INDIAN ISLAND, Maine — Penobscot Indian Nation Chief Kirk Francis said Monday that many financial issues cited by a recent Department of Justice audit — which raised questions on how the tribe spent nearly $1.19 million in grants — stem from out-of-date accounting procedures.
“What’s important for people to know is all the resources and all the funds in that report are accounted for,” Francis said. “It’s all administrative policy.”
The inspector general audit found $393,480 in questioned, unsupported or unallowable costs in four grants issued through the Office of Justice Programs and Office on Violence Against Women to strengthen services to victims of domestic violence, dating violence, sexual assault and stalking; enhance programs for troubled youth; and to improve the tribal court system.
“We determined that Penobscot Nation’s method for recording expenditures was not reliable,” the 50-page inspector general report stated.
The biggest problem found by the federal agency was the lack of supporting documentation for expenses under $5,000 to ensure they complied with the terms of the grants. Some of the other complaints amounted to missing paperwork or the failure to follow established policies, and the departure of the Penobscot Nation Boys and Girls Club in 2012.
“They should have been treated like consultants,” the chief said of the former program operators.
“A lot of this stuff was in how it was filed,” Francis said. “They [consultants] utilized tribal travel forms for documenting the amount of travel, and they should have used consultant invoices” to differentiate them from tribal employees.
“It’s a lesson learned,” the chief said. Nevertheless, he agreed that improvements are needed.
“We’re working on it,” the chief said. “We’re confident we’re going to get it resolved in very short order.”
The grant funds that were questioned were issued between 2009 and 2014. In September, the Penobscot Nation was awarded $876,889 for its Violence Against Women Tribal Government Program and $307,891 for its Juvenile Healing to Wellness Courts program.
The awards were made through the federal department’s coordinated tribal assistance solicitation, or CTAS, program.
“We have a really good track record here. We were just awarded close to $1 million,” Francis said. “Nobody is in trouble. There was some communication issues and some administrative procedural issues.”
The Office of Justice Programs and Office on Violence Against Women have agreed to work with the Penobscots to rectify the inspector general’s 14 concerns, and the Department of Justice, in turn, has agreed to resolve the recommendations.
“On their end, it’s all resolved,” Francis said. “The [Office of Justice Programs and Office on Violence Against Women] have agreed to work with the tribe to strengthen our policies. We’re working very cooperatively to get them what they need.”
The tribe has 180 days to complete the work.