Finding Text
Refer to Section II for findings 2025-001 and 2025-002. Information on the Federal Program: Federal Agency: United States Department of Veteran Affairs Program Name: VA Supportive Services for Veteran Families Program (SSVF) CFDA: 64.033 Federal Award Identification Number: 14-MA-209 Federal Award Year: 2025 Specific Requirement: In accordance with Title 2 U.S. Code of Federal Regulations Part 200, Subpart D, Section 200.303a, the Organization is required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition Found: We noted there was limited or no segregation of duties for the majority of fiscal year ended June 30, 2025 in several areas during our audit. See Section II for findings 2025-001 and 2025-002. Context: We noted these conditions while obtaining an understanding of internal control for the respective transaction cycles listed in the findings. Questioned Costs: None noted Identification as a Repeat Finding, if Applicable: A repeat finding; See finding 2024-005, 2023-005, 2022-005, 2021-005, 2020-006, and 2019-007. Recommendation: We recommend the Organization implement a system of internal controls that would improve the segregation of duties related to payroll, cash receipts, and cash disbursements. This system of controls would include documented review of each significant transaction cycle. Specifically, we recommend the following: Payroll Processing • We recommend reviewing all files to verify they contain appropriate and current documents. • We recommend developing a termination process as part of the policy manual to ensure terminated employees have access rights terminated timely upon departure. Cash Receipts and Tenant Accounts Receivable • We recommend that the Organization segregate the various aspects of the cash receipts process between the employees to mitigate conflicting responsibilities during the transaction cycle. We recommend that the individual that opens the mail create a log of checks received which is retained by this individual and reviewed against the actual deposit made to verify completeness. • We recommend that management perform monthly reconciliations and revenues over the accounts receivable balances. We also recommend management develop a procedure for following up on amounts past due, and refunds of security deposits. • We recommend the Organization implement a process of creating and obtaining tenant agreements with terms and conditions. Those tenant agreements should be signed by the Organization and the tenant, retained and updated at the term of any agreement. Cash Disbursements • We recommend the Organization develop a formal procedure surrounding the cash disbursement process which includes an appropriate level of review of all invoices, including purchases made with the credit cards and employee reimbursements that provide a clear description of the grant and business purpose of the expense. • We also recommend that the Organization adopt a formal policy surrounding employee reimbursements which includes requiring the use of a reimbursement request form which is reviewed and that itemized receipts for purchases be required. We recommend a formal documented review be performed on a monthly basis over journal entries and supporting documentation for each journal entry be retained. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan attached.