**DEPARTMENT OF THE INTERIOR**

**BIA CROSS-CUTTING SECTION**

**INTRODUCTION**

This section contains compliance requirements that apply to more than
one program of the Bureau of Indian Affairs (BIA) in the Department of
the Interior (DOI) because of requirements set forth in (1) the Indian
Self Determination and Education Assistance Act (ISDEAA), as amended,
and the Tribally Controlled Schools Act and (2) Section 111 of the
Department of the Interior and Related Agencies Appropriations Act,
1999, (Pub. L. No. 105-277) regarding the investment and deposit of BIA
funds advanced to tribal organizations pursuant to the provisions of the
ISDEAA and Tribally Controlled Schools Act of 1988. The compliance
requirements in this Cross-Cutting Section reference the applicable
programs in Part 4, Agency Compliance Requirements. Similarly, the
applicable programs in Part 4 reference this Cross-Cutting Section.

**CFDA \# Program Name**

**ISDEAA Programs**

15.021 Consolidated Tribal Government Program

15.022 Tribal Self-Governance

15.030 Indian Law Enforcement

**Tribally Controlled Schools Act**

15.042 Indian School Equalization Program

**I. PROGRAM OBJECTIVES**

The ISDEAA, of which the Tribal Self-Governance Act is part, was
implemented to establish meaningful Indian self-determination that will
permit an orderly transition from the Federal domination of programs
for, and services to, Indians to effective and meaningful participation
by the Indian people in the planning, conduct, and administration of
those programs and services. The Tribally Controlled Schools Act
provides a grant process for the operation of schools funded by the BIA.

**II. PROGRAM PROCEDURES**

The ISDEAA and the Tribally Controlled Schools Act allow tribal
organizations to draw down funds in advance of need. The frequency and
timing of the drawdowns are set forth in the statutes. The provision for
advancing funds is to ensure sufficient capital for the delivery of
program services.

The Tribal Self-Governance Act provides for advance payments to tribes
and tribal consortia in the form of annual or semiannual payments at the
discretion of the tribes (25 USC 458cc (g)(2)). The ISDEAA provides for
payments to Indian tribes and tribal organizations on a quarterly basis,
in a lump-sum payment, or as semiannual payments or any other payment
method authorized by law with such method as may be requested by the
tribe or tribal organization (25 USC 450*l*(c)(b)(6)(B)(i)). The
Tribally Controlled Schools Act provides for two payments per year: the
first payment to be made not later than July 15 and the second payment
not later than December 1 (25 USC 2507(a)(1)).

Regarding the use of these funds prior to their expenditure for the
purposes for which they were intended, the Congress provided specific
guidance in Section 111 of the Department of the Interior and Related
Agencies Appropriations Act, 1999, Pub. L. No. 105-277, that allows
these funds to be invested. Indian tribes and tribal organizations are
not accountable to the BIA for the income earned from these investments.

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look to
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

**B. Allowable Costs/Costs Principles**

> *BIA programs in this Supplement that this section applies to are:
> Consolidated Tribal Government Program (15.021); and Indian Law
> Enforcement (15.030).*
>
> Indian tribes and tribal organizations may without the approval of the
> BIA expend funds provided under a self-determination contract for
> purposes identified in 25 USC 450j-1(j), including the following, to
> the extent that the expenditure of the funds is supportive of a
> contracted program (25 USC 450j-1(j)).
>
> 1\. Building, realty, and facilities costs, including rental costs or
> mortgage expenses.
>
> 2\. Automated data processing and similar equipment or services.
>
> 3\. Costs for capital assets and repairs.
>
> 4\. Costs incurred to raise funds or contributions from non-Federal
> sources for the purpose of furthering the goals and objectives of the
> self-determination contract.
>
> 5\. Interest expenses paid on capital expenditures such as buildings,
> building renovation or acquisition or fabrication of capital
> equipment, and interest expenses on loans necessitated due to delays
> by the Secretary in providing funds under a contract.
>
> 6\. Expenses of a governing body of a tribal organization that are
> attributable to the management or operation of programs under ISDEAA.

**H. Period of Availability of Federal Funds**

> *BIA programs in this Supplement that this section applies to are:
> Consolidated Tribal Government Program (15.021); Tribal
> Self-Governance (15.022); Indian Law Enforcement (15.030); and Indian
> School Equalization Program (15.042).*
>
> Any funds appropriated under an ISDEAA contract or compact or a
> Tribally Controlled Schools Act grant are available until expended (25
> USC 450*l*(c)(b)(9) and 25 USC 2507(b)(1)).

