Audit 377864

FY End
2024-12-31
Total Expended
$4.61M
Findings
1
Programs
4
Year: 2024 Accepted: 2025-12-29

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1166740 2024-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.867 INDIAN HOUSING BLOCK GRANTS $3.35M Yes 1
21.026 HOMEOWNER ASSISTANCE FUND $983,372 Yes 0
15.141 INDIAN HOUSING ASSISTANCE $277,517 Yes 0
14.862 INDIAN COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM $2,107 Yes 0

Contacts

Name Title Type
E9V3CNMHMZN9 Jamie Navenma Auditee
5055526430 Gaby Miller Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of LHDME under programs of the federal government for the year ended December 31, 2024, and is presented on the accrual basis of accounting. 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 for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements.
LHDME has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
LHDME is approved by Southwest Office of Native American Programs (SWONAP) to allocate up to 20% of the grant funds for planning and administration costs. LHDME is approved to allocate up to 20% of grant funds for planning and administrative costs.
The accompanying Schedule is presented using the accrual basis of accounting, which is described in Note 1 to the LHDME’s financial statements.
Expenditures Per the Schedule of Expenditures of Federal Awards $ 4,609,100 Capital Purchases Funded by Grant Expenditures (714,634) Depreciation and Amortization Expense Recorded on the Statement of Revenues, Expenses, and Changes in Net Position - Noncash 588,802 Operating Expenses on the Financial Statements $ 4,483,268
Details of U.S. Department of Housing and Urban Development and U.S. Department of Treasury grants included in the Schedule are as follows: Cumulative Current Period Cumulative Grant Grant Grant Available Award Expenditures Expenditures Expenditures Grant Balance Amount 2023 2024 12/31/24 12/31/24 IHBG NAHASDA 55IH3503180 (2022) $ 1,561,006 $ 1,529,837 $ 31,169 $ 1,561,006 $ - IHBG NAHASDA 55IH3503180 (2023) 1,576,179 - 1,576,179 1,576,179 - IHBG NAHASDA 55IH3503180 (2024) 2,003,448 - 988,205 988,205 1 ,015,243 IHBG ARP 21AH3503180 (2021) 1,044,062 249,415 750,551 999,966 4 4,096 ICDBG 22-RP-35-0318-0 (2022) 1,035,000 1,032,893 2,107 1,035,000 - Homeowner's Assistance Fund (2022) 1,209,880 123,602 983,372 1,106,974 1 02,906 American Rescue Plan Act - Housing Improvement - ARPA (2024) 277,517 - 277,517 277,517 - Total $ 8,707,092 $ 2,935,747 $ 4,609,100 $ 7,544,847 $ 1,162,245
Beginning January 1, 2012, the IHBG program changed from a grant-based program, where all funds and activities are tracked back to the grant from which they were funded, to a fiscal year-based program, where funds and activities are tied only to the fiscal year in which the activities occurred. A single grant number beginning with the digits “55” (rather than “09,” “10,” etc.) replaced the traditional IHBG numbering system. Any grants with undisbursed amounts in the Line of Credit Control System (LOCCS) at the time of transition are rolled into the new grant number. IHBG funds will be added under the same grant number in LOCCS. Under this system, LOCCS will automatically disburse the oldest funds first. With the transition to the fiscal year-based system, IHBGs are no longer closed out in accordance with Notice PIH 2011-23 (which was extended until revoked, superseded, or amended by Notice PIH 2012-12).

Finding Details

2024-002 Federal Program Compliance – Special Tests – Wage Rate Requirements Federal Agency: U. S. Department of Housing and Urban Development Federal Program Title: Indian Housing Block Grant Program (IHBG) Assistance Listing Number: 14.867 Federal Award Identification Number and Year: 55IH3503180 - 2024 Award Period: 1/1/2024 – 12/31/2024  Significant Deficiency in Internal Control Over Compliance  Other Matters Criteria or specific requirement: Davis Bacon (Wage Rate Requirements): All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141–3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance. Condition: One out of five contracts tested did not have the required certified payroll completed. Questioned costs: None Context: Construction files were obtained for five projects receiving federal assistance under this grant. One out of the five items tested did not have the required certified payroll. Cause: Project was an emergency procurement and due to the low dollar amount the certified payroll was not provided. Effect: Failure to comply with federal program requirements surrounding certified payroll requirement for construction contracts that exceed $2,000. Recommendation: We recommend that LHDME reviews all construction contracts to make sure they request certified payrolls for all contracts that exceed $2,000. Views of responsible officials: We agree with this finding. In the future all construction contracts will be reviewed on an monthly basis to determine what contracts total $2,000.00 or over to make sure we have a certified payroll for these contracts.