Finding Text
U.S. Department of Veterans Affairs
Section 3 – Federal Award Findings and Questioned Costs
Finding Number 2023-002 (Material Weakness)-Audit Period: January 1, 2023 through December 31, 2023
Condition: The Organization recorded several transactions through journal entries to federal programs without a documented review and approval. The questioned costs related to this issue total approximately $52,000.
Criteria: Journal entries to federal awards should be reviewed and approved by the appropriate level of management.
Cause: Journal entries are not documented as reviewed and approved routinely.
Effect: Questioned costs attributed to the federal program.
Recommendation: Postings to federal programs should be reviewed and approved by the appropriate level of management.
Management’s Response: The Organization has incurred turnover in finance in recent years and a new team will be in place for the 2024 audit. The Organization will review postings to federal programs as part of its year end closing process.