supporting regulation

Bureau of Indian Affairs, Interior, IHS, HHS
adopted in these regulations, those expressly required or modified by the
Act, and those negotiated and agreed
to in a self-determination contract.
§ 900.38 Do these standards apply to
the subcontractors of an Indian
tribe or tribal organization carrying out a self-determination contract?
An Indian tribe or tribal organization
may require that some or all of the
standards in this subpart be imposed
upon its subcontractors when carrying
out a self-determination contract.
§ 900.39 What is the difference between a standard and a system?
(a) Standards are the minimum baseline requirements for the performance
of an activity. Standards establish the
‘‘what’’ that an activity should accomplish.
(b) Systems are the procedural mechanisms and processes for the day-today conduct of an activity. Systems
are ‘‘how’’ the activity will be accomplished.
§ 900.40 When are Indian tribe or tribal organization management standards and management systems evaluated?
(a) Management standards are evaluated by the Secretary when the Indian
tribe or tribal organization submits an
initial contract proposal.
(b) Management systems are evaluated by an independent auditor
through the annual single agency audit
report that is required by the Act and
OMB Circular A–128.
§ 900.41 How long must an Indian tribe
or tribal organization keep management system records?
The Indian tribe or tribal organization must retain financial, procurement and property records for the minimum periods described below. Electronic, magnetic or photographic
records may be substituted for hard
copies.
(a)
Financial
records.
Financial
records include documentation of supporting costs incurred under the contract. These records must be retained
for three years from the date of submission of the single audit report to
the Secretary.

§ 900.44
(b) Procurement records. Procurement
records include solicitations, purchase
orders, contracts, payment histories
and records applicable of significant
decisions. These records must be retained for three years after the Indian
tribe or tribal organization or subcontractors make final payment and
all other pending matters are closed.
(c) Property management records. Property management records of real and
personal property transactions must be
retained for three years from the date
of disposition, replacement, or transfer.
(d) Litigation, audit exceptions and
claims. Records pertaining to any litigation, audit exceptions or claims requiring management systems data
must be retained until the action has
been completed.
STANDARDS FOR FINANCIAL
MANAGEMENT SYSTEMS
§ 900.42 What are the general financial
management system standards that
apply to an Indian tribe carrying
out a self-determination contract?
An Indian tribe shall expend and account for contract funds in accordance
with all applicable tribal laws, regulations, and procedures.
§ 900.43 What are the general financial
management system standards that
apply to a tribal organization carrying out a self-determination contract?
A tribal organization shall expend
and account for contract funds in accordance with the procedures of the
tribal organization.
§ 900.44 What minimum general standards apply to all Indian tribe or
tribal organization financial management systems when carrying out
a self-determination contract?
The fiscal control and accounting
procedures of an Indian tribe or tribal
organization shall be sufficient to:
(a) Permit preparation of reports required by a self-determination contract
and the Act; and
(b) Permit the tracing of contract
funds to a level of expenditure adequate to establish that they have not
been used in violation of any restrictions or prohibitions contained in any

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§ 900.45

25 CFR Ch. V (4–1–06 Edition)

statute that applies to the self-determination contract.
§ 900.45 What specific minimum requirements shall an Indian tribe or
tribal organization’s financial management system contain to meet
these standards?
An Indian tribe or tribal organization’s financial management system
shall include provisions for the following seven elements.
(a) Financial reports. The financial
management system shall provide for
accurate, current, and complete disclosure of the financial results of self-determination contract activities. This
includes providing the Secretary a
completed Financial Status Report, SF
269A, as negotiated and agreed to in
the self-determination contract.
(b) Accounting records. The financial
management system shall maintain
records sufficiently detailed to identify
the source and application of self-determination contract funds received by
the Indian tribe or tribal organization.
The system shall contain sufficient information to identify contract awards,
obligations and unobligated balances,
assets, liabilities, outlays, or expenditures and income.
(c) Internal controls. The financial
management system shall maintain effective control and accountability for
all self-determination contract funds

received and for all Federal real property, personal property, and other assets furnished for use by the Indian
tribe or tribal organization under the
self-determination contract.
(d) Budget controls. The financial
management system shall permit the
comparison of actual expenditures or
outlays with the amounts budgeted by
the Indian tribe or tribal organization
for each self-determination contract.
(e) Allowable costs. The financial management system shall be sufficient to
determine the reasonableness, allowability, and allocability of self-determination contract costs based upon the
terms of the self-determination contract and the Indian tribe or tribal organization’s applicable OMB cost principles, as amended by the Act and
these regulations. (The following chart
lists certain OMB Circulars and suggests the entities that may use each,
but the final selection of the applicable
circular may differ from those shown,
as agreed to by the Indian tribe or tribal organization and the Secretary.
Agreements between an Indian tribe or
tribal organization and the Secretary
currently in place do not require renegotiation.) Copies of these circulars
are available from the Executive Office
of the President, Publications Service,
725 17th Street N. W., Washington, D. C.
20503.

Type of tribal organization

Applicable OMB cost circular

Tribal Government ...................................................................................

A–87, ‘‘Cost Principles for State, Local and Indian Tribal Governments.’’
A–122, ‘‘Cost Principles for Non-Profit Organizations.’’

Tribal private non-profit other than: (1) an institution of higher education, (2) a hospital, or (3) an organization named in OMB Circular
A–122 as not subject to that circular.
Tribal educational institution ....................................................................

(f) Source documentation. The financial management system shall contain
accounting records that are supported
by source documentation, e.g., canceled checks, paid bills, payroll
records, time and attendance records,
contract award documents, purchase
orders, and other primary records that
support self-determination contract
fund expenditures.
(g) Cash management. The financial
management system shall provide for
accurate, current, and complete disclosure of cash revenues disbursements,

A–21, ‘‘Cost Principles for Educational Institutions.’’

cash-on-hand balances, and obligations
by source and application for each Indian tribe or tribal organization, and
subcontractor if applicable, so that
complete and accurate cash transactions may be prepared as required by
the self-determination contract.

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