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The U.S. Department of Housing and Urban Development's (HUD) Office of Inspector General conducted a capacity review of the Ft. Belknap Indian Community (Ft. Belknap) to determine whether there was evidence that Ft. Belknap lacked the capacity to adequately administer its Recovery Act funding in accordance with requirements. Our review of the Authority was limited to gaining an understanding of internal controls over the administration of Recovery Act funds and was limited to our stated objective and should not be considered a detailed analysis of the Authority’s internal controls or operations.

We found weaknesses in Fort Belknap’s administration of its block grant program that could
significantly affect its capacity to administer its Recovery Act funding. Fort Belknap

Completed renovation work in violation of its Indian housing plans,
Completed purchases in violation of cost principles for Federal awards,
Did not submit its audited financial statements when required,
Did not pursue collection of its past-due tenant accounts receivable, and
Did not maintain equity accounts on its home buyers.
We recommended that HUD Increase monitoring and oversight of Fort Belknap’s administration and disbursement of Recovery Act funds, to include increased on-site monitoring if deemed necessary, to ensure compliance with program rules and regulations.