**N. Special Tests and Provisions**

> **1. Investment and Deposit of Advance Funds**
>
> *BIA programs in this Supplement that this section applies to are:
> Consolidated Tribal Government Program (15.021); Tribal
> Self-Governance (15.022); Indian Law Enforcement (15.030); and Indian
> School Equalization Program (15.042).*
>
> **Compliance Requirement** - A tribe, tribal organization, or
> consortia receiving advance payments under the ISDEAA or the Tribally
> Controlled Schools Act may invest advance payments, before such funds
> are expended for the purposes of the grant, contract, or funding
> agreement, so long as such funds are (1) invested in obligations of
> the United States or in obligations or securities that are guaranteed
> or insured by the United States, or mutual (or other) funds registered
> with the Securities and Exchange Commission and which only invest in
> obligations of the United States or securities that are guaranteed or
> insured by the United States or (2) deposited in accounts that are
> insured by an agency or instrumentality of the United States, or are
> fully collateralized to ensure protection of the advance funds, even
> in the event of a bank failure (Section 111 of the Department of the
> Interior and Related Agencies Appropriations Act of 1999, Pub. L. No.
> 105-277).
>
> **Audit Objective** - Determine whether Indian tribes, tribal
> organizations, or consortia are properly investing or depositing
> advanced funds.

**Suggested Audit Procedures**

> a\. Obtain and review tribal policies and procedures for the
> investment and deposit of funds.
>
> b\. Review unused advances during the audit period and verify that
> unused funds were properly invested or deposited throughout the
> period.

**DEPARTMENT OF THE INTERIOR**

**CFDA 15.021 CONSOLIDATED TRIBAL GOVERNMENT PROGRAM**

**I. PROGRAM OBJECTIVES**

The objective of the Consolidated Tribal Government Program is to
provide funds for certain programs of an ongoing nature to Indian Tribal
Governments in a manner which minimizes program administrative
requirements and maximizes flexibility.

**II. PROGRAM PROCEDURES**

The Bureau of Indian Affairs (BIA) makes direct payments to Federally
Recognized Indian Tribal Governments to carry out a variety of
activities for which appropriations are made within the Tribal Priority
Allocations activity of the BIA budget. For example, Scholarships,
Johnson O=Malley, Job Placement and Training, and Agricultural Extension
could be combined under a single contract for education and training.
This allows tribal contractors greater flexibility in planning their
programs and meeting the needs of their people. The simplified
contracting procedures and reduction of tribal administrative costs
allow for increased services under these contracts.

**Source of Governing Requirements**

The program is authorized by the Indian Self-Determination and Education
Assistance Act (ISDEAA), Title I, Pub. L. No. 93-638, as amended (25 USC
450 *et seq*.).

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look at
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

Certain compliance requirements which apply to multiple BIA programs are
discussed once in the BIA Cross-Cutting Section of this Supplement (page
4-15.000-1) rather than repeating in each individual program.

A.  **Activities Allowed or Unallowed**

> The ISDEAA provides for the expenditure of funds by Indian tribes and
> tribal organizations under self-determination contracts for programs
> and activities previously provided by the BIA. Funds may be used for a
> variety of programs and services that the Federal government otherwise
> would have provided directly. The specific activities allowed will be
> indicated in the self-determination contract between the tribal
> organization and the Secretary of the Interior (25 USC 450f). While
> the tribe or tribal organization may propose to redesign the program
> or activity, such redesign must be approved by the BIA (25 USC
> 450j(j)).

B.  **Allowable Costs/Costs Principles**

See BIA Cross-Cutting Section.

**H. Period of Availability of Federal Funds**

See BIA Cross-Cutting Section.

**L. Reporting**

> **1. Financial Reporting**
>
> a\. SF-269, *Financial Status Report* - Applicable
>
> b\. SF-270, *Request for Advance or Reimbursement* - Not Applicable
>
> c\. SF-271, *Outlay Report and Request for Reimbursement for
> Construction Programs* - Not Applicable
>
> d\. SF-272, *Federal Cash Transactions Report* - Not Applicable

**2. Performance Reporting** - Not Applicable

**3. Special Reporting** - Not Applicable

**N. Special Tests and Provisions**

See BIA Cross-Cutting Section.

