Resolution No. 059-93

WHEREAS, the Grand Ronde Tribal Council, pursuant to Article III, Section I of the Tribal Constitution approved November 30, 1984 by the Acting Deputy Assistant Secretary of the Interior, Indian Affairs, is empowered to exercise all legislative and executive authority not specifically vested in the General Council of the Confederated Tribes of the Grand Ronde Community of Oregon; and,

WHEREAS, the Council has fiduciary responsibility which includes the management and protection of all Tribal assets and obtaining the highest and best benefit from Tribal assets; and

WHEREAS, the Council has determined uniform policies and standards are required to ensure all work units exercise proper care in the use and management of assets; and

WHEREAS, the Council intends that all work units take responsibility for exercising fiduciary care in the use and management of all Tribal resources; and

WHEREAS, the Council has knowledge of procurement contracts being entered into without review by the Tribal Attorney and wishes to ensure this review of such contracts.

NOW THEREFORE BE IT RESOLVED, that the Tribal Council hereby adopts the Fiscal Management Ordinance, declares an emergency and directs that this Ordinance will become effective immediately.

CERTIFICATION: The Tribal Council for the Confederated Tribes of the Grand Ronde Community of Oregon adopted this resolution at a regularly scheduled meeting, with a quorum present as required by the Grand Ronde Constitution held on September 1, 1993, by a vote of 6 yes, 0 no, and 0 abstentions.

_________________________________

Mark Mercier, Tribal Chairman

_________________________________

Candy Robertson, Secretary

(a) PURPOSE: To set forth uniform policies and standards to ensure the organization maintains the highest standard of fiduciary care in utilizing, managing and protecting the assets of the Grand Ronde Tribe.

(b) BACKGROUND: The Tribal Council, as the governing body, has fidciary responsibility for all assets of the Tribe. This responsibility includes management and protection of all assets to obtain for the Tribe the highest and best benefit from all Tribal assets.

The Council has determined uniform policies and standards are required to ensure all work units of Tribal government exercise pro per care in the use and management of assets of the Tribe.

It is the intent of the Council that all work units of Tribal governent take responsibility to exercise fiduciary care in the use and management of all resources of the Tribe.

(c) GENERAL POLICY: Every Tribal Council Member, committee member, employee and individual who serves the Tribe in any capacity shall be expected to ensure protection and management of all Tribal re sources in accordance with generally accepted standards and in keeping with most appropriate available technology.

(d) FINANCIAL STANDARDS

(1) Revenue and Depositories

(A) All revenues shall be receipted by official receipt and shall be deposited, intact in such depository as shall be selected by the Council.

(B) Unless otherwise directed, or as needed to maximize tribal assets, all monies of the Tribe shall be deposited in accounts insured by the Federal Government as to both principal and interest.

(C) All revenues shall be credited to the fund established for them, provided any revenues not designated to be credited to any other fund shall be credited to the General Fund of the Tribe, except as provided in section (2) (C)

(2) Accounting

(A) All financial resources and other assets of the Tribe shall be accounted for by generally accepted accounting principles applicable to Indian Tribal governments, and in accordance with the following:

1. The accounting records of the Tribe shall be maintained at Tribal Headquarters offices, pro vided, however, that records of corporate entities may be maintained consistent with the corporate charter.

2. The accounting year for the Tribe shall be the calendar year.

3. All resources over which the Council exercises any form of governmental, fiduciary or agency responsibility shall be accounted for in Tribal accounting records.

(B) The Council shall establish funds and accounts by ordinance, to account for financial and other resources made available, or to be made available to the Tribe for pre-designated separate purposes. Whenever the Council establishes a separate fund, the Council shall set forth the following provisions;

1. The name of the fund,

2. The purpose of the fund,

3. The type of fund,

4. The source of revenues to the fund,

5. The permitted uses of the fund,

6. The duration of such fund,

7. The method by which authorization shall be made for use of the fund, and

8. The types of investments authorized for financial resources of the fund.

(C) When resources are received by the Tribe for a special purpose for which the Tribe has not previously authorized a separate fund, the EO shall establish a "Special Revenue Fund" to account for such resources until the Council enacts an ordinance establishing a new fund to account for such resources. The EO shall provide temporary direction for the fund by setting forth the provisions under (B) above.

