ENA_Navajo_Escrow_Account_SOW_Audit_05272021_final_1_06022021_1_.docx

Auditing Services for Bureau of Indian Affairs (BIA), Eastern Navajo Agency (ENA) Branch of Natural Resources (BNR), Navajo Escrow Account Statement of Work Background BIA NRO Eastern Navajo Agency requires technical accounting services for developing, completing, reconciliation, and coordination with federal staff for auditing financial data and information for the “ENA BNR Navajo Escrow Account.” The ENA Branch of Natural Resources (ENA BNR) directly manages the escrow account, which is set up through the federal Reston office to collect and maintain grazing fees on a yearly basis. ENA BNR has completed about 50% of an in-house accounting of documents. For Eastern Navajo Agency, ENA BNR staff manages numerous grazing contracts based on about 854 grazing permits.

For proper routing of the funds, ENA BNR does not collect the funds directly but does process the collection of funds through an invoicing system with Lockbox. In general, on a yearly basis, ENA BNR staff invoices about 966 Permittees in November for the upcoming Calendar Year (CY). The payments of grazing fees are required by end of the following January. ENA BNR staff only completes the invoicing and technical guidance to the permittees on the administrative procedures. Grazing fees are collected from different land status in Eastern Navajo which includes tribal trust, allotment, public domain (Bureau of Land Management), possibly State of New Mexico, possibly Navajo Tribal Fee, and government-administered lands.

ENA BNR staff comprises of a Natural Resources Manager, 1 Rangeland Specialist, 2 Natural Resources Specialists, GIS Specialist, Program Support Assistant, and an Office Automation Clerk. Agency line officers include Superintendent and Deputy Superintendent with support from a Program Support Assistant.

In addition, tribal representatives are requesting to have the funds transferred back to the Navajo Nation soon. In transferring the funds back to the Navajo Nation at the appropriate time, the Agency would have the audit completed with all records verified and accounted for.

Objectives The contractor shall furnish all labor, equipment, and required resources to complete the following objectives within 3 months from notice to proceed:

a. Account for all transactions for the Suspense Deposit System (SDS) account entitled as "Navajo Escrow Account" through a detailed accounting ledger from CY2000 to present (CY2021).

b. Organize all receipts or payments into useable tracking sheets. Sub-categories should include land status, year, date, special circumstances, no payments by Permittees on any given year, method of payment, and other information. Broad categories as Allotted Lands, Tribal Trust, and Other Lands.

c. Develop a detailed report on the collection of, deposition of, and accountability of all grazing fees collected under grazing permit contracts situated in Eastern Navajo Agency from CY2000 to present (CY2021).

d. Based on review work, identify specific areas of enhancement for the management of the funding on an ongoing basis.

e. Provide supervisory accounting methods, tools, and recommendations for future management of the funds.

f. Develop program accounting procedures, methods, and tools (i.e., software) for future management of the funds to ensure local accountability.

g. Develop reporting tools for program supervisor and staff to be used for reporting out to Agency line officer management.

Scope The Agency will receive a comprehensive audit of the Navajo Escrow Account to ensure accounting compliance, accountability, and recommendations for future accounting management of the account. The audit would support any decisions on when and how the funds would be used or transferred to an appropriate management fund plan. The contractor shall furnish a comprehensive audit report as a part of the contract work. All tools developed under this contract will be property of BIA ENA unless exempted because of proprietary requirements. However, contractor will refrain from developing tools that require proprietary and other restrictions unless necessary and approved by line officer management.

Tasks Contractor will:

1. Develop work objective schedule (i.e., GANTT) and upon BIA line officer management approval, implement schedule with dates, milestones, reviews, and coordination.

2. Work with ENA BNR staff on obtaining all pertinent documents and data and then to account for all transactions for the SDS account entitled as "Navajo Escrow Account" through a detailed accounting ledger from CY2000 to present (CY2021). In addition, contractor may be required to coordinate on obtaining data and information from the federal Reston office managing the account by working with ENA BNR staff and Agency line officer management.

3. Develop a detailed report on the collection of, deposition of, and accountability of all grazing fees collected under grazing permit contracts situated in Eastern Navajo Agency from CY2000 to present (CY2021).

4. Based on review work, identify specific areas of enhancement for the management of the funding on an ongoing basis.

5. Identify and train on ENA BNR supervisory accounting methods, tools, and recommendations for future management of the funds.

6. Identify and train ENA BNR staff on accounting procedures, methods, and tools (i.e., software) for future management of the funds to ensure local accountability.

7. Identify ENA BNR program reporting to line officer management on all transactions regarding the escrow account. If not, contractor will develop reporting tools and mechanisms for line officer management review and approval.

8. Identify specific communication methods to enhance coordination with the federal Reston office on the management of the account.

9. Identify specific reporting requirements to line officer management on the account to ensure timely and appropriate deposits of the fees collected through the Lockbox system.

10. Identify specific methods of coordination between ENA BNR program staff and Indian Affairs Bureau of Trust Funds Administration (BTFA) staff for accountability and processing of appropriate fees through the Individuals Indian Money (IIM) accounts. BTFA was formerly the Office of Special Trustee.

11. Identify any reporting requirements for the management of account for federal fiscal accounting to ensure federal regulatory compliance and ongoing audit purposes.

12. Develop a fiscal portfolio (i.e., software, dashboard, on-demand accounting, flexible reports, etc.) of the Navajo Escrow account for reporting out to management.

Delivery At the completion of the contract, the contractor will provide to BIA Eastern Navajo Agency the following deliverables:

· report on the findings of the audit and general ledger of all grazing fee transactions.

· set of recommendations on management and program methods, tools, and other related items.

· presentation to Agency line officer management on the findings, reports, and recommendations.

· training on all tools and recommendations.

· reports regarding the account.

· fiscal portfolio for ongoing and future management of the account.

· written and electronic copies of all work products.

· Upon assessment by 6 weeks from Notice to Proceed and with line officer approval, electronic copies of software or electronic tools for recommended use including macros, pivot tables, reporting formats, dashboard, and other.

The written audit report and line officer management presentation will be due 2 weeks before end of contract term.

Security Before arriving onsite, Contractor will coordinate with and get approval from the ENA Safety Officer for onsite work to ensure COVID-19 precautions and guidelines for onsite work and engagement with federal staff. The contractor may use the Employee Relations Center (ERC) which is situated onsite and available for the contractor to use during contract term. The ERC is a modular building with restrooms and big space for use.

Travel BIA Eastern Navajo Agency is in Crownpoint, NM. All federal records are housed at the Agency. Contractor would need to travel to and from the Agency offices to complete the contract work. All pertinent offices are located at Eastern Navajo Agency for any coordination or related activities.

Special Material Requirements The contracted auditors will need access to all federal data and information situated at the Agency offices. The auditors are required to be certified as federal contractors who are authorized to access federal data, records, and information.

Other Unique Requirements Compliance with Navajo Nation COVID-19 guidelines.

Place of Performance The contractor will perform the contract work and provide deliverables at Eastern Navajo Agency, Crownpoint, New Mexico. The contractor may use the Employee Relations Center at the Agency. The contractor would need to submit a written request to use the ERC.

Period of Performance The contract period of performance will be for 3 months, starting on July 1, 2021 and be completed by September 30, 2021. The written report and management presentation will be due 2 weeks before the end of contract term.