Audit 361089

FY End
2024-09-30
Total Expended
$83.05M
Findings
12
Programs
4
Organization: Navajo Housing Authority (AZ)
Year: 2024 Accepted: 2025-06-30
Auditor: Blue Arrow

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
569818 2024-002 Material Weakness Yes F
569819 2024-003 Material Weakness Yes E
569820 2024-002 Material Weakness Yes F
569821 2024-003 Material Weakness Yes E
569822 2024-002 Material Weakness Yes F
569823 2024-003 Material Weakness Yes E
1146260 2024-002 Material Weakness Yes F
1146261 2024-003 Material Weakness Yes E
1146262 2024-002 Material Weakness Yes F
1146263 2024-003 Material Weakness Yes E
1146264 2024-002 Material Weakness Yes F
1146265 2024-003 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.867 Indian Housing Block Grants $694,868 Yes 2
14.899 Tribal Hud-Va Supportive Housing Program $349,234 - 0
21.023 Emergency Rental Assistance Program $205,878 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $80,785 - 0

Contacts

Name Title Type
E62MBA332NG6 Raymond Nopah Auditee
9288712607 Albert Hwu Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The significant accounting policies used in preparing the SEFA follow the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Not applicable The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Authority under federal government programs for the year ended September 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Summary of Significant Accounting Policies Accounting Policies: The significant accounting policies used in preparing the SEFA follow the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Not applicable The Schedule is presented using the accrual basis of accounting, which is the method used to prepare the Authority’s basic financial statements. Note 1 of the Authority’s basic financial statements describes the significant accounting policies used by the Authority. Such expenses are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement.
Title: Indirect Cost Rate Accounting Policies: The significant accounting policies used in preparing the SEFA follow the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Not applicable The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements Accounting Policies: The significant accounting policies used in preparing the SEFA follow the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Not applicable The following is a reconciliation of the expenditures reported on the schedule of expenditures of federal awards to the expenditures reported on the statement of revenues, expenses, and changes in net position included in the accompanying financial statements: Expenditures according to the schedule of expenditures of federal awards $ 83,052,880 Less: capital expenditures (38,629,726) Add: expenditures funded by nonfederal sources 19,818,471 Expenditures on financial statements $ 64,241,625

