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-200-LT Award Period: October 1, 2022 – September 30, 2026 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award require compliance with the provisions of allowable costs. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: Internal controls over compliance for allowable costs were not in place to support that the Organization was requesting reimbursement for costs allowable by the Federal Agency with respect to indirect costs. Questioned costs: $26,275 Context: During our testing, it was noted that there was no formal layer of review over the draw-down requests prepared by the senior accountant before it was submitted to the awarding agency. Amounts drawn did not consistently agree to known upcoming or previously incurred expenditures, and the amount of indirect costs applied to the amount drawn was based on a rate of 11.1% instead of 10% which is the maximum de-minimis rate allowed to be elected by the Organization. Cause: These Organization began using this rate during the year ended June 30, 2025 and is still gaining an understanding of proper application. Effect: The amounts reimbursed by the Federal Agency may by unallowable and result in a refund to the Federal Agency. Repeat Finding: No. Recommendation: We recommend the Organization design controls to ensure the draw down requests and related support are formally reviewed and approved by the Finance Director before submitting the request to the awarding agency and that the support is retained. Views of responsible officials: While there is listing on the U.S Department of Veterans Affairs website that there is a limit for SSVF indirect cost rates at 10%, there is interpretation of the calculation of the 10% and the most recent SSVF Audit approved the current maximum de-minimis rate and it was not a finding.
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-200-LT Award Period: October 1, 2022 – September 30, 2026 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award require compliance with the provisions of cash management. The Organization should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure requests for reimbursement were supported by costs incurred and paid within the required timeline of the federal awarding agency. Questioned costs: None Context: During our testing, it was noted that there was no formal layer of review over the draw-down requests prepared by the senior accountant before it was submitted to the awarding agency. Amounts drawn did not consistently agree with known upcoming or previously incurred expenditures. Cause: A process of internal controls was not in place to ensure all draw-down requests were fully supported and approved. On January 27, 2025, the Office of Management and Budget (OMB), an office of the Executive Office of the President of the United States, ordered a pause to the disbursement of federal grants and loans, to take effect the following day. InteCare was notified by the VA that the system would be shut down, although awarded dollars were available for a draw down prior to the cut off. Effect: Amounts received in advance were not consistently spent within the number of days per the requirement. Interest may be owed to the federal awarding agency for funds received in advance and not spent within the guidelines required by the grantor. Repeat Finding: No. Recommendation: We recommend the Organization design controls to ensure the draw down requests and related support are formally reviewed and approved by the Finance Director before submitting the request to the awarding agency and that the support is retained. Views of responsible officials: There is no disagreement with the audit finding.
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-200-LT Award Period: October 1, 2022 – September 30, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: Grantees must have policies and procedures in place for exiting a Veteran who has been out of contact with their program. Grantees must ensure that every effort is made ("due diligence") to communicate in multiple ways (email, phone, letter, for example) with the Veteran prior to exiting them for this reason. Condition: Policy and procedure in place over veterans exiting the program were not consistently followed to ensure proper due diligence was achieved for Veterans InteCare had lost contact with. Questioned costs: None Context: During our testing, CLA noted 1 of 26 individuals included in population for eligibility testing were exited from the program and did not have support that proper due diligence was completed for Veterans they had lost contact with in accordance with their policy and procedures. Cause: Internal controls were not in place to ensure three attempts to contact were made before exiting a participant from the program for one individual tested. Effect: Veterans in need of the program could be improperly exited and needs of the eligible veteran are not met. Repeat Finding: No. Recommendation: We recommend that the Organization enhance the design and controls to ensure that an exit date cannot be assigned to a veteran unless proper due diligence is achieved in accordance with their policies and procedures. Views of responsible officials: There is no disagreement with the audit finding.
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-200-LT Award Period: October 1, 2022 – September 30, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter 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: The Organization did not have a comprehensive procurement policy in compliance with the federal regulations for a majority of the period under audit. 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 5 of the 5 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 and updates to the policy were not formally adopted until March 2025 as part of the prior year’s corrective action plan, resulting in a repeat finding for the period of the year the policy was not in place. In addition, the Organization was unable to locate documentation to support the performance of procedures to ensure vendors were not suspended or debarred. Effect: For both procurement and suspension and debarment, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: This finding is a repeat finding in the immediately prior year. Prior year finding number was 2024 – 003. Recommendation: We recommend the Organization utilizes the 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. The Organization had a finding related to the year ended June 30, 2024 that was not uncovered until February 2025 during the 2024 audit. While this was rectified in March 2025, it is considered a repeat finding for the year ended June 30, 2025 due to the timing of the InteCare, Inc. annual audits.
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-200-LT Award Period: October 1, 2022 – September 30, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: The Organization is required to submit quarterly, annual, and final SF-425 reports to the Federal Agency. Condition: The Organization did not have controls in place to prevent, detect, or correct errors in reporting. Questioned costs: None Context: During our testing, it was noted that there was no formal layer of review over the required reports prepared before it was submitted to the grantor. Cause: Internal controls were not in place to ensure reports are reviewed before submitted to the grantor. Effect: The auditor noted no instances of noncompliance with the provisions of reporting; however, the lack of internal controls over this compliance requirement provides an opportunity for noncompliance. Repeat Finding: No. Recommendation: We recommend that reports are prepared and reviewed by separate individuals and that the data gathered to prepare the report is saved with a final copy of it demonstrating the layers of approval in place. Views of responsible officials: There is no disagreement with the audit finding.