Finding Text
Federal Agency: U.S. Department of Veterans Affairs
Federal Program Name: VA Supportive Services for Veteran Families (SSVF)
Assistance Listing Number: 64.033
Federal Award Identification Number: 20-ZZ-026
Award Period: 10/01/2023 – 09/30/2024
Type of Finding: Material Weakness in Internal Control over Compliance and Other Matters
Compliance Requirement: Allowable Costs
Criteria or Specific Requirement: The program requires that all expenses charged to the federal award
are reasonable, allowable, and properly reconciled with documentation. Questioned costs must be
adequately documented and reconciled to ensure they are allocable and compliant with the approved budget
and travel policies.
Condition/Context: During the audit, we found the organization did not comply with the budget
requirements and grant requirements. The organization reimbursed an officer’s husband travel expenses
which was not allowable as it did not have a direct service benefit. The reimbursement claimed was
ineligible.
Cause: The organization’s internal controls over travel expenditures are insufficient, and there is no
systematic process in place to reconcile travel costs with the documented allowable amounts. This lack of
reconciliation may lead to discrepancies between the actual travel costs and the allowable amounts.
Effect: Failure to reconcile questioned costs with allowable travel costs increases the risk of improper
payments and non-compliance with federal requirements. This can result in disallowed costs or adjustments
to the federal program, affecting the program's financial integrity.
Recommendation: We recommend implementing a process to ensure all travel costs are reconciled with
the allowable amounts and that discrepancies are addressed promptly. The organization should also
strengthen internal controls to verify that travel expenditures are in compliance with federal policies and
properly documented.
Repeat Finding: This is not a repeat finding.
Questioned Costs: $647
Corrective Action Plan (CAP)
Explanation of Disagreement with Audit Findings:
There is no disagreement with the audit finding.Actions Planned in Response to Finding:
The organization will implement a reconciliation process to verify that all travel costs align with the
allowable amounts under the SSVF program’s policies. Additionally, relevant staff will be trained to
ensure full compliance with federal travel regulations and documentation requirements.
Official Responsible for Ensuring CAP:
The Interim ED will be responsible for overseeing the implementation of corrective actions.
Planned Completion Date for CAP:
The planned completion date was October 10, 2024.
Plan to Monitor Completion of CAP:
The Board of Directors monitored the completion of the CAP as new policy at Board Meeting.