Audit 354255

Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families Criteria Documentation is a necessary part of an effective internal control system. Documentation is required to demonstrate the design, implementation, and operating effectiveness of an entity’s internal control system. Condition During allowable cost testing for Supportive Services for Veteran Families (SSVF) Program 2 out of 60 samples tested did not have supporting documentation. Cause The Organization did not have adequate controls surrounding document retention. Effect There is a risk of non-existent expenses being allocated to the program. Recommendation 1. Implement expense controls, require supporting documentation be submitted for each expense along with review and approval. 2. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families Criteria Transaction control activities are actions built directly into operational processes to support the entity in achieving its objectives and addressing related risks. “Transactions” tends to be associated with financial processes (e.g., payables transactions). Management may design a variety of transaction control activities for operational processes, which may include verifications, reconciliations, authorizations and approvals, physical control activities, and supervisory control activities. Condition During cash management testing for the Supportive Services for Veteran Families (SSVF) Program, none of the samples had an authorized signature, approval confirmation or payment received confirmation Cause This noncompliance may have resulted from inadequate controls to review and approve draw submissions and lack of staff training on cash management. Effect There is a risk of misuse of program funding due to lack of documentation surrounding cash received. Recommendation 1. Implement pre-submission controls: Require all draw requests to have written review and approval. 2. Documentation Requirements: Require written confirmation when payments are received from both the program and the bank. 3. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Finding No. 2024-003 Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families Criteria 2 CFR § 200.308, 200.309 and 200.403(h)) A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition During period of performance testing for the Supportive Services for Veteran Families (SSVF) Program, eight instances were identified where expenses were incurred outside of the allowable timeframe. Cause This noncompliance may have resulted from inadequate controls to validate expense dates during approval and/or lack of staff training on period-of-performance requirements Effect There is an increased audit risk for federal fund misuse and a potential for unallowable expense reimbursement repayment. Recommendation 1. Implement pre-approval controls: Require date validation for all expenses against the award’s period of performance. 2. Conduct training: Educate staff on 2 CFR requirements and period-of-performance limitations. 3. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Assistance Listing Program Title and Number: Continuum of Care Program 14.267 Criteria 2 CFR § 200.308, 200.309 and 200.403(h)) A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition During period of performance testing for the Continuum of Care Program two instances were identified where expenses were incurred outside of the allowable timeframe. The sample size was extended to address this deficiency, and no additional exceptions were noted. Cause This noncompliance may have resulted from inadequate controls to validate expense dates during approval and/or lack of staff training on period-of-performance requirements Effect There is an increased audit risk for federal fund misuse and a potential for unallowable expense reimbursement repayment. Recommendation 1. Implement pre-approval controls: Require date validation for all expenses against the award’s period of performance. 2. Conduct training: Educate staff on 2 CFR requirements and period-of-performance limitations. 3. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families Criteria Documentation is a necessary part of an effective internal control system. Documentation is required to demonstrate the design, implementation, and operating effectiveness of an entity’s internal control system. Condition During allowable cost testing for Supportive Services for Veteran Families (SSVF) Program 2 out of 60 samples tested did not have supporting documentation. Cause The Organization did not have adequate controls surrounding document retention. Effect There is a risk of non-existent expenses being allocated to the program. Recommendation 1. Implement expense controls, require supporting documentation be submitted for each expense along with review and approval. 2. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families Criteria Transaction control activities are actions built directly into operational processes to support the entity in achieving its objectives and addressing related risks. “Transactions” tends to be associated with financial processes (e.g., payables transactions). Management may design a variety of transaction control activities for operational processes, which may include verifications, reconciliations, authorizations and approvals, physical control activities, and supervisory control activities. Condition During cash management testing for the Supportive Services for Veteran Families (SSVF) Program, none of the samples had an authorized signature, approval confirmation or payment received confirmation Cause This noncompliance may have resulted from inadequate controls to review and approve draw submissions and lack of staff training on cash management. Effect There is a risk of misuse of program funding due to lack of documentation surrounding cash received. Recommendation 1. Implement pre-submission controls: Require all draw requests to have written review and approval. 2. Documentation Requirements: Require written confirmation when payments are received from both the program and the bank. 3. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Finding No. 2024-003 Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families Criteria 2 CFR § 200.308, 200.309 and 200.403(h)) A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition During period of performance testing for the Supportive Services for Veteran Families (SSVF) Program, eight instances were identified where expenses were incurred outside of the allowable timeframe. Cause This noncompliance may have resulted from inadequate controls to validate expense dates during approval and/or lack of staff training on period-of-performance requirements Effect There is an increased audit risk for federal fund misuse and a potential for unallowable expense reimbursement repayment. Recommendation 1. Implement pre-approval controls: Require date validation for all expenses against the award’s period of performance. 2. Conduct training: Educate staff on 2 CFR requirements and period-of-performance limitations. 3. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.

Assistance Listing Program Title and Number: Continuum of Care Program 14.267 Criteria 2 CFR § 200.308, 200.309 and 200.403(h)) A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition During period of performance testing for the Continuum of Care Program two instances were identified where expenses were incurred outside of the allowable timeframe. The sample size was extended to address this deficiency, and no additional exceptions were noted. Cause This noncompliance may have resulted from inadequate controls to validate expense dates during approval and/or lack of staff training on period-of-performance requirements Effect There is an increased audit risk for federal fund misuse and a potential for unallowable expense reimbursement repayment. Recommendation 1. Implement pre-approval controls: Require date validation for all expenses against the award’s period of performance. 2. Conduct training: Educate staff on 2 CFR requirements and period-of-performance limitations. 3. Perform periodic reviews: Monitor compliance quarterly to detect outliers. Management’s Response Management agrees with this finding, see the Corrective Action Plan.