New report raises concerns about Chinle Chapter’s sub-recipient agreements

WINDOW ROCK – Chinle Chapter President Rosanna Jumbo-Fitch reported the chapter’s sub-recipient agreements, raising significant concerns during Tuesday’s Budget and Finance Committee meeting.

Chinle Chapter has five sub-recipient agreements, better known as SRA, that are in progress for its APRA projects. The chapter was allocated $8.8 million.

Chinle Delegate Shawna Ann Claw questions who would be accountable for that amount. She alleges not being included in any of the chapter’s project discussions and asked to be included.

According to emails shared with Claw, the Chinle Chapter included the Navajo Nation Washington Office, U.S. Arizona Representative Eli Crane, and Delegate Eugenia Charles-Newton.

Based on Jumbo-Fitch’s report, Claw believes that laws and regulations are being avoided with the chapter’s projects at hand.

Claw read an email shared with her suggesting that Charles-Newton, the Law and Order chairwoman, gives the go-ahead to the Chinle Chapter to move forward with projects. This raised a significant concern as the projects by the Chinle Chapter are avoiding federal and tribal laws and regulations.

Report findings

Claw noticed some discrepancies, one being cost, with the ARPA projects.

The Division of Community Development provided Claw with a report suggesting state cost amounts, which differ from what the Chinle Chapter reported.

Jumbo-Fitch said Chinle has received sub-recipient agreements of $5.9 million. Last May, Chinle expended $3.6 million, which Jumbo-Fitch said was disbursed 100 percent. In January, the chapter received $2.2 million, of which 50% had been disbursed.

Jumbo-Fitch added that an external sub-recipient agreement was completed 50 percent by Day-At-A-Time Club, which totals $250,000. Chinle Chapter is completing projects three and four. Other project costs have yet to be spent.

According to Claw, $750,000 in the Chinle Chapter’s project was suggested to be audited as any chapter expending that amount in a fiscal year would need to provide a detailed expense report.

Claw asked the BFC for legal opinion to see if the Chinle Chapter has met the requirements because it entails ARPA funding.

Laws and regulations

“What I’m finding out is that within these emails, they (Chinle Chapter) are requesting for the U.S. Army Corps of Engineers to issue permits,” Shawna Ann Claw said.

The Chinle community suffered a massive flood last year.

Claw said the Navajo Nation has a federal mandate to follow the U.S. Environment Protection Agency and Federal Emergency Management Agency regulations when preparing for natural disasters.

Claw added that the Chinle Chapter must also submit an emergency management plan. Based on the email discussion she received, the project is not feasible.

Claw reinstated that $8.8 million is large and would not want any chapters to be mishandling funding.

“How do we get them (chapters) to do the correct funding and reporting,” asked Claw.

Accountability

Each certified chapter can use an IDIQ, known as indefinite delivery indefinite quantity, to become their own project managers.

Shawna Ann Claw said with IDIQ, chapters are bonded and warrant their work.

Based on the report by the Chinle Chapter, Claw said the Summer Youth Employment and the Public Employment Program are aiding assistance in the chapter’s bathroom addition project.

The chapter uses untrained and unlicensed individuals to help build bathroom additions.

“I have reports of children, young kids, they are working on these bathroom additions,” Claw said. “I’ve heard people say that there is waste,” meaning these individuals don’t know how to use tools to cut and measure.

“Our child labor laws, are they being complied with?” asked Claw. “These are some of the questions that I have, and those are in the back of my mind because God forbid that one of our children gets hurt on one of those construction.”

Claw added that the bathroom additions for the elders are also not in compliance, as they have holes where mice and snakes could potentially enter the home or building.

“So how do we (Council delegates) maintain accountability if the delegates are being left out of the discussion?” asked Claw. “That poses as a problem.”

Sub-recipient agreements

Controller Sean McCabe said when the Navajo Nation signs SRAs for chapters, obligations need to be met.

McCabe said any chapter with sub-recipient agreements is responsible for its audits, but chapters are still responsible for reporting and project reporting.

“If a chapter receives ARPA funding or any funding and expends more than $750,000 in any given fiscal year, they (chapter) are then responsible for a single audit,” McCabe said.

SRAs are then assigned to different divisions, like the Division of Community Development.

Each delegate was allocated $8 million for regional development projects, which was given to the chapters based on the delegate’s allocation.

McCabe said DCD monitors non-certified chapters and will be audited by the Navajo Nation auditor general’s office.

McCabe said the Navajo Nation is the primary recipient of the ARPA funding distributed to delegates and chapters. He added that the Nation is still the prime recipient if the funds are mishandled, regardless of who is responsible.
Council Delegate Amber Kanazbah Crotty asked who is monitoring sub-recipient agreements.

Executive Director Lisa Jymm with Fiscal Recovery Fund said they review the scope of work when sub-recipient agreements are submitted.

“We are monitoring the reporting,” said Jymm, who said beginning in April, the fiscal recovery fund office will be visiting chapters.

Jymm said the Chinle Chapter would be the first to visit since it is further ahead with its projects and funding.

Claw stated that the Bureau of Indian Affairs responded to the Chinle Chapter’s report as unacceptable because of many concerns about laws and regulations.

Crotty motioned for a progress report to ensure the report is addressed thoroughly, especially if it pertains to ARPA funding.

“We are allowing enough individuals to review the documents,” Crotty said.

Delegate Shaandiin Parrish, the BFC chairwoman, advised Chinle Chapter officials to submit all documents to Lisa Jymm. They said they would meet with the DOJ, DCD, and Shawna Ann Claw for further discussion.

The BFC made a motion to defer the report.

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