Office of Contracts and Grants: Property Management (25 CFR 900.51) The Proposed Rule requires that Nahat'a' Dziil Chapter put in place a system for property management. The chapter may use the Navajo Nation's system or, with tribal approval, its own system, provided that it meets the Proposed Rule's requirements. Summarizing these: The chapter's property management system must account for all property turned over to the chapter by the federal government or purchased with contract funds. It must contain requirements for use, care, maintenance and disposal of property. It must manage all "personal property" which cost more than $5,000; all "sensitive property"; and all real property (buildings and land). It must maintain records describing all property, including serial or ID number, source of property, titleholder, acquisition date, cost, share of federal participation in the cost, location, use and condition of the property. It should also record the date and method of disposal, and the sale price, if any. That means that records should be kept after property is disposed of. It must have internal controls including periodic inventory of property, loss/damage prevention, and oversight to make certain property is used for its intended purpose. It must also keep records and implement management procedures for federally-owned property which is used by the chapter. These records and procedures must meet additional requirements outlined in 25 CFR 900.58-60. If the Indian tribe or tribal organization chooses not to take title to property furnished by the government or acquired with contract funds, title to -the property remains vested in the Secretary. A list of Federally-owned property to be used under the contract shall be included in the contract. $900.58 Do the same accountability and control procedures described above apply to Federal property? Yes, except that requirements for the inventory and disposal of Federal property are different. $900.59 How are the Inventory requirements for Federal property different than for tribal property? There are three additional requirements: (a) The Indian or tribal organization shall conduct a physical inventory of the Federally-owned property and reconcile the results with the Indian tribe or tribal organization's property records annually rather than every 2 years; (b) within 90 days following the end of an annual funding agreement, the Indian tribe or tribal organization shall certify and submit to the Secretary an annual inventory of all Federally-owned real and personal property used in the contracted program; and (c) the inventory shall report any increase or decrease of $5,000 or more in the value of any item of real property. $900.60 How does an Indian tribe or tribal organization dispose of Federal property? The Indian tribe or tribal organization shall report to the Secretary in writing any Federally-owned personal property that is worn out, lost, stolen, damaged beyond repair, or no longer needed for the performance of the contract. (a) The Indian tribe or tribal organization shall state whether the Indian tribe or tribal organization wants to dispose of or return the property. (b) If the Secretary does not respond within 60 days: (1) the Indian tribe or tribal organization may dispose of the property as it sees fit and inform the Secretary of the disposal; or (2) the Indian tribe or tribal organization may return the property to the Secretary, who shall accept transfer, custody, control, and responsibility for the property (together with all associated costs). (a) where title vests in the Indian tribe, in accordance with tribal law and procedures; or (b) in the case of a tribal organization, according to the internal property procedures of the tribal organization. $900.52 What type of property is the property management system required to track? The property management system of the Indian tribe or tribal organization shall track: (a) personal property with an acquisition value in excess of $5,000 per item; (b) sensitive property; and (c) real property provided by the Secretary for use under the contract. $900.53 What kind of records shall the property management system maintain? The property management system shall maintain records that accurately describe the property, including any serial number or other identification number. These records should contain information such as the source, titleholder, acquisition date, cost, share of Federal participation in the cost, location, use and condition of the property, and the date of disposal and sale price, if any. $900.54 Should the property management system prescribe internal controls? Yes. Effective internal controls should include procedures: (a) for the conduct of periodic inventories; (b) to prevent loss or damage to property; and (c) to ensure that property is used for an Indian tribe or tribal organization's self-determination contract(s) until the property is declared excess to the needs of the contract consistent with the Indian tribe or tribal organization's property management system. $900.55 What are the standards for Inventories? A physical inventory should be conducted at least once every 2 years. The results of the inventory shall be reconciled with the Indian tribe or tribal organization's internal property and accounting records. $900.56 What maintenance is required for property? Required maintenance includes the performance of actions necessary to keep the property in good working condition, the procedures recommended by equipment manufacturers, and steps necessary to protect the interests of the contractor and the Secretary in any express warranties or guarantees covering the property. Office of Contracts and Grants: Personnel The Proposed Rule is silent on personnel matters. Section 7 of the Act as amended exempts tribes or tribal organizations (such as Nahat'a' Dziil Chapter) from the requirement to pay Davis-Bacon wages. Subcontractors, however, must pay Davis-Bacon wages. Nahat'a Dziil Chapter may adopt the tribe's personnel procedures and manual. For the sake of efficiency the chapter must secure approval from the Navajo Nation for flexibility develop job descriptions and rates of compensation. OCG will need skilled personnel to develop, manage and renew contracts, meet reporting requirements, and ensure contract performance. The minimum staffing level should include: Executive Director, Administrative Assistant, Accountant. Planner and Secretary. Office of Contracts and Grants: Reporting Requirements (25 CFR 900.65-8) Nahat'a' Dziil Chapter must report to the Secretary of Interior. What exact reporting requirements will be put in place is a matter for negotiation between the U.S. and the chapter. The Proposed Rule provides that reporting requirements will not exceed the chapter's ability to meet them. In the past, reporting requirements have often been a problem. Excessive reporting diverts staff resources from real work. Reasonable reporting procedures should be developed for inclusion in the chapter's 638 grant application. The model contract developed by the Secretary (see Appendix ____) provides that the BIA or other federal agency having oversight may make one visit to monitor contract performance (more if the chapter agrees, or the “appropriate official” determines there may be problems with contract performance). The Act itself requires that contractors submit to the Secretary a single-agency audit report in conformance with chapter Title 31, chapter 75 of the U.S. Code. Office of Contracts and Grants: Public Liability If Nahat'a' Dziil Chapter assumes responsibility for services now provided by ONHIR it will also assume ONHIR's public liability. ONHIR is self-insured - that is, it pays claims out of its own funds. The chapter will include as an allowable cost (see OMB Circular A-87) in its contracts the cost of public liability insurance appropriate to the types of services contracted, vehicles and real property acquired or used, and other relevant considerations. By contracting ONHIR programs, Nahat’a' Dziil Chapter will not relieve the federal government of any of its trust responsibilities. V. CONTRACT PROGRAMS: So far as possible, Nahat'a' Dziil Chapter will retain and continue, insofar as possible ONHIR's present staff, organization, procedures and lines of authority. These programs will be administered under the authority of OCG. Program directors will report directly to the OCG Executive Director. Such Navajo Nation programs and services as are assumed by Nahat`a` Dziil Chapter will be incorporated under the administration of the appropriate 638 contract program, with due respect for the allowable costs provisions of OMB Circular A-87. In the material submitted to us by ONHIR (Tim Varner letter of Feb. 20, 1996), the "New Lands Branch" of ONHIR's organization is charted as a single unit. “New Lands" budget is broken down for FY 1994, 1995 and part of 1996. Based on this letter and other materials received from ONHIR, the following organization chart and program outlines were developed. ONHIR indicated a total of 36 staff working in the New Lands Branch, with a total budget for Fiscal Years 1994 and 1995 of $11,475,980 and $7,471,239. Budget expenditures for the first four months of FY 1996 are $1, 345,832 (projected $4,037,496). Funding level decreases reflect diminishing levels of expenditure for land and infrastructure development and a drastic reduction in grants and agreements. |