Most tribes were completing financial audits prior to Noem call for scrutiny

Gov. Kristi Noem speaks at a town hall at Common Grounds, a Spearfish coffee shop, on March 14, 2024. (Courtesy of the Governor’s Office)

Amelia Schafer, Rapid City Journal 

RAPID CITY, S.D. – South Dakota Gov. Kristi Noem issued a statement this week calling for the Biden administration to conduct single audits of all federal funds given to the nine Oceti Sakowin tribes in South Dakota.

In a letter to U.S. Secretary of the Interior Deb Haaland, U.S. Attorney General Merrick Garland and U.S. Comptroller Gene Dodaro, Noem asked for comprehensive single audits of federal funds given to the nine tribes in South Dakota.

Specifically, Noem, a Republican, asked for an OMB Circular-A-133 audit, which is an organization-wide financial statement and federal-awards audit of a non-federal entity which expends $750,000 or more in federal funds per year.

“If single audits of these tribes have been occurring, it is not transparent as single audits are not publicly available,” Noem said in the March 26 letter. “I encourage members of the U.S. House Subcommittee on Indian and Insular Affairs and U.S. Senate Committee on Indian Affairs to demand a review of each single audit, inquire as to why an audit is not complete, and report on how each tribe is managing audit findings to improve eligibility for federal programs.”

Tribes are already required by law to have audited financial statements and compliance audits. The Single Audit Act requires an annual audit of all non-federal entities that spend over $750,000 in Federal Financial Assistance, including tribes, every fiscal year.

Records from the Federal Audit Clearinghouse, a searchable database of organizations, show prior to 2020 a majority of the nine tribes in South Dakota regularly completed detailed audits. Following 2020, the process became difficult for tribes according to leaders. An influx of funding for COVID-19 relief caused issues backlogging the process and overwhelming the treasurers.

In a January 2024 Oglala Sioux Tribe Tribal Council meeting, Treasurer Cora White Horse reported the 2020 audit is estimated to be completed by May 2024, the 2021 audit by August 2024 and the 2022 audit by December 2024.

The Flandreau Santee Sioux Tribe, Rosebud Sioux Tribe, Lower Brule Sioux Tribe and Standing Rock Sioux Tribe all completed audits for the 2022 fiscal year, the most recently available period. The Rosebud Sioux Tribe’s 2022 and 2021 audits are available to the public and can be downloaded via the Federal Audit Clearinghouse.

In the statement, Noem said she is calling for a financial audit to verify the need for more law enforcement funding provided to tribal nations while also reiterating her claim that drug cartels are operating on tribal land in South Dakota.

Noem’s letter referenced Oglala Sioux Tribe President Frank Star Comes Out’s Dec 20, 2023 testimony to the U.S. Committee on Indian Affairs in support of OST’s lawsuit against the federal government. In the testimony, Star Comes Out cites a lack of law enforcement presence to drug cartel movement on the Pine Ridge Reservation.

Noem did not respond to a request for comment, instead referring back to the March 26 press release.

“I stand ready to advocate for more public safety dollars and have even shown a willingness to use state resources to fill the gap that the Bureau of Indian Affairs has left. But there must be accountability and transparency to further these efforts,” Noem said in the letter.

On March 13, comments made by Noem at a town hall meeting in Mitchell, S.D. and Winner, S.D. sparked outrage amongst tribal governments in South Dakota. During the Mitchell town hall Noem attributed low graduation and attendance rates to a perceived “lack of parental involvement.” At the Winner town hall, she alleged tribal governments are benefitting from cartel presence on their reservations.

In the days following these comments, the Oglala Sioux Tribe, Cheyenne River Sioux Tribe, Sisseton Wahpeton Oyate, Crow Creek Sioux Tribe, Rosebud Sioux Tribe, Lower Brule Sioux Tribe and Standing Rock Sioux Tribe all condemned Noem’s statements.

“Governor Noem’s wild and irresponsible attempt to connect tribal leaders and parents with Mexican drug cartels is a sad reflection of her fear-based-politics that do nothing to bring people together and solve problems,” said Standing Rock Sioux Tribe Chairwoman Janet Alkire in a March 20 press release.

Alkire added only seven police officers patrol the over 1 million-acre Standing Rock Reservation. Currently, only two officers can patrol the reservation’s 12,000-person population at one time.

The Oglala Sioux Tribe and Crow Creek Sioux Tribe have previously voiced similar issues. Both reservations have a limited number of police officers to patrol reservation lands despite their vast land bases.