**DEPARTMENT OF THE INTERIOR**

**CFDA 15.022 TRIBAL SELF-GOVERNANCE**

**I. PROGRAM OBJECTIVES**

The objective of the Tribal Self-Governance program is to further the
goals of Indian Self-Determination by providing funds to Indian tribes
to administer a wide range of programs with maximum administrative and
programmatic flexibility.

**II. PROGRAM PROCEDURES**

The Tribal Self‑Governance Act of 1994 (25 USC 458aa *et seq*.)
established tribal self‑governance as a permanent option for tribal
governments. Under tribal self‑governance, Indian tribes have greater
control and flexibility in the use of funds, reduced reporting
requirements, and authority to redesign or consolidate programs,
services, functions, and activities. Tribes are selected from an
applicant pool upon meeting certain eligibility requirements.

The Office of Self-Governance makes direct payments to Federally
Recognized Indian Tribal Governments and tribal consortia authorized by
Federally Recognized Indian Tribal Governments. Funds may be used to
support tribal programs such as law enforcement, social services,
welfare payments, natural resource management and enhancement, housing
improvement, and road maintenance (25 USC 458cc(b)).

**Source of Governing Requirements**

The program is authorized by the Indian Self-Determination and Education
Assistance Act (ISDEAA), Title IV, Pub. L. No. 93-638, as amended (25
USC 458aa *et seq*.).

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look at
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

Certain compliance requirements which apply to multiple Bureau of Indian
Affairs (BIA) programs are discussed once in the BIA Cross-Cutting
Section of this Supplement (page 4-15.000-1) rather than repeating in
each individual program.

A.  **Activities Allowed or Unallowed**

> The ISDEAA provides for the expenditure of funds by Indian tribes and
> tribal organizations under self-determination contracts or annual
> funding agreements for programs and activities previously provided by
> the BIA. Funds may be used for a variety of programs and services that
> the Federal government otherwise would have provided directly. The
> specific activities allowed will be indicated in the funding agreement
> between the tribal organization and the Secretary of the Interior (25
> USC 458cc(b) and (c)). Indian tribes and tribal consortia are provided
> latitude in redesigning programs and activities. However, such
> redesign is limited to programs covered by the annual funding
> agreement (25 USC 458cc(b)(3)).

**H. Period of Availability of Federal Funds**

See BIA Cross-Cutting Section.

**N. Special Tests and Provisions**

See BIA Cross-Cutting Section.

**DEPARTMENT OF THE INTERIOR**

**CFDA 15.030 INDIAN LAW ENFORCEMENT**

**I. PROGRAM OBJECTIVES**

The objective of the Indian Law Enforcement program is to provide funds
to Indian Tribal Governments to operate police departments and detention
facilities.

**II. PROGRAM PROCEDURES**

The Bureau of Indian Affairs (BIA) makes direct payments to Federally
Recognized Indian Tribal Governments exercising Federal criminal law
enforcement authority over crime under the Major Crimes Act (18 USC
1153) on their reservations. Funds may be used for salaries and related
expenses of criminal investigators, uniformed officers, detention
officers, radio dispatchers, and administrative support.

**Source of Governing Requirements**

The program is authorized by the Indian Self-Determination and Education
Assistance Act (ISDEAA), Pub. L. No. 93-638, as amended (25 USC 450 *et
seq*.) and the Indian Law Enforcement Reform Act, Pub. L. No. 101-379
(25 USC 2801 *et seq.*).

**Availability of Other Program Information**

Part 40 of the Indian Affairs Manual provides information applicable to
all law enforcement programs operated by an Indian tribe or tribal
organization under a Self-Determination contract. Part 40 does not apply
to Indian tribes which have negotiated Self-Governance compacts. The
manual is available on the Internet
(http://www.doi.gov/bia/iams/iamtoc.htm).

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look at
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

Certain compliance requirements which apply to multiple BIA programs are
discussed once in the BIA Cross-Cutting Section of this Supplement (page
4-15.000-1) rather than repeating in each individual program.

**A. Activities Allowed or Unallowed**

> The ISDEAA provides for the expenditure of funds by Indian tribes and
> tribal organizations under self-determination contracts for programs
> and activities previously provided by the BIA. Funds may be used for a
> variety of programs and services that the Federal government otherwise
> would have provided directly. The specific activities allowed will be
> indicated in the self-determination contract between the tribal
> organization and the Secretary of the Interior (25 USC 450f). While
> the tribe or tribal organization may propose to redesign the program
> or activity, such redesign must be approved by the BIA (25 USC
> 450j(j)).

