Finding Text
Finding Number: 2022-SA4 Material Weakness – Reporting – Compliance and Control Finding Federal Award: No. 64.024 VA Homeless Providers Grant and Per Diem Program Federal Agency: U.S. Veterans Administration Pass-Through Entity: Not applicable Repeat Finding: Yes – 2021-SA4 Criteria or Specific Requirement: The Organization is required to prepare and submit timely, accurate, and complete SF-425 Reports and Performance Reports. Condition: The Organization could not provide evidence of reports submitted during the year. Cause: Factors beyond the control of current management, including poor recordkeeping, have caused reports to be unavailable, as key members of the accounting department left the Organization before appropriately transferring knowledge and records related to the Federal awards. Effect or Potential Effect: Potential for noncompliance due to potential for untimely, inaccurate, incomplete reports or reports that were not submitted altogether. Questioned Costs: Related questioned costs are unknown. Context: These issues stem from policies and procedures established by former key accounting personnel, predate current management’s oversight, and were therefore outside their direct control. Recommendation: Policies and procedures over federal grant reporting should be designed and implemented to ensure reports are filed on time and are accurate and complete. View of Responsible Officials: In response to Finding No. 2022-SA4, management agrees with the finding. Corrective actions were implemented in subsequent fiscal years, including the establishment of policies and procedures designed to ensure that federal grant reporting is complete, accurate, and submitted in a timely manner.