Audit finds major financial, housing lapses at Navajo veterans agency

Missing housing records, payments to people who were not eligible and a donated vehicle used for the wrong purpose have pushed Navajo veterans services back into the spotlight in Window Rock and across Apache County, where veterans in Chinle and nearby communities depend on the agency for housing and financial help.

Legislation 0095-26, posted May 7, would have the 25th Navajo Nation Council formally accept Audit Report No. 22-06 and approve a corrective action plan signed by former Navajo Nation Veterans Administration Executive Director James Zwierlein. The Health, Education and Human Services Committee tabled the bill on a 3-2 vote May 18, sending it to the Budget and Finance Committee, which has final authority over audit reports and has not yet set a hearing date.

The performance audit, released in April 2022, covered fiscal years 2016 through 2020 and found 23 problems inside the Navajo Nation Veterans Administration. HeinfeldMeech & Co., working under contract with the Office of the Auditor General, conducted fieldwork at headquarters in Window Rock and offices in Chinle, Crownpoint, Fort Defiance, Shiprock and Tuba City, reviewed financial assistance payments, observed housing committee meetings and used a Python program to test compliance with payment rules.

One of the most serious findings, Audit Finding 2, said management failed to regularly review housing program finances. The audit flagged pension-related journal entries posted during years when the housing program reported no salary expenses, and current managers could not explain those entries. Auditors also found missing housing records, payments made to people who were not eligible and a donated vehicle used for a purpose other than the one intended. Together, those problems point to breakdowns in internal controls that could slow or distort help for veterans waiting on housing or assistance decisions.

The stakes are high because the Navajo Nation’s Veterans Trust Fund has long been the backbone of these programs. A 2006 resolution authorized an annual transfer of 4% of projected Navajo Nation revenues to the trust fund, later split evenly between the Financial Assistance Program and the Veterans Housing Program. In February 2025, the Navajo Nation approved a $50 million Fiscal Recovery Fund housing policy for veterans, and leaders said it was meant to prioritize veterans with critical housing needs, service history and displacement.

The agency is still actively managing housing and home-improvement programs, which makes the unresolved audit findings especially pressing for veterans in Apache County and beyond. With Budget and Finance now holding the final vote and no hearing date announced, the next step will determine whether the corrective plan moves forward or the same administrative failures keep shadowing service delivery.