Finding Details

2024-002 Internal Controls over Compliance, Material Noncompliance - Equipment and Real Property Management (Material Weakness) Repeated and Modified (Prior Year Finding 2023-003) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirements: 2 CFR Section 200.313 (d) 1 requires the Authority to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, acquisition date, cost of the property, percentage of Federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The Authority lacks a comprehensive capital asset tracking system or roll forward mechanism to accurately monitor capital assets. This includes maintaining essential information such as descriptions, serial or identifying numbers, funding sources, locations, and conditions. Cause: Procedures are not in place to ensure that a capital assets listing of buildings, real property, and equipment is regularly maintained. Effect: The Authority is not in compliance with federal requirements related to equipment and real property management. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: The Authority should develop a system to track capital assets, including description, serial or other identifying number, source of funding, location, and condition.
2024-003 Internal Control Over Compliance, Material Noncompliance - Eligibility (Material Weakness) Repeated and Modified (Prior Year Finding 2023-005) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirement: Per 25 USC 4133(d), each grant recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds. The Authority has developed such policies to include a verification of applicant income, as well as an annual redetermination of rent based upon a recertification of income. Condition: For the IHBG program, seven out of forty-five participants tested did not follow the eligibility requirements in accordance with the Authority's policies. Cause: The program did not perform the required eligibility determinations in accordance with its policies. Effect: The rental charges collected by the Authority or assistance provided by the Authority may not be reflective of the program requirements. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: We recommend that the Authority adhere to existing policies and procedures requiring eligibility certification or recertifications for all participants of the program.
2024-002 Internal Controls over Compliance, Material Noncompliance - Equipment and Real Property Management (Material Weakness) Repeated and Modified (Prior Year Finding 2023-003) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirements: 2 CFR Section 200.313 (d) 1 requires the Authority to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, acquisition date, cost of the property, percentage of Federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The Authority lacks a comprehensive capital asset tracking system or roll forward mechanism to accurately monitor capital assets. This includes maintaining essential information such as descriptions, serial or identifying numbers, funding sources, locations, and conditions. Cause: Procedures are not in place to ensure that a capital assets listing of buildings, real property, and equipment is regularly maintained. Effect: The Authority is not in compliance with federal requirements related to equipment and real property management. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: The Authority should develop a system to track capital assets, including description, serial or other identifying number, source of funding, location, and condition.
2024-003 Internal Control Over Compliance, Material Noncompliance - Eligibility (Material Weakness) Repeated and Modified (Prior Year Finding 2023-005) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirement: Per 25 USC 4133(d), each grant recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds. The Authority has developed such policies to include a verification of applicant income, as well as an annual redetermination of rent based upon a recertification of income. Condition: For the IHBG program, seven out of forty-five participants tested did not follow the eligibility requirements in accordance with the Authority's policies. Cause: The program did not perform the required eligibility determinations in accordance with its policies. Effect: The rental charges collected by the Authority or assistance provided by the Authority may not be reflective of the program requirements. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: We recommend that the Authority adhere to existing policies and procedures requiring eligibility certification or recertifications for all participants of the program.
2024-002 Internal Controls over Compliance, Material Noncompliance - Equipment and Real Property Management (Material Weakness) Repeated and Modified (Prior Year Finding 2023-003) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirements: 2 CFR Section 200.313 (d) 1 requires the Authority to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, acquisition date, cost of the property, percentage of Federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The Authority lacks a comprehensive capital asset tracking system or roll forward mechanism to accurately monitor capital assets. This includes maintaining essential information such as descriptions, serial or identifying numbers, funding sources, locations, and conditions. Cause: Procedures are not in place to ensure that a capital assets listing of buildings, real property, and equipment is regularly maintained. Effect: The Authority is not in compliance with federal requirements related to equipment and real property management. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: The Authority should develop a system to track capital assets, including description, serial or other identifying number, source of funding, location, and condition.
2024-003 Internal Control Over Compliance, Material Noncompliance - Eligibility (Material Weakness) Repeated and Modified (Prior Year Finding 2023-005) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirement: Per 25 USC 4133(d), each grant recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds. The Authority has developed such policies to include a verification of applicant income, as well as an annual redetermination of rent based upon a recertification of income. Condition: For the IHBG program, seven out of forty-five participants tested did not follow the eligibility requirements in accordance with the Authority's policies. Cause: The program did not perform the required eligibility determinations in accordance with its policies. Effect: The rental charges collected by the Authority or assistance provided by the Authority may not be reflective of the program requirements. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: We recommend that the Authority adhere to existing policies and procedures requiring eligibility certification or recertifications for all participants of the program.
