Finding Text
Assistance Listing Program Title and Number: 64.033 Supportive Services for Veteran Families
Criteria
Transaction control activities are actions built directly into operational processes to support the entity in
achieving its objectives and addressing related risks. “Transactions” tends to be associated with financial
processes (e.g., payables transactions). Management may design a variety of transaction control activities
for operational processes, which may include verifications, reconciliations, authorizations and approvals,
physical control activities, and supervisory control activities.
Condition
During cash management testing for the Supportive Services for Veteran Families (SSVF) Program, none
of the samples had an authorized signature, approval confirmation or payment received confirmation
Cause
This noncompliance may have resulted from inadequate controls to review and approve draw submissions
and lack of staff training on cash management.
Effect
There is a risk of misuse of program funding due to lack of documentation surrounding cash received.
Recommendation
1. Implement pre-submission controls: Require all draw requests to have written review and
approval.
2. Documentation Requirements: Require written confirmation when payments are received from
both the program and the bank.
3. Perform periodic reviews: Monitor compliance quarterly to detect outliers.
Management’s Response
Management agrees with this finding, see the Corrective Action Plan.