**B. Allowable Costs/Costs Principles**

See BIA Cross-Cutting Section.

**H. Period of Availability of Federal Funds**

See BIA Cross-Cutting Section.

**L. Reporting**

> **1. Financial Reporting**
>
> a\. SF-269, *Financial Status Report* - Applicable
>
> b\. SF-270, *Request for Advance or Reimbursement* - Not Applicable
>
> c\. SF-271, *Outlay Report and Request for Reimbursement for
> Construction Programs* - Not Applicable
>
> d\. SF-272, *Federal Cash Transactions Report* - Not Applicable

**2. Performance Reporting** - Not Applicable

**3. Special Reporting** - Not Applicable

**N. Special Tests and Provisions**

See BIA Cross-Cutting Section.

**DEPARTMENT OF THE INTERIOR**

**CFDA 15.042 INDIAN SCHOOL EQUALIZATION PROGRAM**

**I. PROGRAM OBJECTIVES**

The objective of the Indian School Equalization Program is to provide
funding for elementary and secondary education.

**II. PROGRAM PROCEDURES**

The Office of Indian Education Programs makes direct payments to
Federally Recognized Indian Tribal Governments or tribal organizations
currently served by a Bureau of Indian Affairs (BIA) funded school.
Funds may be used for the education of Indian children in BIA funded
schools. Funds may not be used for construction.

**Source of Governing Requirements**

The program is authorized by the Indian Self-Determination and Education
Assistance Act (ISDEAA), Pub. L. No. 93-638, as amended (25 USC 450 *et
seq*.), Indian Education Amendments of 1978, Pub. L. No. 95-561 (25 USC
2001 *et seq*.), and Tribally Controlled Schools Act (25 USC 2501 *et
seq*.).

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look at
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

Certain compliance requirements which apply to multiple BIA programs are
discussed once in the BIA Cross-Cutting Section of this Supplement (page
4-15.000-1) rather than repeating in each individual program.

**A. Activities Allowed or Unallowed**

> The expenditure of funds are restricted to those Federal programs
> covered by the grant. The Tribally Controlled Schools Act provides for
> the expenditure of funds by Indian tribes and tribal organizations
> under grants for education related programs and activities including
> school operations, academic, educational, residential, guidance and
> counseling, and administrative purposes, and support services for the
> school, including transportation (25 USC 2503).

**H. Period of Availability of Federal Funds**

See BIA Cross-Cutting Section.

**L. Reporting**

> **1. Financial Reporting**
>
> a\. SF-269, *Financial Status Report* - Applicable
>
> b\. SF-270, *Request for Advance or Reimbursement* - Not Applicable
>
> c\. SF-271, *Outlay Report and Request for Reimbursement for
> Construction Programs* - Not Applicable
>
> d\. SF-272, *Federal Cash Transactions Report* - Not Applicable

**2. Performance Reporting** - Not Applicable

**3. Special Reporting** - Not Applicable

**N. Special Tests and Provisions**

Also, see BIA Cross-Cutting Section.

> **1. Character Investigations by Indian Tribes and Tribal
> Organizations**
>
> **Compliance Requirement** - The Indian Child Protection and Family
> Violence Prevention Act (25 USC section 3201 *et seq*.) requires
> Indian tribes and tribal organizations that receive funds under the
> ISDEAA or the Tribally Controlled Schools Act to conduct an
> investigation of the character of each individual who is employed or
> is being considered for employment by such Indian tribe or tribal
> organization in a position that involves regular contact with, or
> control over, Indian children. The Act further states that the Indian
> tribe or tribal organization may employ individuals in those positions
> only if the individuals meet standards of character, no less stringent
> than those prescribed under subpart B - Minimum Standards of Character
> and Suitability for Employment (25 CFR part 63), as the Indian tribe
> or tribal organization establishes.
>
> **Audit Objective** - Determine whether Indian tribes and tribal
> organizations are performing the required background character
> investigations of school employees.

**Suggested Audit Procedures**

> a\. Obtain and review policies and procedures for the performance of
> background investigations.
>
> b\. Perform tests of selected security and personnel files of
> employees occupying positions that have regular contact with or
> control over Indian children to verify:
>
> \(1\) A suitability determination was conducted by an appropriate
> adjudicating official who themselves were the subject of a favorable
> background investigation (25 CFR section 63.17(c)).
>
> \(2\) The background investigation covered the past five years of the
> individual\'s employment, education, etc. (25 CFR section 63.16(b)).
>
> \(3\) A security investigation was obtained and compared to the
> employment application (25 CFR section 63.17(e)(1)).
>
> \(4\) Written record searches were obtained from local law enforcement
> agencies, former employers, former supervisors, employment references,
> and schools (25 CFR section 63.17(e)(2)).
>
> \(5\) Fingerprint charts were compared to information maintained by
> the Federal Bureau of Investigation or other law enforcement
> information maintained by other agencies (25 CFR section 63.17(e)(3)).

**DEPARTMENT OF THE INTERIOR**

**CFDA 15.605 SPORT FISH RESTORATION**

**CFDA 15.611 WILDLIFE RESTORATION**

**I. PROGRAM OBJECTIVES**

The objective of the Federal Aid in Sport Fish Restoration program is to
restore, conserve, and enhance sport fish populations and to provide for
public use and enjoyment of these fishery resources.

The objective of the Federal Aid in Wildlife Restoration program is to
restore, conserve, and enhance wildlife populations, provide for public
use and enjoyment of these resources, and to provide training to hunters
and archers in skills, knowledge, and attitudes necessary to be
responsible hunters.

**II. PROGRAM PROCEDURES**

The U.S. Fish and Wildlife Service makes program and project grants to
State fish and game agencies with funds apportioned to each State
through a statutory formula. States may submit either a comprehensive
plan or project proposal to the Service. When either is approved, the
State is generally reimbursed for up to 75 percent of the cost of the
work performed.

**Source of Governing Requirements**

The Sport Fish Restoration Program is authorized by the Federal Aid in
Sport Fish Restoration (Dingell-Johnson) Act (16 USC 777 through
777*l*). The Wildlife Restoration Program is authorized by the Federal
Aid in Wildlife Restoration (Pittman-Robertson) Act (16 USC 669 through
669*i*). Program regulations are at 50 CFR part 80.

**Availability of Other Program Information**

Other program information is available on the U.S. Fish and Wildlife
Service Grant Information site on the Internet at
http://fa.r9.fws.gov/grants/grantinf.html.

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look at
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

**A. Activities Allowed or Unallowed**

> 1\. *Wildlife Restoration Allowable Activities*
>
> Specific allowable projects are specified in the grant agreements.
> Allowable projects shall have as their purpose:
>
> a\. The restoration, conservation, management, and enhancement of wild
> birds and wild mammals, and the provision of public use of and
> benefits from these resources (50 CFR section 80.5(a)).
>
> b\. Projects having as their purpose the education of hunters and
> archers in the skills, knowledges, and attitudes necessary to be a
> responsible hunter or archer (50 CFR section 80.5(a)).
>
> 2\. *Sport Fish Restoration Allowable Activities*
>
> Specific allowable projects are specified in the grant agreements.
> Allowable projects shall have as their purpose the restoration,
> conservation, management, and enhancement of sport fish, and the
> provision for public use and benefits from these resources (50 CFR
> section 80.5(b)(1)).
>
> 3\. *Unallowable Activities*
>
> The following activities are unallowable:
>
> a\. With the exception of law enforcement activities to accomplish
> Federal project purposes as approved by the Regional Director of the
> U.S. Fish and Wildlife Service or to protect Federal aid assets, use
> of grant funds for enforcement of game and fish laws and regulations
> is prohibited (50 CFR section 80.6(a)).
>
> b\. Public relations activities for the purpose of promoting
> organizations or agencies, including publication of agency magazines,
> displays, and exhibits, are ineligible except as they apply to
> educational or technical guidance activities specifically related to
> the accomplishment of Federal aid projects (50 CFR section 80.6(b)).
>
> c\. Activities for the purpose of providing revenues are ineligible.
> These activities include the process and sale of licenses and permits
> and the acquisition of real or personal property for the purpose of
> using that property for rental, leases, sales or other commercial
> purposes. However, the production of incidental income, which results
> from otherwise eligible activities, is not prohibited (50 CFR section
> 80.14(c)).

**F. Equipment and Real Property Management**

> Real property acquired or constructed with Federal funds shall
> continue to serve the propose for which acquired or constructed. When
> property passes from management control of the State fish and wildlife
> agency, the control shall be fully restored to the State fish and
> wildlife agency or the real property shall be replaced using
> non-Federal funds. When property is used for purposes which interfere
> with the accomplishment of approved purposes, the violating activities
> shall cease and adverse effects be remedied (50 CFR section 80.14).

