Finding 12720 (2022-006)

Significant Deficiency
Requirement
H
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 17548
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: A significant deficiency in internal controls was identified, where costs were charged to a grant period after the award period ended.
  • Impacted Requirements: Federal award costs must be recorded in the correct award period to ensure compliance.
  • Recommended Follow-Up: Review and update policies to ensure authorization from the federal agency is obtained for any costs incurred after the award period.

Finding Text

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Costs incurred federal award programs are to be recorded in the correct award period. Condition: A cost recorded and charged to the grant period was performed after the grant period. Questioned costs: There are no questioned costs. Context: For one of 18 disbursements selected for testing, the disbursement was incurred after the grant period for which the cost was applied. Cause: The Inner Voice was not aware of the need for authorization of the federal awarding agency in these instances. Effect: General disbursements that are not monitored for cut off at the end of an award period will result in the expense recorded in the incorrect award period. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Inner Voice review its policies and procedures at the conclusion of an award period and obtain authorization from the federal awarding agency for costs incurred after the award period. Views of responsible officials: Inner voice has approached VA Authority on this issue and they have no issue as this cost is immaterial. However, moving forward Inner voice will not allocate cost to the program and grant unless work is completed or approved by the funder in instances where the work cannot be completed during the program year.

Corrective Action Plan

Department of Veterans Affairs 2022-006 VA Homeless Providers Grant and Per Diem Program ? Assistance Listing No. 64.024 Recommendation: We recommend the Inner Voice review its policies and procedures at the conclusion of an award period and obtain authorization from the federal awarding agency for costs incurred after the award period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Inner voice has approached VA Authority on this issue and they have no issue as this cost is immaterial. However, moving forward Inner voice will not allocate cost to the program and grant unless work is completed or approved by the funder in instances where the work cannot be completed during the program year. Name of the contact person responsible for corrective action: CFO Planned completion date for corrective action plan: Effective immediately.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12716 2022-001
    Material Weakness
  • 12717 2022-002
    Significant Deficiency
  • 12718 2022-004
    Significant Deficiency
  • 12719 2022-005
    Significant Deficiency
  • 12721 2022-003
    Significant Deficiency
  • 589158 2022-001
    Material Weakness
  • 589159 2022-002
    Significant Deficiency
  • 589160 2022-004
    Significant Deficiency
  • 589161 2022-005
    Significant Deficiency
  • 589162 2022-006
    Significant Deficiency
  • 589163 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.805 Homeless Veterans Reintegration Project $498,884
64.024 Va Homeless Providers Grant and Per Diem Program $116,879
21.027 Coronavirus State and Local Fiscal Recovery Funds $55,000
14.218 Community Development Block Grants/entitlement Grants $33,496
14.267 Continuum of Care Program $24,465
97.024 Emergency Food and Shelter National Board Program $10,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,500
14.231 Emergency Solutions Grant Program $2,700