As Treasurer, I am committed to a service of transparency, and the engagement of tribal citizens in meaningful consultations and decision making, that most affect their lives.
Our mission is to deliver consecutive years of clean audits while building, maintaining, and administering financial accounting and management information systems that provide complete, accurate, and timely information about all economic activities of the tribe. This very mission requires a closer profile, and assessing the organization as a whole requires deciding what type of organization we're striving to be and requires a vision of how we get there. A broader approach over the organization is necessary, and it's most effective when we leverage employee input, in the design of their workflow, with highly competent leadership that aligns our goals with those we serve.
Vacancies of the Treasurer's office, and the employment layoffs in 2017-2020 of critical positions (comptroller, finance manager, human resource manager, key accounting staff, and tribal Administrator) and the reduction in general fund revenue, are some of the major causes for the tribe's finances to have reached the present state.
The tribe has invested in the continued services of Jackson & Lewis, working with CBIZ (attorneys for subpoenas), Walker and Armstrong, auditors) and along with REDW (accounting consultants), our team of professionals working with myself and MWTC to secure our financial health and department integrity.
On Sunday, June 13, 2021, Jay Parkes and Tracy Decker of Walker and Armstrong presented to tribal members a review of the 2018 audit of the tribe. I, along with the finance team, are working with the audit team as we undergo the 2019 financial audit and begin our 2020 financial audit in August. Currently, Jackson & Lewis and CBIZ are conducting the audit for the 2016 MWT Gaming Authority.
Our team of professionals is working to create reporting tools designed to reflect the daily financial data of our business by the balance sheet, cash flow, revenue, expenses, and ultimately program and budget performance. As we begin to standardize specific work policies, processes, and practices, we focus on continuous improvements in every area of tribal operations, resulting in a financially stable, disciplined, and fiscally responsible organization.
The inventory- 30 day
As with all new assignments, taking inventory of every problem, process, policy, input, structure, output, deviation, operating rules, culture, and standard performance measures of what it (tribal finances) is, and what it is not, is where it all begins.
The following list of inventory resources is not available, and taking note of the problems identified.
Missing Resources
Treasurer vacant 90 days
Comptroller vacant since 2018
Finance Dept. operating at 50% staff
Unreasonable workloads and decision-making levels
Finance manager vacant since 2018
Tribal Administrator vacant since 2019 (interims only) Key Accounting Staff 2018
Human Resource Director vacant since 2019
Asset management vacant since 2017
Last Audit 2018 re-occurring findings
Staff for Drawdowns
Staff for Bank reconciliations
Approved budgets
Employee training or training programs
Employee performance standards and goals
Updated Accounting system & Financials
Central Repository for all contracts
Problems Identified
No work plan to cover workloads after layoffs
No work plan to cover the workload of Treasurer during leave
Layoff of business employees dismantled the business (oyster farm)
Layoff of finance employees dismantled finance business, (thus removal of its tribe critical infrastructure)
Layoff removed the segregation of duties to ensure financial controls work
OIMH Tax-exempt status challenged
CARES ACT active subpoena
Leadership not getting financial reports ever
Decision-making protocols unclear
No clear lines of authority
No framework for organizational development
No one single strategy for operations
No employee performance goals established
No leadership mission, vision, goals, or alignment with employee performance results
No backup training for employee coverage plans
Taking inventory becomes a never-ending task. Every day presents a new opportunity to hear a problem, identify process, policy, or transaction, apply continuous improvements, and document the necessary workflow requirements.
The Assessment
With the use of CARES Act funding in 2020, the tribe received 8.2M and was able to assist tribal citizens and sustain itself in many ways, from the impacts of COVID-19. It's been this same funding that has allowed the tribe to cover its expenses in the absence of general fund revenue into 2021.
As we set-out to plan the 2022 budget, we must include strategies for using resources. We must have confidence in our ability to recover financially back to a reasonable operating level. This confidence will come from our tribe's recent receipt of 15.2 million dollars in phase 1 of the American Recovery Plan Act, 4 million in Child Care Development grant, 1.2 million in housing, and 1.8 million in ATG P.L 93-638 BIA funding. An increase of 22.2 million dollars in less than 30 days of the new administration. Way to Recover.
Soon MWTC will be reaching out to obtain feedback from tribal citizens to gather your input into our tribe's use of ARPA funds. This is where we need to hear your voice, views and what matters to you.
Hiring key employees must be mandatory in the next expenditures. We need to bring finance operations up to the appropriate staffing levels to ensure measures and controls remain intact. Most processes are not defined, and without an employee backup plan to account for vacancies, the risk is extremely high that the business will not operate as expected.
The finance department must be staffed appropriately. This is a lesson learned from the layoffs over the past few years. Key staff and personnel are a critical component to maintaining good faith and credit. Specifically, given the multi-million dollars, we have agreed to manage with the federal government as the contractor.
The tribe must have a Finance ordinance and committee of overseers. A law of what the do's and don'ts are, standard operating methods, finance workflow and management systems, authorization levels communications standards, signature authorities, safeguarding from cyber attacks, data reporting, policies, and protocols that are being written.
In taking inventory, profiling, and assessing operations, it is evident that there are more questions than answers. However, it is clear that if we are to reach our potential, we need a significant organizational paradigm shift if we expect to excel.
The inventory and assessment remain ongoing while simultaneously we correct course with a plan(s) of action. We assess/evaluate every situation, every problem, every solution and continue to add up the condition we find ourselves in and focused on improvements. We question and keep questioning until we reach our goal—the goal of a high-performing workplace.
Upon taking office, I contributed my first week of in-kind service to the tribe. I've identified other areas to reduce expenses and called for an expense freeze on all activities not currently in an approved budget. The cancellation of the employee benefit allows for more than 52 pay weeks per year, saving over 500K over four years.
It's my goal to continue sharing highlights of our finance operations and that all tribal citizens will remain informed along the way, resulting in renewed trust in our elected leaders. I will strive to make decisions that are fact-based and data-driven, void of any political influence, separated from all isms, and execute the discipline necessary for running effective management systems. Run the day, don't let the day run you.
Respectfully,
Marie A. Stone
