Navajo Housing Authority

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.