Finding Text
Finding 2025-009: Period of Performance (Material Weakness) Federal Program: VA Homeless Providers Grant and Per Diem Program ("VA PDM") Assistance Listing Number: 64.024 Criteria: Per 2 CFR Part 200 program requirements, costs charged to a federal award must be incurred within the award’s approved period of performance and supported by adequate documentation evidencing (a) the timing of the underlying goods/services received and (b) appropriate review/approval of the transactions in accordance with the Organization’s internal controls and the award terms. Condition /Context: For 11 of 60 other than personnel services sampled items, there was a lack of supporting information or the supporting documentation indicated the underlying expense was incurred prior to the period of performance. For 31 of 60 payroll transactions sampled, there was a lack of review and approval of the transaction being within period of performance. Our sample was not, and was not intended to be, statistically valid. Cause: The Organization’s controls were not adequately designed and/or operating to ensure that (1) costs charged to the VA PDM award are supported by documentation demonstrating the costs were incurred within the period of performance and (2) recurring journal entries charged to the award are supported by appropriate documentation and supervisory approval prior to posting. Effect or potential effect: Without effective controls and documentation over period of performance, there is an increased risk that costs charged to the VA PDM may be charged to the program that are not within the award's performance period. Questioned Costs: $2,960 (likely questioned costs were determined to be greater than $25,000) Repeat Finding, if applicable: This was not a repeat finding. Recommendation: Management should enhance its controls to ensure that only costs incurred within the VA PDM award’s period of performance are charged to the program and that each charge is supported by sufficient documentation. Management should maintain evidence of review and approval of payroll transactions being within period of performance. Views of Responsible Officials: Camillus House acknowledges the finding and concurs with the auditor’s assessment. Management recognizes the importance of maintaining documentation to substantiate VA PDM award’s period of performance. Accordingly, management has implemented corrective measures to strengthen internal controls and compliance procedure