Finding Text
Independent Review and Approval of Disbursements and Manual Journal Entries (Allowable Costs/Costs Principles). Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Federal Program. Homeless Providers Grant; U.S. Department of Veteran Affairs; ALN 64.024; Award Number GINM268-1413-655-PD-21. Criteria. The Uniform Guidance requires the Organization to establish internal controls over disbursements and journal entries related to the compliance requirements applicable to allowable costs/cost provisions. The Organization's policies require an independent review of expenditures and journal entries. Condition. Evidence of an independent review was not documented for 1 of 40 disbursements and all 7 journal entries selected for testing. Cause. This condition appears to be the result of the Organization not adhering to established internal control policies and procedures. Effect. As a result of this condition, the Organization is exposed to increased risk that program funds could be used for unallowable purposes. Questioned Costs. No costs were questioned as a result of this finding. Recommendation. We recommend the Organization follow its internal control policies and procedures that require independent review of all disbursement transactions and journal entries. View of Responsible Officials. Management Concurs