No Halo News · Sourced development
Center Square reported recurring grant-accounting deficiencies at National Council of Urban Indian Health, alongside corrective steps
Center Square reported that independent audits identified material internal-control weaknesses in 2022 and 2023 while the National Council of Urban Indian Health received substantial federal funding. The reported issues included receiving $200,000 before having eligible expenses and later overstating the value of a conditional contribution, requiring a $200,000 accounting correction. A later deficiency was less severe, and the organization's former finance director said new accounting software improved controls and that the earlier revenue-recognition problem was not repeated in the next audit.
Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.
Donor relevance
Why this matters
Repeated control deficiencies can increase the risk of inaccurate reporting or grant noncompliance at an organization managing millions of dollars in federal funds. The reported reduction in severity and adoption of new accounting software are meaningful corrective signals, but staffing and control capacity remain relevant.
Attribution
Who reported or established this
The findings were attributed to independent audits by Sikich and reported by Center Square. Corrective-action information was attributed to the organization's former finance director and audit responses.
Evidence limits
What remains unverified
No Halo has not independently re-audited the organization or established fraud, intentional misconduct or diversion of grant money. An internal-control finding does not by itself prove that funds were stolen or programs failed.
Right of reply
Organization response
In audit responses, the organization attributed the earlier weaknesses to finance-staff turnover and rapid growth in size and scope. Its former finance director said new accounting software improved controls. Current staff did not respond to Center Square's four requests for comment.
Classification
How No Halo records this event
Event type: Audit Finding. Current state: Reported. No Halo preserves the current procedural state rather than treating every mention as a finding.
Published October 14, 2026 · Last verified October 15, 2026. See an error or a later outcome? Submit a correction or right of reply.