Finding Text
Federal Program – Supportive Housing for Veterans (Supportive Services for Veterans Families) (SSVF) Assistance Listing Number – 64.033 Significant Deficiency Criteria: The SSVF Program Guide Section VIII, Fiscal Administration, Subsection E. Documentation Required, states: “Grantees must use adequate financial management systems that follow generally accepted accounting principles (GAAP) and provide adequate fiscal control and account records including cost accounting records supported by documentation. Grantees must also maintain all back up documentation and invoices to support the costs paid with SSVF funds.” Condition/Context: During the OBO review, OBO found the Organization was unable to provide a general ledger detail that separated administrative costs from general costs. Due to the timing of the 2023 audit, this was not able to be corrected during 2024. Cause: Because the Organization’s SSVF administrative costs are allocated payroll expenses, management was unaware they needed to segregate the administrative costs in the general ledger. Effect: The Organization’s failure to provide a general ledger that separates administrative and general expenses increases the risk of inaccurate financial results being provided at closeout or unauthorized and ineligible expenses being charged to the award, which may result in subsequent funding shortages for other qualified expenses. Questioned Costs: None Identification as a repeat finding: This is a repeat finding. Recommendation: We recommend the Organization update the coding in the financial system to include different classes under the administrative code. Views of responsible officials and planned corrective actions: Management’s response is reported in “Corrective Action Plan” at the end of this report.