Auditor Flags Accounting Problems at Urban Indian Health Council

An investigation found that the National Council of Urban Indian Health received $23.6 million in federal funds over four years, even as an auditor flagged accounting problems in 2022 and 2023. In 2022, the Council received $200,000 in federal funds before having eligible expenses to justify the payment. The following year, the Council counted too much of a promised contribution as revenue, forcing a correction that reduced reported revenue and expected collection by $200,000.

The material weaknesses identified by the auditor relate to internal control deficiencies in the nonprofit's financial functions. These findings raise questions about the management of federal funding intended for health programs.