Finding Text
Finding Number: 2022-SA8 Significant Deficiency – Eligibility – 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: No Criteria or Specific Requirement: Internal controls over compliance should provide reasonable assurance that only eligible individuals and organizations receive assistance under federal award programs. Eligibility determinations are required to be performed to ensure the individual is eligibility in accordance with the compliance requirements of the program. Benefits should be discontinued when the period of eligibility expires unless a waiver is issued to extend. Condition: During our audit fieldwork, we noted instances that documentation was not readily available to support eligibility beyond one year. Cause: Factors beyond the control of current management, including poorly designed policies and procedures to ensure audit was completed timely, 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: Noncompliance with Uniform Guidance. Questioned Costs: None. 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: Improve documentations and tension of records regarding the approval for extended eligible individuals after one year. View of Responsible Officials: In response to Finding No. 2022-SAS Material Weakness, Eligibility, management agrees with the finding and has designed, implemented, and will continue to maintain policies and procedures to ensure compliance with the Uniform Guidance including eligibility.