Reports

Castro recommends Treasury OIG personnel follow-up with Navajo Nation
management and request that missing documentation to support expenditures is
provided and necessary corrections are made in the GrantSolutions portal.

Based
on Navajo Nation’s responsiveness to Treasury OIG’s requests and its ability to
provide sufficient documentation, we recommend Treasury OIG personnel
determine the feasibility of performing a focused audit for Grants greater than or
equal to $50,000, Aggregate Reporting less than $50,000, and Aggregate
Payments to Individuals.

For Aggregate Payments to Individuals, we recommend
a specific focus on Navajo Nation’s non-payroll COVID-19 hardship claims, as well
as payroll expenditures for employees substantially dedicated to COVID-19
recovery efforts.

Treasury OIG follow-up on the following
outstanding items:
1. Ensure Navajo Nation management re-issues $ in stale-dated checks before the end of the CRF period of performance end date of
December 31, 2022, and ensures that checks are cashed by the beneficiaries, or funds are returned to Treasury.

2. Ensure Navajo Nation management has reversed the $ in subrecipient incurred costs that they determined to be ineligible as a result of
their internal investigation.

3. Confirm that Navajo Nation management has reversed $ in duplicate hardship check payments that were fraudulently cashed by tribal citizens and recorded by management within the Aggregate Payments to Individuals payment type in the Cycle 331 GrantSolutions submission.

4. Follow-up on corrective action related to $141,187 in questioned costs reported in Single Audit finding number 2020-009.

5. Follow-up to obtain the status of the Navajo Nation’s 2021 Single Audit.

6. Obtain evidence to verify whether tribal entities are separate legal and tax entities, and based on the information, determine whether Navajo Nation management has properly recorded these transactions in GrantSolutions.