OMB Tribal Financial Disclosures and Financial Management Changes Notice

NAFOA will host a webinar reviewing broad revisions proposed by the Office of Management and Budget (OMB) in an attempt to develop tribal and joint comments. Revisions include: OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations; several cost circulars; and other federal grant administrative requirements.

OMB Proposed Tribal Financial Disclosures & Revisions to Circular A-133
• Wednesday, May 15 - 4:00 p.m. EST
• Click here to register

The webinar will cover key areas in the provision, including Section 712 of the proposed rule which may cause significant concern among tribal governments. The provision states that "unless restricted by law or regulation, the auditee shall make copies [of its reporting package] available for public inspection." This would allow the Federal Audit Clearinghouse to make a tribe's entire Single Audit reporting package, including audited financial statements, publicly available as is now done with data collection forms.

In addition to making reports publicly available, the OMB has proposed a number of other key reforms to its regulations on uniform grant administrative requirements, cost principles, and the Single Audit rules.

Please email any questions or comments to Jennifer Costello at Jennifer@nafoa.org.

IRS General Welfare Exclusion Guidance for Tribal Governments

NAFOA, along with its organization partners, presented a webinar on Thursday, May 9th. The purpose of the webinar was to:

1. Review the General Welfare Doctrine background.
2. Review the proposed safe harbors for tribal governments.
3. Facilitate a discussion to gauge tribal concerns for the development of tribal and joint comments.

In December of 2012, the Internal Revenue Service released Notice 2012-75 entitled "Application of the General Welfare Exclusion to Indian Tribal Government Programs That Provide Benefits to Tribal Members." The notice proposes a revenue procedure that would describe principles for the general welfare exclusion and provide safe harbors under which the IRS would presume that the individual need requirement of the general welfare exclusion has been met for benefits provided under Indian tribal governmental programs (sections 5.02 and 5.03).

The guidance includes tribal government programs and services where need is conclusively presumed for each tribal member, spouse, or dependent receiving the benefit. Some of the benefits include: housing programs, education expenses, elder programs, emergency assistance, and expense reimbursement for cultural and ceremonial program support. Although the general welfare notice prohibits compensation for services, exclusions are made for providing nominal honoraria paid to ceremonial and cultural leaders.

Documents Available:
• Protecting Tribal Social Programs PowerPoint
• Draft Joint Comments on IRS Proposed GWE Guidelines
• Guidance Notice 2012-75

Please email Dante Desiderio at Dante@nafoa.org with any questions.

You may also contact any of the IOTI organizations with further information, including USET, ATNI, CATG, MAST, UINOKT, and NCAI, which will be facilitating the webinar.

Policy Updates

JOINT COMMENTS OF National Congress of American Indians Native American Finance Officers Association United South and Eastern Tribes, Inc. The Affiliated Tribes of Northwest Indians California Association of Tribal Governments (PDF)

Comments on IRS Announcement 2011-71 (PDF)

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