In previous General membership meetings I indicated the tribe would conduct a tribal wide audit that has not occurred since 2006. It was stated by the Tribal Governing Board that if the audit revealed serious deficiencies or possible fraud, a forensic audit would be ordered. The Tribal Governing Board followed through with that pledge.
On Friday May 24th the Tribal Council was provided a briefing by the auditors of Midwest Professionals who indicated they have reason to believe Tribal Governing Board signatures were copied and used. As a result of the discovery, the auditors of Midwest Professionals have recommended a forensic audit. By reviewing documents it is assumed the copied signatures were used to conduct unauthorized money transfers of federal and non-federal funds to other accounts and the forensic audit will reveal where funds went.
The auditors were requested to examine money transfer documents after photocopies of Tribal Council signatures were discovered taped inside of a file cabinet of the former executive directors office. A copy of the letter from Midwest Professionals is in this newsletter (also located below). The Tribe is now soliciting bids from firms that specialize in this type of forensic audit. In addition we are conducting a professional search for a Chief Financial Officer for the tribe, this will take about four months to complete.
We have serious concerns with regard to past money management practices of the tribe that must be addressed. It's a fact! A tribal wide audit was not performed in seven years. And, because of the problems associated with the Tribe's money management practices and the serious financial internal control issues, the tribe had been operating in restricted status with the Bureau of Indian Affairs for many years. Over the years the tribe lost in excess of one million dollars of bounced check charges of unauthorized transfer of funds. I use the word “unauthorized” because the funds were often transferred using photocopied signatures. The forensic audit will reveal where the funds went. The former Chief Financial Officer resigned in 2012 under frustration that he was not provided the authority to carry out best practice accounting principles.
Bad accounting practices of the past cannot be continued nor tolerated, however we are taking appropriate steps to address the issue and bringing back financial stability to the tribe. To date, we made considerable progress in restoring the financial health of the Tribe.
With regard to the Tribal Health Center, assumptions are made by the Clinic Finance Office that the tribe owes 1.2 million to the clinic for funds that were sent over in prior years. However, after detailed review by the former interim CFO a CPA from the Clifton Larson Allen Firm specified the funds are not in the tribal accounts and were presumed to be dispersed into other accounts to cover shortages. The forensic audit will uncover this discrepancy as well. This problem is also part of the same problem which involves the photocopied TGB signatures on unauthorized tribal government funds transfer forms. I will not belabor this matter. However, there are many rumors now that the election is near and issues and facts must be placed on the table for open review.
With regard to the clinic operations, I will summarize where we are at:
Following the termination of the doctor, (the former Chief Medical Officer), for excessive drug prescribing, much unrest evolved at the clinic and we are taking steps to provide stable operations. The former Health Director (gaiashkibos) was placed on paid investigative leave by the now defunct health board. The investigation revealed that no wrong-doing was determined to have been done by the former Health Director, however his contract expired and it was not renewed. The Governing Board subsequently contracted with him to undertake a capital campaign for a new 35,000 sq. ft. clinic and help improve 3rd party billing.
A New Health Director was hired and assumes his position on June 4th. His name is Gregg Duffek. He will be introduced in the July issue of the Newsletter. The new physician was recently hired and he will start part-time service in June and come on board full time in July as the Chief Medical Officer. Another doctor will begin his full time service in August. Three other temporary doctors will serve the clinic during June and July. In lieu of a health board, the clinic will have a professional medical advisory team to assist in providing Best Practice Clinic Operations.
On Memorial Day a great turn out of tribal members and guests celebrated the second phase dedication of the Veterans Memorial. A special tribute was paid to the World War II Veterans who occupied the front row during the celebration. I express my sincere appreciation to the planning team and Sara Balbin, including LCO Development for a great job. The final dedication will be held on Veterans Day in November.
