Too easy to lose $500,000
Navajo programs, chapters lose money
if corrections not made

By Kathy Helms
Diné Bureau

WINDOW ROCK — Failure to address sanctions and complete corrective actions have cost five Navajo Nation programs under the Executive Branch and six chapters nearly a half million dollars.

With a new budget session just around the corner, the Budget and Finance Committee, with a directive from member Jonathan Nez, told President Joe Shirley Jr. and program directors they want the corrective actions completed in 30 days.

“We shouldn’t be sitting here listening to something that happened in ‘03. Those are things that should have been taken care of,” said B&F’s Nelson Begaye said during Tuesday’s meeting.

Acting Auditor General Elizabeth Begay said the Capital Improvement Office has been under sanction since September 2003; Navajo-Hopi Land Commission Office since May 2005; Design and Engineering Services since August 2007; Insurance Services Department since October 2007; and Navajo Area Agency on Aging since March.

Sawmill and Nageezi chapters have been under sanction since 2003, Kayenta since 2004, Churchrock since 2005, Red Valley since 2006, and Bodaway Gap since 2007.
In an April 7 memorandum to President Shirley, B&F Chairman LoRenzo Bates requested a status report from the President’s Office regarding the audit deficiencies and getting the programs and chapters out of sanction.

Shirley told the committee, “Yes, I’m a part of the report given on the sanctioned programs situated within the Executive Branch, and there I concur with the Auditor General’s report — there are some that are still sanctioned.
“I’ll give it everything I’ve got to work with staff and the Auditor General to get it off the books. I do agree with the Honorable Mr. Begaye. We need to get it behind us and look at the challenges that are facing us today.”

Bates said $482,449.32 has been withheld from programs and chapters as a result of the sanctions. “As they are withheld, they become part of the carryover.”

Controller Mark Grant Controller said they needed clarification from Office of Management and Budget, but said he believes the budgets that were set aside for the programs sanctioned may have reverted to the Unreserved Undesignated Fund Balance at the end of each year.
B&F’s Lorenzo Curley — also a member of the Navajo-Hopi Land Commission – said he feels the program is ready to come out of sanction, adding, “Elizabeth has the authority to make that decision unilaterally.” The program has had $16,282 withheld to date.

Begay said the program’s deficiency dates back to 2003 when $1.5 million was appropriated to construct 48 homes on Hopi Partitioned Land and the commission was authorized to manage the project.

“To date, they’ve completed 21 homes. Out of those 21 homes we’re still waiting for an inspection report from a licensed electrician and plumber just to make sure that those people occupying the 21 homes can connect to NTUA (Navajo Tribal Utility Authority). Lack of that, they’re not able to get any utility connections,” she said.

NHLCO Executive Director Roman Bitsuie said, “We only secured the money and we gave that money to Housing Services and they were the ones that were building the homes. ... We’re caught in the middle because we provided the funding.

“We will complete those homes, because those are our grandmothers out there. We’re not going to deviate from what we set out to do.”

Vice Chairman Leonard Chee said it is incumbent on the department managers to address the sanctions because they’re going to be before Budget and Finance asking for funding for 2009. “If you fail to do your job in the first place, why should be give you more money?” he asked.