Audit 349411

FFinding Number: 2024-001 Description: Reporting of major program grant expenditures Repeat Finding: Yes Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements; non-material non-compliance Questioned Costs: None Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, 2020-OR-430-LT, 2020-OR-430-HL, 2020-OR-430-23, 2020-OR-430-SS Condition: The Organization records its transactions in a general ledger system capable of segregating revenue and expenses by grant, but we have noted there were inconsistencies in how expenses were recorded among the various active VA Supportive Services for Veteran Families (SSVF) grants that began in prior fiscal years. Due to these inconsistencies, the agency is not able to reconcile federal expenditures reported on its Federal Financial Reports (FFRs) to specific segments in the general ledger, nor accurately report expenses incurred for each individual SSVF grant on the schedule of expenditures of federal awards. Criteria: 2 CFR 200, Section 200.62 (Uniform Guidance) requires the following: Internal control over compliance requirements for Federal awards means a process implemented by a non-Federal entity designed to provide reasonable assurance regarding the achievement of the following objectives for Federal awards: (a) Transactions are properly recorded and accounted for, in order to: (1) Permit the preparation of reliable financial statements and Federal reports; (2) Maintain accountability over assets; and (3) Demonstrate compliance with Federal statutes, regulations, and the terms and conditions of the Federal award; (b) Transactions are executed in compliance with: (1) Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program; and (2) Any other Federal statutes and regulations that are identified in the Compliance Supplement; and (c) Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition. Cause: Due to turnover at the Organization and its fiscal service providers, there were inconsistencies in internal controls and processes to code expenditures under the proper SSVF grant in prior years, which had a carry-over effect into this fiscal year for multi-year grants. Effect: As a result of the matter identified in the condition paragraph, a significant deficiency in the Organization’s internal controls over compliance and a non-material non-compliance exists. Recommendation: We recommend the Organization continue to implement procedures to ensure it is recording expenditures in a consistent basis to provide adequate accountability of federal funds and properly support expenditure reports submitted to the funding source. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.

FFinding Number: 2024-001 Description: Reporting of major program grant expenditures Repeat Finding: Yes Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements; non-material non-compliance Questioned Costs: None Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, 2020-OR-430-LT, 2020-OR-430-HL, 2020-OR-430-23, 2020-OR-430-SS Condition: The Organization records its transactions in a general ledger system capable of segregating revenue and expenses by grant, but we have noted there were inconsistencies in how expenses were recorded among the various active VA Supportive Services for Veteran Families (SSVF) grants that began in prior fiscal years. Due to these inconsistencies, the agency is not able to reconcile federal expenditures reported on its Federal Financial Reports (FFRs) to specific segments in the general ledger, nor accurately report expenses incurred for each individual SSVF grant on the schedule of expenditures of federal awards. Criteria: 2 CFR 200, Section 200.62 (Uniform Guidance) requires the following: Internal control over compliance requirements for Federal awards means a process implemented by a non-Federal entity designed to provide reasonable assurance regarding the achievement of the following objectives for Federal awards: (a) Transactions are properly recorded and accounted for, in order to: (1) Permit the preparation of reliable financial statements and Federal reports; (2) Maintain accountability over assets; and (3) Demonstrate compliance with Federal statutes, regulations, and the terms and conditions of the Federal award; (b) Transactions are executed in compliance with: (1) Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program; and (2) Any other Federal statutes and regulations that are identified in the Compliance Supplement; and (c) Funds, property, and other assets are safeguarded against loss from unauthorized use or disposition. Cause: Due to turnover at the Organization and its fiscal service providers, there were inconsistencies in internal controls and processes to code expenditures under the proper SSVF grant in prior years, which had a carry-over effect into this fiscal year for multi-year grants. Effect: As a result of the matter identified in the condition paragraph, a significant deficiency in the Organization’s internal controls over compliance and a non-material non-compliance exists. Recommendation: We recommend the Organization continue to implement procedures to ensure it is recording expenditures in a consistent basis to provide adequate accountability of federal funds and properly support expenditure reports submitted to the funding source. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.