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: Significant Deficiency in Internal Control over Compliance and Other Matters
Compliance Requirement: Cash Management
Criteria or Specific Requirement: The organization is required to ensure that all drawdowns are properly
reconciled to the financial records to maintain accurate accounting and compliance with federal regulations.
This includes verifying that expenditures are correctly matched with drawdowns and that all necessary
documentation supports these transactions.
Condition/Context: During the audit, it was observed that the organization did not consistently reconcile
drawdowns with actual expenditures for the SSVF program. This lack of reconciliation increases the risk
of financial discrepancies, misstatements, or non-compliance with federal requirements.
Effect: The lack of a formal reconciliation process increases the risk of financial errors or misstatements
in the SSVF program's records. Without adequate reconciliation, there is a heightened risk of misreporting
expenditures, which could lead to financial discrepancies, non-compliance with federal regulations, or
disallowed costs.
Cause: The cause of this issue is the absence of a formalized and consistently applied drawdown
reconciliation process for the SSVF program.
Recommendation: We recommend that the organization implement a formal drawdown reconciliation
process to ensure that all drawdowns related to the SSVF program are accurately reconciled with actual
expenditures. The process should include maintaining clear documentation of reconciliation steps to
enhance the integrity and accuracy of financial records.
Repeat Finding: This is not a repeat finding.
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 establish and implement a formal drawdown reconciliation process. This will include
developing written procedures, training staff on reconciliation requirements, and maintaining clear
documentation for each reconciliation. Executive personnel will conduct monthly reviews to verify
compliance and address any discrepancies promptly prior to drawdown. 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 is March 1, 2025.
Plan to Monitor Completion of CAP:
The Board of Directors meet with the Executive team at least quarterly to review financials.