Housing Authority of the Apache Tribe of OklahomaTribal Government

2025-001 Budgets (Material Weakness) CONDITION: The Housing Authority of the Apache Tribe of Oklahoma did not monitor budgets for the fiscal year under audit. Other than initial grant budgets submitted and approved by the grantor agencies, no other budgetary controls were utilized in fiscal year 2025. CRITERIA: The OMB Uniform Guidance outlines procedures over the establishment, review and modification of budgets. As well, prudent management principles dictate the use of budgets to control spending. According to the Housing Authority’s Financial Management Policy, the Executive Director is responsible for monitoring budgets and providing updates to the Board of Commissioners at least quarterly. CAUSE: The Housing Authority of the Apache Tribe of Oklahoma did not properly monitor budgets for the fiscal year under audit. EFFECT: The Housing Authority overspent their Indian Housing Block Grant by approximately $185,000 in fiscal year 2025. RECOMMENDATION: The Housing Authority of the Apache Tribe of Oklahoma should monitor budgets throughout the year to prevent overspending. Proper planning through effective budgeting procedures can help significantly in controlling deficit spending. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.

2025-002 Support for Federal Advances CONDITION: The Housing Authority had an unrestricted cash balance of $20,894 at June 30, 2025 and the total amount of unearned revenue at that date of $69,368. The shortfall of cash balance is calculated as follows: (See table in Schedule of Findings and Questioned Costs) CRITERIA: Grant funds are required to be expended only for activities authorized by grant agreements. Those agreements cover expenditures for the current fiscal year and are not authorized for advanced spending into future year’s funding. Agencies require sufficient cash balances to cover unearned revenues. OMB Uniform Guidance 2CFR, Part 200.302 Financial Management - addresses the award recipient’s requirement to properly safeguard Federal awards assets, “Effective control over and accountability for all funds, property, and assets. The recipient or subrecipient must safeguard all assets and ensure they are used solely for authorized purposes.” CAUSE: The Housing Authority overspent grant programs in the current year causing advanced money to be drawn from next fiscal year’s funding balance. These are carried as unearned revenue in the current year. EFFECT: The awarding agency could disallow the use of advanced funding until such time that appropriate draws are made for the programs or cash balance is sufficient to cover the unearned revenue amount. RECOMMENDATION: We recommend the Authority utilize grant dollars only for authorized purposes and maintain guaranteed or insured cash balances sufficient to cover unearned revenue amounts. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan.