Finding Text
Federal Agency: U.S. Department of Veterans Affairs
Federal Program Name: VA Supportive Services for Veteran Families (SSVF)
Assistance Listing Number: 64.033
Federal Award Identification Number: 20-ZZ-026
Award Period: 10/01/2023 – 09/30/2024
Type of Finding: Material Weakness in Internal Control over Compliance
Compliance Requirement: Allowable Costs
Criteria or Specific Requirement: Payment of SSVF grant funds up to the amount specified in the SSVF
grant agreement will be made only for appropriately documented eligible expenses that are allowable,
allocable, and reasonable costs of operating a program under the Supportive Services grant. Eligible
expenses must be in accordance with the applicable Federal Cost Principles set forth in OMB Circular A-
122, Cost Principles for Non-Profit Organizations, codified at 2 CFR Part 235, 2 CFR 200 Subpart E Cost
Principles. Additionally, expenses must be eligible per the grantee’s approved SSVF budget.
Condition/Context: During the course of the audit and review of the SSVF monitoring report there were
identified expenses that related to travel and development of an application. There is insufficient
documentation to verify the allowability, reasonableness, and allocability of these expenses. Additionally,
there was no clear review process for administrative expenses to ensure that they were reasonable and
allowable under federal guidelines.
Cause: The internal controls related to the monitoring and approval of administrative expenses are
insufficient, leading to potential non-compliance with federal requirements. The organization has not
implemented a systematic review and approval process for these expenses, leading to inadequate
documentation and non-compliance with federal guidelines.
Effect: The lack of proper oversight and documentation of administrative expenses resulted in noncompliant/
unallowable charges to the federal program, increasing the risk of questioned costs or disallowed
expenditures. The failure to allocate and support administrative costs properly also hinder the program’s
ability to demonstrate that funds were used effectively and in accordance with federal regulations.
Additionally, disallowed costs identified during the review will be paid back with interest.
Recommendation: We recommend implementing stronger controls and a formal periodic review process
for administrative expenses, ensuring that all expenditures are properly documented, allocated, and
compliant with federal regulations.
Repeat Finding: This is not a repeat finding.
Questioned Costs: $128,262Explanation of Disagreement with Audit Findings:
There is no disagreement with the audit finding.
Actions Planned in Response to Finding:
In response to the finding, the organization will implement a formal review and approval process for
administrative expenses, enhance documentation practices, conduct regular internal audits and train staff
on federal cost principles. New management acknowledges that intentional collusion and failure to follow
procedures contributed to the issue; corrective action has been taken and safeguards are being put in place
to ensure accountability and prevent recurrence.
Official Responsible for Ensuring CAP:
The interim ED will be responsible for overseeing the implementation of corrective actions.
Planned Completion Date for CAP:
The planned completion date is June 06, 2024.
Plan to Monitor Completion of CAP:
The board will monitor the completion of the CAP through meeting at least quarterly with Director,
Finance and Compliance personnel.