

An inflow of funds from the stimulus bill could expand the funding base for tribes significantly, thereby driving down the indirect cost rate by as much as 30 to 40 percent.  While increased funding is a great development for Indian Country, the consequences of a reduced indirect cost rate could be quite negative unless the additional overhead costs of administering these new programs are taken into consideration.

Each organization should be conducting an analysis as to how much of the stimulus funding is being devoted to construction as opposed to services. As a general rule construction funds carry a reduced amount of overhead burden, because much of the work is contracted out. This might not be the case if the tribe has its own construction company. In that case the indirect costs associated with the project can be high as the general contractor (the tribe) must incur the same overhead as other contractors.

For more information on indirect costs and how the stimulus package may impact your rate, contact Richard Phelps.

Still Time to Get Stimulus Money

Almost every day, a new American Recovery and Reinvestment Act funding opportunity notice is issued. Coming almost as quickly are the deadlines to apply. In fact, quite a few have come and gone, and the federal agencies setting them have already announced the award recipients.

How can tribes keep up? There is $787 billion in economic stimulus money being handed out, and they do not want to miss their shot at getting some of it. Read the rest at American Indian Report.

$17 million Allocated for Tribal Transit Program

Last month the Department of Transportation allocated $17 million in federal funding under the American Recovery and Reinvestment Act, 2009 for the Federal Transit Administration’s Tribal Transit Program.

The ARRA tribal transit funds will provide grants to Indian tribes for capital expenditures including transit equipment and facilities.  A notice soliciting project proposals was published March 23 in the Federal Register.  The notice includes application procedures, the criteria that FTA will utilize to select projects, and grant terms, conditions, and reporting requirements.

Tribes will have 60 days to submit project proposals.  The Federal Register notice can be found at:http://www.fta.dot.gov/laws/leg_reg_federal_register.html.

Once projects are selected and funding is awarded, tribal recipients must obligate funds by September 30, 2010.  Interested parties are encouraged to contact the nearest FTA Regional Office for additional information on the ARRA Tribal Transit Program.  A contact list of FTA regional offices may be found at http://www.fta.dot.gov/.

BIA Roads Program in Alaska “Rife with Mismanagement”; Poor Candidate for Stimulus Funds

Interior Inspector General Earl Devaney is warning Interior Department officials about distributing stimulus money to the Bureau of Indian Affairs Alaska Region Indian Reservation Roads Program. 

“We found that the Alaska region’s inattention to expenditures and failure to manage its programs has repeatedly jeopardized the success of the Alaskan Native community roads projects and caused millions of dollars to be wasted or unaccounted for,” Devaney wrote in is cover letter of a Flash Report. 

Among the findings in the report:

ü      Only $3 to $4 million of the $230 million in road projects administered by the Alaska BIA each year have any physical oversight or verification that work is completed.

ü      An Alaska Native community advanced more than $2 million to build and repair critical road areas used the money instead to perform unauthorized work on another road that was deemed unnecessary.

ü      Some wage-grade employees are earning more than $100,000 a year – far above the maximum pay for their grade -- without explanation 

$2.5 Billion for Indian Country in Stimulus Package

The American Recovery and Reinvestment Act approved by Congress Friday includes approximately $2.5 billion to create jobs and economic opportunity in Indian Country. Below is a summary of Indian Country provisions.

INDIAN HEALTH CARE

· Indian Health Facilities – $415 million

o New construction - $227 million

o Maintenance and improvements - $100 million

o Sanitation Facilities - $68 million

o Medical Equipment - $20 million

· Indian Health Services - Health Information Technology - $85 million

BUREAU OF INDIAN AFFAIRS

· BIA Office of Indian Programs - $40 million (housing improvement and workforce & training)

· BIA Construction - $450 million (schools, roads repair, jails, irrigation, dams)

PUBLIC SAFETY AND JUSTICE

· Department of Justice Grants (DOJ) - Indian Jails construction - $225 million (coordinate with BIA, consider violent crime rates and detention space needs)

· DOJ Community Oriented Policing Services – tribes eligible to compete - $1 billion program

· DOJ Violence Against Women Prosecution Grants - $22.5 million (result of a 10% tribal set-aside)

TRIBAL ROADS AND BRIDGES

· Indian Reservation Roads (DOT) – $310 million

· Tribal Transit Set-Aside (DOT) – $17.25 million

INDIAN HOUSING

· Indian Housing block grants (HUD) – $510 million (conference note to use funding to rehabilitate and improve energy efficiency in houses maintained by Native American housing programs)

EDUCATION

· Head Start - $10 million (tribal set-aside)

· Early Head Start - tribes eligible for a portion of the $1.1 billion program

· Special Education (IDEA) – tribes eligible for a portion of the $12.2 billion program

· Impact Aid – language urges targeted funding to military and Indian reservations from the $100 million program

ENERGY AND WATER

· Bureau of Reclamation Tribal Water Projects – $60 million for water intake and treatment facilities

· Safe Drinking and Clean Water Revolving Funds – $120 million (permissive set-aside)

· Tribal Energy Efficiency and Conservation Black Grants - $56 million (result of a 2% tribal set-aside)

· Weatherization Assistance Program – tribes are eligible to compete for competitive grants under the $5 billion program

OTHER PROGRAMS

· Indian Reservation Food Distribution (USDA) – $5 million

· Native Elder Nutrition (DHHS) - $3 million (Older Americans Act, Title IV)

· BIA Indian Loan Guarantee Program - $10 million

· Tribal Community Development Financial Institutions (Treasury) – $10 million

BONDING AUTHORITY FOR TRIBAL GOVERNMENTS

· Tribal economic development tax-exempt bonds - $2 billion in bonding authority

· Qualified Indian school construction bonds - $400 million in bonding authority

OTHER NOTES

· Bill language permits Indian Tribes to contract and compact to build projects and create reservation jobs pursuant to the Indian Self-Determination and Self-Governance Acts

NCAI Seeks Infrastructure Funding for Tribal Governments in Economic Stimulus Package

The National Congress of American Indians is asking that President-elect Barrack Obama’s economic stimulus package include $5.4 billion specifically for infra-structure needs in Indian Country. NCAI is requesting that tribal governments be treated the same as state governments, in that money would be distributed directly to them and that they would be allowed access to capital. 

 “A tribal provision in the economic plan could mean funding for Indian health care programs, schools and job training projects,” said NCAI President Joe A. Garcia. “Indian Country needs a chance to develop the systems to grow their local economies and Indian people deserve the opportunity for a secure future.” 

Currently federal rules and regulations limit tribal government’s access to capital, expanding the use of tax-exempt bonds could leverage federal spending on infrastructure and economic development activities on reservations. A tribal economic recovery component could also expand loans and surety bonding for Indian businesses. 

Obama’s economic stimulus package, expected to be introduced soon, will include $300 billion in tax cuts and about $500 billion in spending. 

Don’t miss Falmouth Institute’s upcoming Indian Country Construction Conference for an up-to-date overview of how tribal governments can tap into the infrastructure funds available for Indian Country in the economic stimulus package.