Finding Text
Finding Number: 2022-SA6 Material Weakness – Special Tests – 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-SA6 Criteria or Specific Requirement: 38 CFR Part 61 section 61.80(c) states recipients must include a summary of quarterly assessments in their administrative files. Condition: It is unknown if such records were appropriately maintained. Cause: Factors beyond the control of current management, including poorly designed policies and procedures, 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 related to Federal awards. 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 should be designed and implemented to ensure compliance requirements of Federal awards are followed. View of Responsible Officials: In response to Finding No. 2022-SA6, management agrees with the finding. Corrective actions were implemented in subsequent fiscal years, including the establishment and implementation of policies and procedures designed to ensure compliance with applicable federal award requirements.