The Wind River Tribes Misapplied Federal Funds for the Tribal Transportation Program

We audited the Joint Programs of the Northern Arapaho and Eastern Shoshone Tribes of the Wind River Reservation’s Tribal Transportation Agreement (Agreement No. A13AP00014) with the Bureau of Indian Affairs (BIA) to determine whether: 1) the costs claimed by the Wind River Tribes were allowable, allocable, and reasonable according to applicable Federal laws and regulations and BIA guidelines; and 2) the BIA oversaw the agreement in accordance with applicable Federal laws and regulations and BIA guidelines. We determined costs claimed by the Wind River Tribes on their Tribal Transportation Program were not allocable to Agreement No. A13P00014. This occurred because the Tribes’ accounting system and procedures are not configured to manage Federal funds. As a result, the Wind River Tribes could not support expenses claimed on Agreement No. A13AP00014. We question $6.2 million in costs claimed by the Wind River Tribes—specifically, $3.6 million in unapproved capital expenditures, $2.6 million in indirect costs claimed without an approved indirect cost rate, and $7,422 in unallowable costs. In addition, we determined the BIA did not oversee the agreement in accordance with applicable Federal laws and regulations and BIA guidelines. This occurred because BIA management overseeing the Tribes’ transportation program did not provide staff with sufficient training to fulfill their responsibility to provide oversight and administration to the Tribes since 2013. We made 11 recommendations to help the BIA oversee the Wind River Tribes’ transportation program and resolve questioned costs.