Finding Text
Material Weakness in Internal Control over Compliance and Noncompliance – Cash Management. IDENTIFICATION OF FEDERAL PROGRAM: 64.033 VA Support Services for Veteran Families Program Award 20-AK-152 Department of Veterans Affairs. CRITERIA: Per the grant award - Recipients must have procedures for minimizing the time elapsing between the transfer of any advance payments of funds under the award and disbursement of the funds for direct program costs and the proportionate share of any allowable indirect or facilities and administrative costs. Recipients must ensure that the timing and amount of any payments to sub-recipients under the award conform to this standard. Per the SSVF Program Guide Section VII – Fiscal Administration Cash Dra Down Process – 1. Overview of Disbursement Grantees may draw down supportive services grant funds prospectively via the internet-based PMS in accordance with the restrictions laid out in the NOFA. Draw down requests are submitted and processed online via the request functions of the PMS platform. Once a draw down request is submitted, disbursement is completed by electronic funds transfer to the grantee's bank account the following business day. Grantees have three days to expend the funds that are drawn down from the HHS system. If funds are not expended within three days, a grantee must contact the VA to plan for paying interest on those funds.CONDITION: It was noted during the audit of fiscal year 2021 that the Mission did not still have records maintained from all the drawdown requests that occurred during the fiscal year 2021. CAUSE: There was turnover at the Mission and prior management did not have an adequate administrative filing system and are not available to track down documents related to the fiscal year 2021. EFFECT OR POTENTIAL EFFECT: The Mission could have been out of compliance with Uniform Guidance cash management standards. QUESTIONED COSTS: None. CONTEXT: For this program, there were 45 cash drawdowns that occurred during fiscal year 2021, a random sample of five were requested to test against the grant awards cash draw down requirements, of those five, current management was unable to locate the support showing that the Mission followed the cash draw down process for those three cash draw downs. IDENTIFICATION OF REPEAT FINDING: Not Applicable. RECOMMENDATIONS: We recommend that as a part of the Mission’s internal control structure over compliance with cash management requirements to establish monitoring procedures to ensure records documenting the Mission’s cash management procedures are maintained. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan