Audit 350867

2024 – 001 Financial Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The board and management share the ultimate responsibility for the Organization's internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Organization was unable to provide documentation that the performance of internal control reviews over certain reconciliations and journal entries were completed. Criteria or specific requirement: In an ideal control setting, the Organization would have a comprehensive control procedure to ensure that the financial statements, including disclosures are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of applicable U.S. GAAP. Effect: Lack of supporting documentation for the year end closing process and lack of rigorous account analysis throughout the year could result in management’s reliance on inaccurate information for decision making, missing of reporting deadlines to funders, and misstatements, fraud, or errors occurring and not being detected and corrected on a timely basis. Cause: Staff transitions and significant changes made to the financial closing reporting process contributed to the gaps in the documentation of the performance of certain controls during the year. Repeat Finding: No. Recommendation: We recommend that the Organization review the internal controls that are in place and performed throughout the year to enable an efficient year end closing process, including obtaining and retaining documentation of the performance of internal reviews over reconciliations and journal entries. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

2024 – 001 Financial Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The board and management share the ultimate responsibility for the Organization's internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Organization was unable to provide documentation that the performance of internal control reviews over certain reconciliations and journal entries were completed. Criteria or specific requirement: In an ideal control setting, the Organization would have a comprehensive control procedure to ensure that the financial statements, including disclosures are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of applicable U.S. GAAP. Effect: Lack of supporting documentation for the year end closing process and lack of rigorous account analysis throughout the year could result in management’s reliance on inaccurate information for decision making, missing of reporting deadlines to funders, and misstatements, fraud, or errors occurring and not being detected and corrected on a timely basis. Cause: Staff transitions and significant changes made to the financial closing reporting process contributed to the gaps in the documentation of the performance of certain controls during the year. Repeat Finding: No. Recommendation: We recommend that the Organization review the internal controls that are in place and performed throughout the year to enable an efficient year end closing process, including obtaining and retaining documentation of the performance of internal reviews over reconciliations and journal entries. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

2024 – 001 Financial Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The board and management share the ultimate responsibility for the Organization's internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Organization was unable to provide documentation that the performance of internal control reviews over certain reconciliations and journal entries were completed. Criteria or specific requirement: In an ideal control setting, the Organization would have a comprehensive control procedure to ensure that the financial statements, including disclosures are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of applicable U.S. GAAP. Effect: Lack of supporting documentation for the year end closing process and lack of rigorous account analysis throughout the year could result in management’s reliance on inaccurate information for decision making, missing of reporting deadlines to funders, and misstatements, fraud, or errors occurring and not being detected and corrected on a timely basis. Cause: Staff transitions and significant changes made to the financial closing reporting process contributed to the gaps in the documentation of the performance of certain controls during the year. Repeat Finding: No. Recommendation: We recommend that the Organization review the internal controls that are in place and performed throughout the year to enable an efficient year end closing process, including obtaining and retaining documentation of the performance of internal reviews over reconciliations and journal entries. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

2024 – 002 Allowable Costs Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization’s control process for payroll disbursements includes approval of employee timesheets by supervisors before disbursements are allocated to the program. Condition: Out of the forty (40) selections, four (4) pay dates for the same employee failed to comply with approval process as the employee approved their own timesheets. Questioned costs: None Context: The Organization’s control process resulted in inconsistent approvals in regard to payroll costs allocated to the program. Cause: This was an oversight over the process during a short period of time during management transition was not followed for one employee. Effect: A deviation from the existing internal control process occurred on four (4) payroll dates for one (1) employee. This impacted the allocation of the employee’s salary to the grant expenditures. Repeat Finding: No. Recommendation: We recommend the control process be reviewed and enhanced to ensure consistency in obtaining proper approvals. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 002 Allowable Costs Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization’s control process for payroll disbursements includes approval of employee timesheets by supervisors before disbursements are allocated to the program. Condition: Out of the forty (40) selections, four (4) pay dates for the same employee failed to comply with approval process as the employee approved their own timesheets. Questioned costs: None Context: The Organization’s control process resulted in inconsistent approvals in regard to payroll costs allocated to the program. Cause: This was an oversight over the process during a short period of time during management transition was not followed for one employee. Effect: A deviation from the existing internal control process occurred on four (4) payroll dates for one (1) employee. This impacted the allocation of the employee’s salary to the grant expenditures. Repeat Finding: No. Recommendation: We recommend the control process be reviewed and enhanced to ensure consistency in obtaining proper approvals. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 002 Allowable Costs Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization’s control process for payroll disbursements includes approval of employee timesheets by supervisors before disbursements are allocated to the program. Condition: Out of the forty (40) selections, four (4) pay dates for the same employee failed to comply with approval process as the employee approved their own timesheets. Questioned costs: None Context: The Organization’s control process resulted in inconsistent approvals in regard to payroll costs allocated to the program. Cause: This was an oversight over the process during a short period of time during management transition was not followed for one employee. Effect: A deviation from the existing internal control process occurred on four (4) payroll dates for one (1) employee. This impacted the allocation of the employee’s salary to the grant expenditures. Repeat Finding: No. Recommendation: We recommend the control process be reviewed and enhanced to ensure consistency in obtaining proper approvals. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 003 Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have a comprehensive procurement policy in compliance with the federal regulations. The Organization also did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract. Questioned costs: None Context: During our testing, it was noted that the Organization did not maintain documentation regarding its procurement transactions and evaluation of those transactions against a comprehensive procurement policy. In addition, the Organization did not maintain documentation illustrating that it had reviewed vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. This exception was noted for two (2) of the two (2) items tested, however, we were able to verify that the selected vendors were not suspended or debarred. Cause: The Organization did not establish a comprehensive procurement policy. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.Effect: Because of the lack of procurement policy, the auditor was not able to validate compliance with the federal procurement policies. However, the auditor noted no instances of noncompliance with the suspension, and debarment provisions. For both, procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the Organization develops a comprehensive procurement policy that complies with the federal regulations and that the Organization enhances controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 003 Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have a comprehensive procurement policy in compliance with the federal regulations. The Organization also did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract. Questioned costs: None Context: During our testing, it was noted that the Organization did not maintain documentation regarding its procurement transactions and evaluation of those transactions against a comprehensive procurement policy. In addition, the Organization did not maintain documentation illustrating that it had reviewed vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. This exception was noted for two (2) of the two (2) items tested, however, we were able to verify that the selected vendors were not suspended or debarred. Cause: The Organization did not establish a comprehensive procurement policy. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.Effect: Because of the lack of procurement policy, the auditor was not able to validate compliance with the federal procurement policies. However, the auditor noted no instances of noncompliance with the suspension, and debarment provisions. For both, procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the Organization develops a comprehensive procurement policy that complies with the federal regulations and that the Organization enhances controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 003 Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have a comprehensive procurement policy in compliance with the federal regulations. The Organization also did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract. Questioned costs: None Context: During our testing, it was noted that the Organization did not maintain documentation regarding its procurement transactions and evaluation of those transactions against a comprehensive procurement policy. In addition, the Organization did not maintain documentation illustrating that it had reviewed vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. This exception was noted for two (2) of the two (2) items tested, however, we were able to verify that the selected vendors were not suspended or debarred. Cause: The Organization did not establish a comprehensive procurement policy. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.Effect: Because of the lack of procurement policy, the auditor was not able to validate compliance with the federal procurement policies. However, the auditor noted no instances of noncompliance with the suspension, and debarment provisions. For both, procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the Organization develops a comprehensive procurement policy that complies with the federal regulations and that the Organization enhances controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 001 Financial Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The board and management share the ultimate responsibility for the Organization's internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Organization was unable to provide documentation that the performance of internal control reviews over certain reconciliations and journal entries were completed. Criteria or specific requirement: In an ideal control setting, the Organization would have a comprehensive control procedure to ensure that the financial statements, including disclosures are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of applicable U.S. GAAP. Effect: Lack of supporting documentation for the year end closing process and lack of rigorous account analysis throughout the year could result in management’s reliance on inaccurate information for decision making, missing of reporting deadlines to funders, and misstatements, fraud, or errors occurring and not being detected and corrected on a timely basis. Cause: Staff transitions and significant changes made to the financial closing reporting process contributed to the gaps in the documentation of the performance of certain controls during the year. Repeat Finding: No. Recommendation: We recommend that the Organization review the internal controls that are in place and performed throughout the year to enable an efficient year end closing process, including obtaining and retaining documentation of the performance of internal reviews over reconciliations and journal entries. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

2024 – 001 Financial Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The board and management share the ultimate responsibility for the Organization's internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Organization was unable to provide documentation that the performance of internal control reviews over certain reconciliations and journal entries were completed. Criteria or specific requirement: In an ideal control setting, the Organization would have a comprehensive control procedure to ensure that the financial statements, including disclosures are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of applicable U.S. GAAP. Effect: Lack of supporting documentation for the year end closing process and lack of rigorous account analysis throughout the year could result in management’s reliance on inaccurate information for decision making, missing of reporting deadlines to funders, and misstatements, fraud, or errors occurring and not being detected and corrected on a timely basis. Cause: Staff transitions and significant changes made to the financial closing reporting process contributed to the gaps in the documentation of the performance of certain controls during the year. Repeat Finding: No. Recommendation: We recommend that the Organization review the internal controls that are in place and performed throughout the year to enable an efficient year end closing process, including obtaining and retaining documentation of the performance of internal reviews over reconciliations and journal entries. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

2024 – 001 Financial Reporting Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: The board and management share the ultimate responsibility for the Organization's internal control system. While it is acceptable to outsource various accounting functions, the responsibility for internal control cannot be outsourced. The Organization was unable to provide documentation that the performance of internal control reviews over certain reconciliations and journal entries were completed. Criteria or specific requirement: In an ideal control setting, the Organization would have a comprehensive control procedure to ensure that the financial statements, including disclosures are complete and accurate. Such review procedures should be performed by an individual possessing a thorough understanding of applicable U.S. GAAP. Effect: Lack of supporting documentation for the year end closing process and lack of rigorous account analysis throughout the year could result in management’s reliance on inaccurate information for decision making, missing of reporting deadlines to funders, and misstatements, fraud, or errors occurring and not being detected and corrected on a timely basis. Cause: Staff transitions and significant changes made to the financial closing reporting process contributed to the gaps in the documentation of the performance of certain controls during the year. Repeat Finding: No. Recommendation: We recommend that the Organization review the internal controls that are in place and performed throughout the year to enable an efficient year end closing process, including obtaining and retaining documentation of the performance of internal reviews over reconciliations and journal entries. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.

2024 – 002 Allowable Costs Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization’s control process for payroll disbursements includes approval of employee timesheets by supervisors before disbursements are allocated to the program. Condition: Out of the forty (40) selections, four (4) pay dates for the same employee failed to comply with approval process as the employee approved their own timesheets. Questioned costs: None Context: The Organization’s control process resulted in inconsistent approvals in regard to payroll costs allocated to the program. Cause: This was an oversight over the process during a short period of time during management transition was not followed for one employee. Effect: A deviation from the existing internal control process occurred on four (4) payroll dates for one (1) employee. This impacted the allocation of the employee’s salary to the grant expenditures. Repeat Finding: No. Recommendation: We recommend the control process be reviewed and enhanced to ensure consistency in obtaining proper approvals. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 002 Allowable Costs Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization’s control process for payroll disbursements includes approval of employee timesheets by supervisors before disbursements are allocated to the program. Condition: Out of the forty (40) selections, four (4) pay dates for the same employee failed to comply with approval process as the employee approved their own timesheets. Questioned costs: None Context: The Organization’s control process resulted in inconsistent approvals in regard to payroll costs allocated to the program. Cause: This was an oversight over the process during a short period of time during management transition was not followed for one employee. Effect: A deviation from the existing internal control process occurred on four (4) payroll dates for one (1) employee. This impacted the allocation of the employee’s salary to the grant expenditures. Repeat Finding: No. Recommendation: We recommend the control process be reviewed and enhanced to ensure consistency in obtaining proper approvals. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 002 Allowable Costs Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Organization’s control process for payroll disbursements includes approval of employee timesheets by supervisors before disbursements are allocated to the program. Condition: Out of the forty (40) selections, four (4) pay dates for the same employee failed to comply with approval process as the employee approved their own timesheets. Questioned costs: None Context: The Organization’s control process resulted in inconsistent approvals in regard to payroll costs allocated to the program. Cause: This was an oversight over the process during a short period of time during management transition was not followed for one employee. Effect: A deviation from the existing internal control process occurred on four (4) payroll dates for one (1) employee. This impacted the allocation of the employee’s salary to the grant expenditures. Repeat Finding: No. Recommendation: We recommend the control process be reviewed and enhanced to ensure consistency in obtaining proper approvals. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 003 Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have a comprehensive procurement policy in compliance with the federal regulations. The Organization also did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract. Questioned costs: None Context: During our testing, it was noted that the Organization did not maintain documentation regarding its procurement transactions and evaluation of those transactions against a comprehensive procurement policy. In addition, the Organization did not maintain documentation illustrating that it had reviewed vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. This exception was noted for two (2) of the two (2) items tested, however, we were able to verify that the selected vendors were not suspended or debarred. Cause: The Organization did not establish a comprehensive procurement policy. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.Effect: Because of the lack of procurement policy, the auditor was not able to validate compliance with the federal procurement policies. However, the auditor noted no instances of noncompliance with the suspension, and debarment provisions. For both, procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the Organization develops a comprehensive procurement policy that complies with the federal regulations and that the Organization enhances controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 003 Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have a comprehensive procurement policy in compliance with the federal regulations. The Organization also did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract. Questioned costs: None Context: During our testing, it was noted that the Organization did not maintain documentation regarding its procurement transactions and evaluation of those transactions against a comprehensive procurement policy. In addition, the Organization did not maintain documentation illustrating that it had reviewed vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. This exception was noted for two (2) of the two (2) items tested, however, we were able to verify that the selected vendors were not suspended or debarred. Cause: The Organization did not establish a comprehensive procurement policy. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.Effect: Because of the lack of procurement policy, the auditor was not able to validate compliance with the federal procurement policies. However, the auditor noted no instances of noncompliance with the suspension, and debarment provisions. For both, procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the Organization develops a comprehensive procurement policy that complies with the federal regulations and that the Organization enhances controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 003 Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Veteran Affairs Federal Program Name: Supporting Services for Veteran Families Program Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 14-IN-200, 14-IN-200SS, 14-IN-200-LT Award Period: October 1, 2022 – September 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have a comprehensive procurement policy in compliance with the federal regulations. The Organization also did not have documentation to support that internal controls were performed to ensure vendors were not suspended or debarred prior to entering into the contract. Questioned costs: None Context: During our testing, it was noted that the Organization did not maintain documentation regarding its procurement transactions and evaluation of those transactions against a comprehensive procurement policy. In addition, the Organization did not maintain documentation illustrating that it had reviewed vendors prior to entering into a contract with a vendor to ensure the vendor was not on the suspended or debarred vendor list maintained by the General Services Administration. This exception was noted for two (2) of the two (2) items tested, however, we were able to verify that the selected vendors were not suspended or debarred. Cause: The Organization did not establish a comprehensive procurement policy. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred.Effect: Because of the lack of procurement policy, the auditor was not able to validate compliance with the federal procurement policies. However, the auditor noted no instances of noncompliance with the suspension, and debarment provisions. For both, procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend the Organization develops a comprehensive procurement policy that complies with the federal regulations and that the Organization enhances controls to ensure an adequate process is in place to review potential vendors to determine they are not suspended or debarred and to ensure documentation to support this is maintained. Views of responsible officials: There is no disagreement with the audit finding.