F inancial Management Office of Self-Governance Financial Responsibilities and IT Support Functions Arlene Brown, Financial and Systems Manager August 2006 This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these action items during your presentation In Slide Show, click on the right mouse button Select “Meeting Minder” Select the “Action Items” tab Type in action items as they come up Click OK to dismiss this box This will automatically create an Action Item slide at the end of your presentation with your points entered.

OVERVIEW Financial Administration Transferred to OSG SGDB and FFS Support  Budget Management  Accounting Management  Compact Management IT Management What Does SGDB Support? Why SGDB $100,000 One-Time Request? What Is Included in SGDB $100,000 Redevelopment? SGDB Alternatives and Requirements APPENDIX – SGDB and FFS Reports

FINANCIAL ADMINISTRATION TRANSFERRED TO OSG Financial Responsibilities Transferred from 10 BIA Regions and 35 BIA Field Offices OSG Delivers Public Funds to 40% of All Tribal Governments OSG Delivers 1/3 of est. $1 Billion Appropriated for Both Title I (Self- Determination) and Title IV (Self- Governance) of the Indian Self- Determination and Education Assistance Act OSG Financial Staff 1991: 0 FTE : 1 FTE : 2 FTE 1997-Present: 3 FTE (1 vacant) BIA Region and Field Offices performed Budget, Accounting and Compact Functions for SG Tribes 1994-Present OSG assumed same BIA Budget, Accounting and Compact Functions for SG Tribes SG Compacts 7 Tribes $27 Million SG Compacts 234 Tribes/Alaskan Villages $350 Million

SGDB AND FFS SUPPORT BUDGET MANAGEMENT Budget Execution ►Manage Fund Transfers: Suballotments & Reprogrammings ►Allocate Transferred Funds to Tribal Accounts ►Conduct Cash Management for SG Allotted Aggregate Accounts and Each Tribal Account ►Prepare Fund Distribution Requests by Program (based on signed funding agreements) ►Monitor Funds for Compliance with Tribal Funding Agreements Budget Formulation ►Prepare SG Internal Transfers for the President’s BIA Budget Comprehensive Table aka “OSG White Book” ►Update SGDB Tribal Base Tables based on BIA Approved Internal Transfers ►Pre-populate Approved Base Amounts Electronically to Tribal Funding Agreements to Launch Annual Negotiations ►Prepare Budget Formulation Submissions, Justifications & Tables for BIA Greenbook FFS SGDB Manual

SGDB AND FFS SUPPORT (Cont’d) ACCOUNTING MANAGEMENT ► Perform Daily OSG Aggregate & Tribal Account Reconciliation ►Generate Tribal Account Obligations for FFS Input ►Process Tribal Obligation Awards ►Process Tribal Payments ►Prepare Federal Reports, i.e. annual DOI Congressional District Report ►Provide Tribal Funding Reports Online, Real Time ►Prepare Reports for Internal and External Data Calls, i.e. Congressional, GAO, A-123 Reviews, etc. ►Process Annual Independent Tribal Audit Certifications ►Process Billings & Collections (Interagency and Tribal) ►Track and Resolve Undelivered Orders ►Provide BIA Annual Audit Information per Auditor Data Calls ►Manage Transportation Project Cost Accounting for Federal Highway Funds ►Review and Process Post-Payment Transportation Expenditures SGDBFFS SGDB FFS SGDB FFS SGDBFFS SGDBFFS SGDB

SGDB AND FFS SUPPORT (Cont’d) COMPACT MANAGEMENT ►Record Final Negotiated Amounts by Program for Each Tribal Funding Agreement ►Import Each Tribal Funding Agreement Vs. Manual Reconciliation and Record Input of Agreements (less than 15 seconds after verification with each signed electronic funding agreement Vs. over thousand hours for 95 compacts) ►Review, Track and Coordinate Funding Agreements Electronically with Compact Negotiator Teams ►Calculate and Determine Contract Support Funds Consistent with Indirect Cost Agreements, Policy and Congressional Appropriations ►Serve as Contracting Officer Representative (COR) for OSG IT Services Outsourced (create work orders, conduct contractor reviews and authorize contractor payments) SGDB Manual

IT MANAGEMENT IT Functions Managed by the OSG Financial Manager SGDB Security Administration  Certification and Accreditation - September 2004  Contingency Plan and Annual Contingency Test and 2005 SGDB System and Application Maintenance (Contracted) SGDB Network Communications (Contracted) SGDB Database Design and Upgrades (Contracted) SGDB Hardware and Software SGDB Website Administration SGDB Tribal User Training and Help Desk SGDB Federal Documentation as required by OMB Circular A-11 and other IT requirements i.e. architectural, business case, etc.

Why SGDB $100,000 One-Time Fund Request? April 2006 October 1, 2006 October 1, 2006 thru September 30, 2007 ► BIA notified OSG that FY 2007 FFS cost codes will be restructured to meet BIA’s new cost code requirements. FFS will launch new cost codes and new aggregate accounts for OSG to separate Unified Trust Budget (UTB) program line items. ► SGDB must be redeveloped to meet the new FFS budget restructure. SGDB is 14 years old and its platform and architecture will not accommodate new code structure and functionality. Funds are needed to redevelop SGDB. ► Existing FY 2006 FFS cost code structure will continue for 12 months until FY expires. Consequently, SGDB will need to run dual systems with different code structures and maintenance tables.

What Does SGDB Support? ♦ SGDB supports an efficient, transparent and accountable fund delivery system for SG public funds ♦ SGDB supports the SG public funds cycle to achieve financial integrity throughout all phases ♦ SGDB provides electronic financial tools which supplement (but do not duplicate) the FFS system support Negotiating SG Funding Agreements ♦ Provides online entry of BIA and Interagency funds negotiated in funding agreements thereby reducing exponential hours to manually input agreement records ♦ Supports 4 negotiators in reconciling detailed program data and conditions with tribal and BIA staff to maintain quality control ♦ Pre-populates tribal base program amounts in President’s Budget in online agreements thus eliminating many hours of base reconciliation Implementing SG Funding Agreements ♦ Supports 95% of financial workload of 3 financial staff in their delivery of funds approved under SG agreements ♦ Supports all financial administrative functions—budget execution, budget formulation, accounting and reporting (refer to core duties listed in “Budget Management and Accounting Management” slides) Processing Oversight Requests & Data Calls ♦ Maintains detailed fund information for all BIA & Interagency programs under SG Agreements for federal and tribal user speedy retrieval (FFS only provides SG aggregate account data) ♦ Provides valid current and historical data for federal annual audits, A-123 reviews, tribal independent audits and certifications, etc

What Is Included in SGDB $100,000 Redevelopment? $100,000 SGDB REDEVELOPMENT INCLUDES: ■$35,000 database design and structural changes ■$35,000 initial coding and system component changes ■ $15,000 database documentation and user manuals ■$15,000 testing

SGDB Alternatives and Requirements Preferred Alternative ▲Redevelop SGDB for FY 2007 Other Alternatives ▼OSG Perform Budget, Accounting and Compact Functions MANUALLY ▼Return OSG Financial Responsibilities to BIA ▼Modify FFS to Perform SGDB Systems Support Functions Requirements ▲Provide $100,000 to Redevelop SGDB by January 2007 with Temporary System Measure during 1 st Quarter of FY 2007 for SG Fiscal Year Tribes ▼Immediately Approve Additional Staff and Resources (at least 10 FTE) by October 2006—FY 2007 ▼Immediately Transition By October 2006—FY OSG financial staff would remain only to close the remaining 12 months of FY (24 month accounts) ▼Develop, Fund and Implement New FFS System Enhancements Comparable to SGDB by October FY 2007

APPENDIX – SGDB and FFS REPORTS Attached SGDB Reports Exhibit ASG Tribal Annual Funding Agreement Exhibit BSG Tribal Funding Status Report Exhibit CSG New Obligations Schedule Exhibit DSG Authority to Obligate Report (manual input to FFS) Attached FFS Reports Exhibit EFFS SG Tribal Aggregate Account (P638 Accounting) Exhibit FFFS SG Aggregate Account (ALCT Budget)