Finding Text
Department of Veteran Affairs FFAL #64.033, 20-SD-136-25, 10/1/2024 – 12/31/2025 VA Supportive Services for Veteran Families Program Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. 2 CFR 200.328 and 2 CFR 200.329 require the auditee to collect financial information and monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved and report these items in accordance with the program requirements. Condition: No review and approval processes were in place over 2 quarterly progress reports. Cause: Management did not have review procedures and processes in place over the quarterly progress reports until the quarter report ending June 30, 2025. Effect: Without review procedures and processes in place over reporting, demonstrating the program complies with laws, regulations, and other compliance requirements is difficult. Additionally, not having an oversight process over reporting could result in a reasonable possibility reports that are inaccurate or incomplete could be submitted. Questioned Costs: None reported Context/Sampling: Included under two award letters of the federal program, one annual financial report and 2 quarterly progress report were reviewed in the Organization’s fiscal year. In addition, two monthly HMIS reports were reviewed in the Organization’s fiscal year. There was a total of 16 reports filed. Repeat Finding from Prior Year: Yes, prior year finding 2024-003. Recommendation: Management implemented procedures and control processes to incorporate an independent review and approval over reporting effective for the quarterly progress report ending June 30, 2025. We recommend to continue following the implemented procedures and control processes and retain documentation to support the review was performed. Views of Responsible Officials: Management is in agreement.