(D) The EO shall ensure that Expenditure Statements are prepared and submitted to the Council semi-annually for each fund within 45 days after the end of each half year.

(E) Audited financial statements, including all informational notes and disclosures shall be published by the Tribe for each year for all financial activities, within seven months after the end of each calendar year. Such statements shall be provided to all members of the Council and made available, upon request, to any adult member of the Tribe.

(3) Cost Allocation

(A) All revenues and expenditures shall be allocated according to the purpose for which they are received and expended. All programs, separate portions thereof or separate cost objectives, shall be accounted for within a separate cost center to allow for an accounting of all revenues and expenditures associated with that program or cost objective.

(B) All expenditures made on behalf of a given cost center shall be allocated to that cost center, provided that costs defined by the Tribe as "indirect" shall be accounted for within cost centers established to account for indirect cost functions.

(C) Indirect cost functions shall be defined as those management, administrative, facilities and other support costs shared by other cost centers and that can not be allocated to other cost centers without efforts disproportionate to the results achieved. Indirect costs shall include the following as defined and negotiated in the indirect cost proposal:

1. Governing Body

2. Executive Direction and Management

3. Planning, policy and evaluation

4. Financial Management

5. Personnel Management

6. Human Resource Development

7. Procurement/Materials Management

8. Records Management

9. Information Management Services

10. General Offices Services

11. General Insurance

12. Legal Services

13. Professional Services

14. General Support Services

15. Facilities

16. Equipment

(D) Costs shall be accounted for according to such classifications as determined appropriate to provide for informative analysis and assist in their management.

(E) Assets having an acquisition cost or value in excess of $1,000 and useful life in excess of one year shall be capitalized within the accounting records of the Tribe.

(4) Budgets: All revenues and expenditures of the Tribe shall be authorized pursuant to budgets approved by the Council. Such budgets are to be developed, recommended and managed by the EO as follows:

(A) The EO shall submit a proposed budget to the Council for approval on or before September 1 of each year for the succeeding calendar year. The budget shall include all anticipated revenues and expenditures for the year. The budget shall provide enough detail to clearly identify resources available for all programs and purposes, including the following:

1. A narrative for each function or program that states the goals and objectives for the coming year and the authorizing Tribal law for each program.

2. A breakdown of the sources of revenue for each program or purpose.

3. A summary of the anticipated expenditures for each program or purpose.

(B) The EO shall assist the Council in the development and authorization of the budget in accordance with the Tribal appropriations ordinance.

(C) The EO shall be authorized to approve the expenditure of funds pursuant to the approved budget.

(D) The EO shall amend the budget to include any new program or cost objective authorized by the Council after the budget is approved.

(E) The EO may amend the budget at any time to transfer budget authority from one program or cost objective to another, as permitted according to Federal or other funding source and the Tribal budget ordinance.

(F) The EO may alter the amount of line item budgets within any cost center or program as necessary to carry out the intent of the program or function.

(G) The EO shall update the Tribal Budget and provide a revised budget to the Council within 30 days after the end of the first three calendar quarters in conjunction with financial statements and reports.

(5) Procurement: Any goods or services acquired by the Tribe at a cost in excess of $5,000 shall be subject to competition to ensure that the Tribe shall have the best possible value for funds expended. Such procurement shall be managed as follows:

(A) Procurement, the anticipated cost of which is between $5,000 and $25,000 shall require at least three oral quotations.

(B) Procurement, the anticipated cost of which shall be greater than $25,000 shall require no less than three written bids or proposals.

(C) The EO will ensure that contracts for the same project are not segmented so as to avoid dollar limits in this section.

(D) Records shall be maintained of all procurement in sufficient detail as to reflect the name of potential vendors, date of the quotation or bid, and the amount of the quotation. The Official selecting the successful bidder shall provide a written record indicating the consideration of the offers and the decision made.

(E) Competitive requirements:

1. A competitive process may be required for legal counsel, auditors or other professionals selected by the Council for which an ongoing relationship with the Tribe is desired.

2. There is no competitive requirement for food purchase, medical care for tribal members and other goods or services normally procured without competition.

