PEMBROKE — A 2015 on-site monitoring report of Lumbee tribal operations shows the tribe could have to repay the U.S. Department of Housing and Urban Development more than $730,000 in federal money that was misspent between October 2012 and March 2015.

The summary report was issued March 15 by HUD’s Eastern Woodlands Office of Native American Programs in Chicago.

The incidents raised in the report all occurred before Harvey Godwin Jr. became the tribe’s chairman in January. Godwin, who said earlier this year that he considers it his responsibility to resolve issues surrounding possible misuse of federal housing money, declined Friday to answer questions about the report.

Paul Brooks was chairman of the tribe when the alleged problems occurred. Godwin defeated Brooks in a November election.

“I am not able to discuss the ongoing negotiations between the Lumbee Tribe and HUD at this point,” Godwin said in a statement. “I just want the people to know that we are being as transparent as we can, but this matter involves sensitive information that we cannot discuss at this point. As soon as HUD releases its final report, I will respond to it.”

David Thomas, grant evaluation team leader for HUD’s Eastern/Woodlands Office of Native American Programs, said earlier this month that HUD has not yet released a final report on its review of how the Lumbee Tribe has spent money it has received through the Native American Housing Assistance and Self Determination Act. A release date for the report has not been set, he said.

Thomas said that the final report could appear significantly different from the preliminary report since the tribe still has the opportunity to respond to the report’s “findings” and “concerns.”

The 22-page draft report obtained by The Robesonian identifies performance accomplishments and deficiencies revealed during HUD’s on-site review conducted in Pembroke from March 24 to March 26, 2015 . It includes recommended corrective actions to address the 12 findings and three concerns related to HUD’s Indian Housing Block Grant program.

According to the report, a “finding” is a deficiency in program performance that represents a violation of a statutory or regulatory requirements and requires that corrective action be taken. A “concern” is defined as a deficiency in program performance that does not constitute a violation of a statutory or regulatory requirement. Although not required to be addressed, HUD recommends a concern be addressed to avoid recurrence of the problem.

Among the report findings, the tribe between Oct. 1, 2013, and March 20, 2015, spent $264,985 in federal housing money for travel and attendance at meetings and conferences, some of which had nothing to do with business related to housing.

“Funds expended for non-housing related activities reduce the amount available to carry-out the eligible activities under NAHASDA, thereby reducing the potential benefit of such funds to assist low-income Indian families,” the report reads.

Although the tribe contends the 24 conferences and meetings attended during this period are legitimate expenses, HUD says no actual evidence beyond “mere assertions” has been presented to support the tribe’s position.

The report finds HUD identifying several cases of inappropriate spending by the tribe’s Youth Services Department, which provides programs at the tribe’s four Boys and Girls Clubs. These findings include: $71,835 in unallowed costs related to two lodgings and two sponsorships which have no known programmatic context; $11,654 in unallowable costs for “contractual services” that included payments for the rental of public facilities and a sound system for holiday social events, the creation of regalia, a parade float, and lettering of tribal Youth Services Department vehicles; $11,787 in unallowed costs for “cultural services” that included stipends for performers and reimbursement for cultural travel, daily expenses and parking; and $106,405 in unallowed costs for “vehicles and vehicle operations,” including purchase of additional vehicles as well as maintenance and operation of 19 vehicles for youth activities.

As with most of the findings, HUD contends that the tribe has failed to provide documentation requested to support its arguments that the expenses meet the letter of the law. Expenses charged to NAHASDA must be directly related to housing or related to activities, projects and programs associated with housing.

As one of its “concerns,” HUD questioned in the report the use of federal housing money for Youth Services Department food purchases. HUD contends the tribe spends too much housing money for food purchases, noting that housing funds are not intended to fund a food and nutritional program.

Another finding identified $264,043 in unallowable costs related to the procurement process for seven single-family homes. In its review of the procurement process, HUD found no “rationale” for how bids were taken and awarded for home construction. According to HUD, the unallowed cost includes the bid amounts on two units awarded to a contractor that the tribe has not supplied evidence proving that the bids were received within the posted deadline.

“In short, the Lumbee Tribe of North Carolina operated a bid that was entirely different from the one described in the RFP it publicly posted,” the report reads. “… The very reason why the federal regulations require public posting is so that the contractors will have accurate information upon which they can base their decision to bid.”

HUD also found that the admission and occupancy policies and procedures being followed at the Eagles Nest housing site are not in compliance with regulations. Through a sub-recipient agreement between the tribe and the North Carolina Indian Housing Authority, the housing authority is responsible for operation and maintenance of Eagles Nest homes. The agreement, however, does not include a requirement that the sub-recipient comply with NAHASDA regulations and policies.

“The implementation of an admission and occupancy policy not fully in compliance with the NAHASDA statute and applicable regulations can serve to allow for the use of NAHASDA funds for ineligible program participants,” HUD said.

NAHASDA funds can only by law be used for the benefit of low-income American Indians. According to the report, at the time of the on-site monitoring review only 28 of the 92 units at the Eagles Nest subdivision were occupied by American Indian families. At the same time, 52 units were occupied by non-American Indian families and 12 units were vacant.

Paul Brooks
https://www.robesonian.com/wp-content/uploads/2016/05/web1_brooks-goins-tribal-chairman.jpgPaul Brooks
HUD report details misspent money

By Bob Shiles

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Bob Shiles can be reached at 910-416-5165.