Finding Text
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 64.033, Department of Veteran Affairs, VA Supportive Services for Veteran Families Program Federal Award Identification Number and Year: 20-MI-221-SS, 20-MI-221-LT, 20-MI-221 Pass-through Entity – N/A Finding Type – Significant deficiency in internal control over compliance Repeat Finding – No Criteria – Per 2 CFR § 200.403(h), cost must be incurred during the approved budget period. Budget period means the time interval from the start date of a funded portion of an award to the end date of that funded portion during which recipients are authorized to expend the funds awarded, including any funds carried forward or other revisions pursuant to 200.308. A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or passthrough entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity. Condition – During our testing for Period of Performance, it was noted that 1 out of 60 disbursements did not comply with the Period of Performance requirements as specified in the Supportive Services for Veteran Families grant agreement. Funds were disbursed for expenses incurred after the expiration date as noted in the grant agreement. Identification of How Questioned Costs Were Computed – N/A Questioned Costs – None Cause/Effect – Management did not follow their internal controls to ensure that compliance with Period of Performance requirements were met. Recommendation – We recommend that the Organization establish procedures and internal, controls to ensure that all expenditures charged under the grant fall within the required Period of Performance requirements as specified in the grant agreement. View of Responsible Officials and Corrective Action Plan – The Agency agrees with the finding. We will provide training to program managers who are approving program expenditures to ensure proper allocation of costs to the appropriate grant cycles. We will also update our purchasing procedures to ensure that the proper allocation of costs is reviewed prior to supervisor's approval of the cost.