(F) Competitive bids are not required when the provider of service is an educational institution or another government.

(G) Competitive bids may be waived by the EO, in writing, for any procurement less than $25,000 under the following circumstances: time required to obtain offers, a change in supplier, or other important circumstance that would cause hardship, substantially increase costs, or otherwise hinder the timely completion of any objective for which the procurement is to be made.

(H) The Tribal Council may waive competitive bidding in writing for any procurement, the anticipated costs of which is greater than $25,000, under the circumstances stated in (F).

(I) To the extent that any relevant federal procurement requirements are more stringent than requirements pro vided herein, the terms of such federal requirements shall be binding.

(J) Preference in procurement shall be afforded to Indians, then to other minority firms.

(K) Procurement from an employee or any member of the Tribal Council, shall be made in accordance with the Tribal Ethics Ordinance.

(L) No individual shall take part in selecting a successful vendor in any competitive or non-competitive procurement when such vendor is a member of the individual's immediate family.

(M) Upon award of a contract, the designated Tribal official will execute a written contract for any amount higher than $1,000, unless the goods or services are normally procured without a written contract.

(N) No procurement contract for an amount higher than $5,000 shall be valid unless approved by the Tribal Attorney. Failure to obtain this approval will result in personal liability for the contract by the signer.

(6) Borrowing

(A) No borrowing or other financing arrangement shall be made or entered into on behalf of the Tribe unless authorized by the Council by resolution.

(B) For the purposes of (A) above, leases or rental agreements, the term of which exceeds three years and/or $25,000, shall be considered financing arrangements.

(7) Audits

(A) The EO shall conduct such audits and examinations of financial and program records as are considered necessary to ensure the financial and programmatic integrity of Tribal operations and records.

(B) The EO shall recommend and the Council shall select a firm of independent Certified Public Accountants who shall conduct an annual audit of all of the financial operations and records for each calendar year.

Such audit shall be conducted in accordance with General ly Accepted Auditing Standards and shall provide for all financial statements and other reports required by the Tribe, the Federal Government and any other funding source. The report of such auditors shall be addressed and directed to the Council. The BO shall schedule and coordinate such audit in such a manner as to facilitate delivery of completed audit reports not later than July 31st of each year.

(8) Internal Control: The EO shall establish procedures to safeguard all Tribal assets and provide for an accurate and consistent accounting of all financial transactions of the Tribe.

(e) PROPERTY MANAGEMENT

(1) The EO shall establish procedures to provide for safe guarding and maintenance of all real and personal property owned by, or in the possession and care of, the Tribe.

(2) Records shall be maintained on all property in excess of $1,000 including: source, acquisition date, cost, with value of the property, and other information to provide for effect ive management.

(3) No Tribal real property shall be transferred to anyone except by Tribal Council Resolution.

(4) No Tribal property shall be put to personal use. This does not limit use of facilities and grounds for family and community activities.

(5) Equipment: Tribal officials and personnel shall be held personally accountable and liable for all equipment entrusted to their care while conducting Tribal business.

(f) RECORDS MANAGEMENT

(1) The BO shall establish policies and procedures for the effective organization, maintenance, storage, retrieval and safeguarding of Tribal records. Special care shall be given to any record determined to have present or future cultural or historical significance to the Tribe.

(g) INSURANCE AND BONDING

(1) The EO shall provide for such insurance policies as considered necessary to protect the interests of the Tribe. The policies shall include the following:

(A) Liability insurance that covers the Council, Officers, Division Managers and other appropriate employees of the Tribe.

(B) Employee fidelity bond covering all employees having access to monies and other assets of the Tribe.

(C) Property and casualty policies providing for the replacement of assets lost due to fire, theft or other casualty.

(D) Such liability policies as considered appropriate to Tribal business.

(2) The EO may establish self-insurance programs for low-cost losses, where a program will reduce the overall cost of insuring against loss, without significantly increasing risks.

(h) APPLICABILITY OF FEDERAL AND OTHER LAWS

(1) The EO shall establish such policies and procedures as considered necessary to carry out the provisions of this ordinance, any applicable Federal laws and regulations, and any other legal requirements of funding sources other than the Federal government.