2024-002 Internal Controls over Compliance, Material Noncompliance - Equipment and Real Property Management (Material Weakness) Repeated and Modified (Prior Year Finding 2023-003) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirements: 2 CFR Section 200.313 (d) 1 requires the Authority to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, acquisition date, cost of the property, percentage of Federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The Authority lacks a comprehensive capital asset tracking system or roll forward mechanism to accurately monitor capital assets. This includes maintaining essential information such as descriptions, serial or identifying numbers, funding sources, locations, and conditions. Cause: Procedures are not in place to ensure that a capital assets listing of buildings, real property, and equipment is regularly maintained. Effect: The Authority is not in compliance with federal requirements related to equipment and real property management. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: The Authority should develop a system to track capital assets, including description, serial or other identifying number, source of funding, location, and condition.
2024-003 Internal Control Over Compliance, Material Noncompliance - Eligibility (Material Weakness) Repeated and Modified (Prior Year Finding 2023-005) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirement: Per 25 USC 4133(d), each grant recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds. The Authority has developed such policies to include a verification of applicant income, as well as an annual redetermination of rent based upon a recertification of income. Condition: For the IHBG program, seven out of forty-five participants tested did not follow the eligibility requirements in accordance with the Authority's policies. Cause: The program did not perform the required eligibility determinations in accordance with its policies. Effect: The rental charges collected by the Authority or assistance provided by the Authority may not be reflective of the program requirements. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: We recommend that the Authority adhere to existing policies and procedures requiring eligibility certification or recertifications for all participants of the program.
2024-002 Internal Controls over Compliance, Material Noncompliance - Equipment and Real Property Management (Material Weakness) Repeated and Modified (Prior Year Finding 2023-003) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirements: 2 CFR Section 200.313 (d) 1 requires the Authority to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, acquisition date, cost of the property, percentage of Federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The Authority lacks a comprehensive capital asset tracking system or roll forward mechanism to accurately monitor capital assets. This includes maintaining essential information such as descriptions, serial or identifying numbers, funding sources, locations, and conditions. Cause: Procedures are not in place to ensure that a capital assets listing of buildings, real property, and equipment is regularly maintained. Effect: The Authority is not in compliance with federal requirements related to equipment and real property management. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: The Authority should develop a system to track capital assets, including description, serial or other identifying number, source of funding, location, and condition.
2024-003 Internal Control Over Compliance, Material Noncompliance - Eligibility (Material Weakness) Repeated and Modified (Prior Year Finding 2023-005) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirement: Per 25 USC 4133(d), each grant recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds. The Authority has developed such policies to include a verification of applicant income, as well as an annual redetermination of rent based upon a recertification of income. Condition: For the IHBG program, seven out of forty-five participants tested did not follow the eligibility requirements in accordance with the Authority's policies. Cause: The program did not perform the required eligibility determinations in accordance with its policies. Effect: The rental charges collected by the Authority or assistance provided by the Authority may not be reflective of the program requirements. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: We recommend that the Authority adhere to existing policies and procedures requiring eligibility certification or recertifications for all participants of the program.
2024-002 Internal Controls over Compliance, Material Noncompliance - Equipment and Real Property Management (Material Weakness) Repeated and Modified (Prior Year Finding 2023-003) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirements: 2 CFR Section 200.313 (d) 1 requires the Authority to maintain property records that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, acquisition date, cost of the property, percentage of Federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. Condition: The Authority lacks a comprehensive capital asset tracking system or roll forward mechanism to accurately monitor capital assets. This includes maintaining essential information such as descriptions, serial or identifying numbers, funding sources, locations, and conditions. Cause: Procedures are not in place to ensure that a capital assets listing of buildings, real property, and equipment is regularly maintained. Effect: The Authority is not in compliance with federal requirements related to equipment and real property management. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: The Authority should develop a system to track capital assets, including description, serial or other identifying number, source of funding, location, and condition.
2024-003 Internal Control Over Compliance, Material Noncompliance - Eligibility (Material Weakness) Repeated and Modified (Prior Year Finding 2023-005) Federal Program Information: Funding Agency: Title: Federal Assistance Listing Number: Award Year and Number: Department of Housing and Urban Development Indian Housing Block Grant 14.867 2024; 55IH0402810 Criteria or specific requirement: Per 25 USC 4133(d), each grant recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds. The Authority has developed such policies to include a verification of applicant income, as well as an annual redetermination of rent based upon a recertification of income. Condition: For the IHBG program, seven out of forty-five participants tested did not follow the eligibility requirements in accordance with the Authority's policies. Cause: The program did not perform the required eligibility determinations in accordance with its policies. Effect: The rental charges collected by the Authority or assistance provided by the Authority may not be reflective of the program requirements. Questioned Costs: The extent of the questioned costs is unknown. Auditor's Recommendation: We recommend that the Authority adhere to existing policies and procedures requiring eligibility certification or recertifications for all participants of the program.