Finding 22537 (2022-003)

2022-003 Department of Veteran Affairs Federal Financial Assistance Listing #64.033, 20-SD-136-21, 10/1/2021 ? 9/30/2022 Federal Financial Assistance Listing #64.033, 20-SD-136-22, 10/1/2022 ? 9/30/2023 Eligibility 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. 38 CFR Part 62.36(a) requires grantees must recertify the participant?s eligibility as a very low-income veteran family at least once every three months. Condition: Six instances were identified in which the participant was not recertified within three months. Cause: There was a misinterpretation of the requirement by the Organization. Effect: Lack of compliance with designed internal controls over eligibility could result in the Organization using funds for participants that are not eligible under the federal program. Questioned Costs: None reported Context/Sampling: A nonstatistical sample of 62 participants out of 266 total participants were selected for eligibility testing. Repeat Finding from Prior Year: No. Recommendation: We recommend the Organization review the Supportive Services for Veteran Families (SSVF) program guide with applicable employees to ensure there?s a full understanding of compliance requirements over the federal program. Views of Responsible Officials: Management is in agreement.