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Series: Audits of Tribal Controls Over Indian Health Service Sanitation Facilities Construction Program Costs

Announced on  | Last Modified on  | Series Number: SRS-A-25-011
Status
Active
Agency
Indian Health Service

OBJECTIVE

Under the Infrastructure Investment and Jobs Act, Congress allocated $3.5 billion to the Indian Health Service (IHS) Sanitation Facilities Construction (SFC) Program to provide American Indian and Alaska Native homes and communities with essential water supply, sewage disposal, and solid waste disposal facilities. We plan to perform a series of audits that will examine internal controls in place over SFC program construction projects that are managed by an agreement between IHS and a Tribe, or managed by a Tribe that has assumed sole responsibility for a project. For each audit, our objective will be to determine whether IHS Area Offices or Tribes implemented internal controls for awarding, monitoring, and reporting SFC program projects according to applicable Federal and Tribal requirements.

There are 3 projects in this series.

Project titles will remain unpublished until projects are complete and reports are posted.

ACTIVE PROJECTS IN THIS SERIES (2)

Project OAS-25-07-073 • Announced on Nov 30, 2023

Project OAS-25-07-075 • Announced on Nov 30, 2023

COMPLETED PROJECTS IN THIS SERIES (1)

Audit of IHS Navajo Area Office and Navajo Nation Controls Over Indian Health Service Sanitation Facilities Construction Program Costs

Project A-07-24-07015 • Completed on September 10, 2026

TIMELINE

  • November 30, 2023
    Series Number SRS-A-25-011 Assigned
  • November 30, 2023
    Projects Announced

    Audit of IHS Navajo Area Office and Navajo Nation Controls Over Indian Health Service Sanitation Facilities Construction Program Costs - A-07-24-07015

  • Project OAS-25-07-073

  • Project OAS-25-07-075

  • September 10, 2026
    Project Complete - A-07-24-07015

    Audit of IHS Navajo Area Office and Navajo Nation Controls Over Indian Health Service Sanitation Facilities Construction Program Costs complete. This audit resulted in 4 recommendations.

  • Today
    2 Audits In-Progress
  • Est FY2027
    Estimated Fiscal Year for Series Completion

1 REPORT PUBLISHED

The IHS Navajo Area Office’s Internal Controls for Awarding, Monitoring, and Reporting Sanitation Facilities Construction Projects Could Be Improved (A-07-24-07015)

Although the NAIHS had internal controls in place for awarding, monitoring, and reporting SFC Program projects funded under the IIJA, it did not consistently follow those controls or its established procedures.

  • For some projects the NAIHS did not follow required award controls because it did not update project cost estimates or prepare and review project summaries as required.
  • The NAIHS did not follow its monitoring controls in several areas, including reviewing invoices before payment, reviewing and approving right-of-way easements, and amending Memorandums of Agreement when project scope changes occurred.
  • Some of the reports prepared by the NAIHS did not accurately identify funding sources, did not track construction and design costs separately as required, and did not report updated milestones.

26-A-07-105.01 to IHS - Open Unimplemented
Update expected on 03/09/2027
We recommend that the NAIHS follow its internal controls and its established procedures for awards of IIJA funds for SFC Program projects, to include controls regarding the proper review and updates of project cost estimates and the proper review and approval of project summaries.

26-A-07-105.02 to IHS - Open Unimplemented
Update expected on 03/09/2027
We recommend that the NAIHS revise local guidance in the NAIHS SDS Guideline so that it aligns with national guidance in the SFC Criteria to specify that project cost estimates include allowances for inflation.

26-A-07-105.03 to IHS - Open Unimplemented
Update expected on 03/09/2027
We recommend that the NAIHS follow its internal controls and its established procedures for the monitoring of SFC Program projects, to include: (1) strengthening project oversight activities, including of review and monitoring of invoices and documentation of construction cost controls; (2) following controls designed to ensure that MOAs are amended for project scope changes; and (3) following controls designed to ensure that construction costs do not exceed limits established in the MOAs.

26-A-07-105.04 to IHS - Open Unimplemented
Update expected on 03/09/2027
We recommend that the NAIHS follow its internal controls and its established procedures for the reporting of SFC Program projects, to include: (1) following controls regarding the identification and reporting of correct funding sources before payments are made, (2) following controls for tracking and reporting construction costs separately from A&E costs, and (3) following controls for timely updating and reporting of project milestones in the PDS.

View in Recommendation Tracker
Work Plan Type
Office of Audit Services
HHS Agencies
Indian Health Service
Issue Areas
Contracts Departmental Operational Issues Financial Stewardship Public Health Issues
Target Groups
Native American
Financial Groups
Grants