Audit 378969

U.S. Department of Veteran Affairs Federal Financial Assistance Listing #64.033 Award 15-UT-336 Supportive Services for Veteran Families Allowable Costs Significant Deficiency in Internal Control Over Compliance Criteria: The Organization should have procedures in place to ensure that items billed to the grant are supported by proper documentation. Condition: During the course of our engagement, it was noted that one of the 45 selected transactions was unsupported. The Road Home had implemented a process to accrue payroll within the billing period of the grant for payroll related to the SSVF grant, and that for a portion of the year, the accrued payroll was not reversed out, causing an over-billing of the portion of payroll related to these accruals. Cause: Lack of sufficient controls to ensure monthly reversals of month-end accruals. Effect: Billed payroll transactions related to the SSVF grant are misstated in the Organization’s Schedule of Federal Expenditures. Questioned Costs: $28,634. Note that the transaction selected for testing that was determined to be unsupported totaled $102.08. After discovering this error, we reviewed all effected costs for the period of error and concluded that the total error in the program was $28,634. Context: It was noted that the error was restricted to the monthly accruals. As such, we were able to identify explicitly which transactions were not reversed out and were subsequently billed to the grant. As such, no additional selections were made as the detail revealed $28,634 of transactions that were duplicate billed. Repeat Finding from Prior Year(s): No Recommendation: We recommend that the Organization implements a system to ensure monthly payroll amounts are not duplicate billed to the grantor. Views of Responsible Officials: Management agrees with the finding.