Audit 398344

Refer to Section II for findings 2025-001 and 2025-002. Information on the Federal Program: Federal Agency: United States Department of Veteran Affairs Program Name: VA Supportive Services for Veteran Families Program (SSVF) CFDA: 64.033 Federal Award Identification Number: 14-MA-209 Federal Award Year: 2025 Specific Requirement: In accordance with Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.303a, the Organization is required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition Found: We noted there was limited or no segregation of duties for the majority of fiscal year ended June 30, 2025 in several areas during our audit. See Section II for findings 2025-001 and 2025-002. Context: We noted these conditions while obtaining an understanding of internal control for the respective transaction cycles listed in the findings. Questioned Costs: None noted Identification as a Repeat Finding, if Applicable: A repeat finding; See finding 2024-005, 2023-005, 2022-005, 2021-005, 2020-006, and 2019-007. Recommendation: We recommend the Organization implement a system of internal controls that would improve the segregation of duties related to payroll, cash receipts, and cash disbursements. This system of controls would include documented review of each significant transaction cycle. Specifically, we recommend the following: Payroll Processing • We recommend reviewing all files to verify they contain appropriate and current documents. • We recommend developing a termination process as part of the policy manual to ensure terminated employees have access rights terminated timely upon departure. Cash Receipts and Tenant Accounts Receivable • We recommend that the Organization segregate the various aspects of the cash receipts process between the employees to mitigate conflicting responsibilities during the transaction cycle. We recommend that the individual that opens the mail create a log of checks received which is retained by this individual and reviewed against the actual deposit made to verify completeness. • We recommend that management perform monthly reconciliations and revenues over the accounts receivable balances. We also recommend management develop a procedure for following up on amounts past due, and refunds of security deposits. • We recommend the Organization implement a process of creating and obtaining tenant agreements with terms and conditions. Those tenant agreements should be signed by the Organization and the tenant, retained and updated at the term of any agreement. Cash Disbursements • We recommend the Organization develop a formal procedure surrounding the cash disbursement process which includes an appropriate level of review of all invoices, including purchases made with the credit cards and employee reimbursements that provide a clear description of the grant and business purpose of the expense. • We also recommend that the Organization adopt a formal policy surrounding employee reimbursements which includes requiring the use of a reimbursement request form which is reviewed and that itemized receipts for purchases be required. We recommend a formal documented review be performed on a monthly basis over journal entries and supporting documentation for each journal entry be retained. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan attached.

Information on the Federal Program: Federal Agency: United States Department of Veteran Affairs Program Name: SSVF CFDA: 64.033 Federal Award Identification Number: 14-MA-209 Federal Award Year: 2025 Specific Requirement: Required by 2 CFR, Part 200 for federally funded programs, when an institution enters into a covered transaction with an entity or individual, an institution must verify that the vendor is not suspended or debarred or otherwise excluded from participating in federal programs. Generally, a covered transaction is a transaction expected to equal or exceed $25,000 and be funded with federal dollars. This verification may be accomplished by checking the System for Award Management (SAM), formerly the Excluded Parties List System, maintained by the General Services Administration, collecting a certification from the vendor, or by adding a clause or condition to the covered transaction. Condition Found: The Organization did not have an internal control procedure designed to identify vendors and employees meeting the covered transaction threshold and crosschecking those vendors and employees against SAM. Context: We selected a nonstatistical sample of 40 vendors and 8 employees funded by SSVF. None of the vendors or employees tested were identified on SAM. Questioned Costs: None Cause and Effect: The Organization was aware of the requirement to verify vendors and employees against the SAM; however, a process was not implemented to verify vendors or employees. Without performing the required check of vendors and employees against SAM, the Organization could pay a vendor or an employee with federal funds inappropriately. Identification as a Repeat Finding, if Applicable: A repeat finding; See finding 2024-006, 2023-006, 2022-006, 2021-006, 2020-007, and 2019-008. Recommendation: We recommend the Organization implement a process to compare all vendors and employees meeting the covered transaction threshold funded by a federal program to SAM on a regular basis and when a new vendor or employee is entered into the accounting system. The Organization should maintain documentation that the comparison has been performed. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan attached.

Information on the Federal Program: Federal Agency: United States Department of Veteran Affairs Program Name: SSVF CFDA: 64.033 Federal Award Identification Number: 14-MA-209 Federal Award Year: 2025 Specific Requirement: In accordance with the SSVF Program Guide dated December 2020, an organization must maintain adequate eligibility documentation. Grantees must implement policies and procedures that ensure appropriate documentation is obtained and is included in each participant’s file. Condition Found: During our testing of participant eligibility, we noted the following: 1. Documented approval by either the Program Coordinator or the Case Manager was missing for documentation related to 15 participant files out of the 25 selected for testing. 2. 90-day eligibility recertifications were not performed or not documented appropriately for 16 participants out of the 25 requiring recertification. Context: We sampled 25 participants out of 74 total participants, using a nonstatistical sample, who were provided support from the Organization’s SSVF program. Questioned Costs: N/A Cause and Effect: The Organization is aware of the eligibility requirements under the SSVF program and the importance of retaining all of the required documentation set forth in the SSVF Program Guide. Under the terms of the SSVF grant, grantees with insufficient case file documentation may be found out of compliance with SSVF Program regulations. The Organization also is at risk for providing services to ineligible participants. Identification as a Repeat Finding, if Applicable: A repeat finding; See finding 2024-007, 2023-007, 2022-007, 2021-008, 2020-010, and 2019-011. Recommendation: We recommend the Organization implement a system of controls that would properly document the eligibility requirements of participants under the SSVF program and compliance with the eligibility requirements set forth under the SSVF program. Participants’ documented eligibility should be properly reviewed, evidenced by appropriate supervisor signatures. All eligibility forms, recertification forms, and other required forms should be maintained in a file for each participant. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan attached.