Sanctions proposed against veterans' agency

The Human Services Committee will decide whether or not to issue sanctions against the Department of Navajo Veterans Affairs and its director at its meeting Monday.

The sanctions would penalize the agency for failing to implement a corrective action plan approved by the Budget and Finance Committee in September2007. Delegate Leslie Dele (Tonalea) is sponsoring the proposed sanctions, which are based on the agency's failure to correct operational problems identified by tribal auditors.

Under the sanctions, the Office of the Controller would withhold 10 percent of the DNVA budget and withholding 20 percent of the department director's salary.

Both penalties would remain in place until DNVA demonstrates to the Office of the Auditor General that it has fully implemented the corrective action plan.

The committee is scheduled to meet Monday at 10 a.m. in the north conference room of the Navajo Nation Council Chambers.

The corrective action plan is a result of a 2007 audit of DNVA that focused on how the department administers its financial assistance programs.

The audit found that DNVA funds are not used in the most efficient and equitable manner, that the agency needs to strengthen its polices and procedures, and that controls over financial assistance programs need improvement.

DNVA was established in 1972 to fund programs and services to benefit Navajo veterans. Among the responsibilities of the department is to issue financial assistance to veterans to help defray costs and expenses associated with emergency, transportation, traditional healing ceremonies, burial,honor/color guard, and self-help housing materials.

Among the major concerns listed in the audit report was that financial assistance was given contrary to DNVA's policies and that some requests lacked supporting documentation to show the need for assistance. Another concern is that some veterans received two or more emergency disbursements in the same fiscal year and some were paid more than that allowable amount. Others were qualified but were turned away empty-handed because there was no money.

The audit findings also showed housing policies are implemented inconsistently and veteran status was not properly verified.

In December, the auditor general issued a follow-up review, which found that out of 20 corrective measures approved by B&F and agreed to by DNVA, only four have been implemented.

The agency has gotten better about verifying veteran status, making veteran files consistent among the five agencies, training staff on records management,and issuing checks to vendors.

Reforms still to be made include:

• Provide training to all DNVA staff and the veteran organizations on policy and procedures.
• Re-evaluate policies and procedures, including the one-time assistance policy, and revise accordingly.
• Develop detailed procedures for receiving, reviewing, evaluating and determining assistance.
• Verify clients are enrolled with their respective chapters.
• Provide proper training and orientation on fund management to DNVA staff and chapter veterans' organizations.
• Develop reliable veterans statistical data by the department.

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