The White Mountain Apache Housing Authority misspent millions of federal dollars on entertainment, gift certificates and other improper items, and is so badly managed it should be considered for receivership, according to a U.S. Department of Housing and Urban Development audit released this week.

A HUD Office of Inspector General report issued Tuesday also says the agency's Southwest Office of Native American Programs should order the tribal housing agency to reimburse $2.3 million and acknowledge the unsupported spending of an additional $8.2 million...