Finding 1146476 (2024-002)

Federal Agency: U.S. Department of Veterans Affairs Federal Program Name: Supportive Services for Veteran Families Assistance Listing Number: 64.033 Federal Award Identification Number and Year: 12-NC-050 Award Period: September 30, 2022 through September 30, 2024 - Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The Corporation is required to maintain adequate documentation to support compliance requirements for federal funds. Properly completed forms and appropriately reviewed documentation are essential to ensure compliance requirements of the program. Condition: The Corporation failed to maintain adequate documentation to substantiate compliance requirements for federal funds. Specifically, forms were not properly completed, documentation was not appropriately reviewed, and in certain instances, documentation was unavailable for review. Questioned costs: None Context: During our audit, the Corporation was unable to provide adequate documentation to substantiate compliance requirements for federal funds. Specifically, forms were not properly completed, documentation was not appropriately reviewed and maintained, and in certain instances, documentation was unavailable for review. Cause: The Corporation did not have sufficient controls in place to ensure that all documentation related to federal funds was properly completed, reviewed, and maintained. Effect: Noncompliance with the federal requirements around the management of federal funds. Recommendation: We recommend that the Corporation establish and enforce a standardized process for completing and reviewing forms, provide training to staff on the importance of maintaining proper documentation and the procedures for completing and reviewing compliance requirements, and implement periodic internal audits to ensure compliance with documentation requirements and to identify any areas needing improvement Views of responsible officials: Management agrees with the above finding. During 2024, Passage Home experienced unprecedented change, including extensive staff turnover and extended vacancies in key positions. Of note, the entire leadership team transitioned out, the Supportive Services for Veteran Families Program Manager (SSVF) left, and 4 new SSVF program team members were onboarded within the year. Additionally, the finance department migrated to a new accounting system that ultimately proved to be unsatisfactory for the organization’s needs. Management appreciates and agrees with the auditors’ recommendations and has implemented and/or initiated the indicated operational adjustments.