**G. Matching, Level of Effort, Earmarking**

> **1. Matching**
>
> Federal participation is limited to 75 percent of eligible costs
> incurred in the completion of approved work or the Federal share
> specified in the grant agreement, whichever is less (50 CFR section
> 80.12).
>
> **2 Level of Effort** - Not Applicable
>
> **3. Earmarking**
>
> a\. *Indirect Costs Limitation* - The amount of overhead or indirect
> costs charged to the projects under these programs for central
> services provided from outside the fish and game agency may not exceed
> three percent of the annual apportionment to the State (50 CFR section
> 80.15(d)).
>
> b\. *Aquatic Education* - Not more than 15 percent of the annual
> apportionment to each State under the provisions of the Federal Aid in
> Sport Fish Restoration Act may be used for aquatic education projects
> (16 USC 777g(c)).
>
> c\. *Recreational Boating Access Facilities* - The State shall
> allocate at least 15 percent of each annual apportionment under the
> Federal Aid in Sport Fish Restoration Act for recreational boating
> access facilities (16 USC 777g(b)(1)).

**H. Period of Availability of Federal Funds**

> *Multi-year Financing Exception* - States may finance the acquisition
> of lands and the construction of facilities using multi-year funding
> as authorized by the Federal Aid in Sport Fish Restoration Act (50 CFR
> section 80.25).

**J. Program Income**

> Program income (e.g., timber sales, leases, fees) is often generated
> on land purchased, improved, or maintained with Federal funds. This
> program income may be generated years after the expenditure of Federal
> funds to purchase or improve the land (50 CFR section 80.4).

**L. Reporting**

> **1. Financial Reporting**
>
> a\. SF-269, *Financial Status Report* - Applicable
>
> b\. SF-270, *Request for Advance or Reimbursement* - Not Applicable
>
> c\. SF-271, *Outlay Report and Request for Reimbursement for
> Construction Programs* - Not Applicable
>
> d\. SF-272, *Federal Cash Transactions Report* - Not Applicable
>
> **2. Performance Reporting** - Not Applicable
>
> **3. Special Reporting**
>
> a\. *Paid Hunting and Fishing License Certification (OMB Approval
> No.1018-0007)* - The State fish and wildlife agency shall certify
> annually the number of paid hunting and fishing license holders in the
> State. A paid license holder is one person, regardless of the number
> of licenses, tags, permits, or stamps held. Only licenses sold by the
> State or its designee in which revenues from the sale of the licenses
> are returned to the State fish and wildlife agency are to be included
> in the annual certificates. Free licenses or licenses issued for a
> token fee shall not be counted (50 CFR section 80.10).

**N. Special Tests and Provisions**

**1. Assent Legislation and Diversion of License Fees**

> **Compliance Requirement** - A State may participate in the benefits
> of the Sport Fish and Wildlife program and the Wildlife Restoration
> program only after it has passed legislation for the conservation of
> fish and wildlife, including a prohibition against the diversion of
> license fees paid by hunters and sport fishermen to purposes other
> than for the administration of the fish and wildlife agency (50 CFR
> section 80.3).
>
> License fees paid by hunters and fishermen, include any special
> license, permits, stamps, tags, or access fees. Also included are
> revenues for the sale, lease, or rental of items on property purchased
> with Federal funds, as well as the interest or dividends earned on the
> license revenues (50 CFR section 80.4).
>
> Administration of the State fish and wildlife agency includes only
> those functions required to manage the fish and wildlife-oriented
> resources of the State. Law enforcement activities for predator,
> animal, and rodent control are not administration of the State fish
> and wildlife agency (50 CFR section 80.4(b)).
>
> **Audit Objective** - Determine whether revenues from license fees
> paid by hunters and sport fishermen are used only for the
> administration of the State fish and wildlife agency.

**Suggested Audit Procedures**

> a\. Ascertain if there are legislative prohibitions in place to
> prevent diversion of license revenues.
>
> b\. Perform tests to ascertain if hunting and sport fishing license
> revenue was properly accounted for and restricted for use for the
> administration of the State fish and wildlife agency.
>
> c\. Test expenditures from the license fees paid by hunters and sport
> fisherman to ascertain if they were used for the administration of the
> State fish and wildlife agency.
>
> d\. Perform procedures to ascertain if there were any transfers from
> the State fish and wildlife agency which divert license fees paid by
> hunters and sport fisherman from the administration of the State fish
> and wildlife agency.