Finding Text
Item: 2024-005
Assistance Listing Number: 64.024
Program: VA Homeless Providers Grant and Per Diem Program
Federal Agency: U.S. Department of Veteran Services
Pass-Through Agencies: n/a
Contract Number: CCAZ999-4582-649-TP-24
Award Year: October 2021 to September 2023; October 2023 to September 2026
Compliance Requirement: Reporting
Criteria: In accordance with the grant agreements, the Organization is required to submit per diem financial reports requesting payment based on the units of service provided multiplied by a per diem rate as specified in the grant agreement.
Condition: In preparation of the per diem financial reports, the incorrect per diem rate was used to calculate the amount requested for payment for two reports.
Questioned Costs: n/a
Context: In a population of 24 per diem financial reports, we conducted a non-statistical sample of eight reports. In our sample of eight, we noted that the incorrect per diem rate was utilized for two financial reports. Based on our review of the entire population of per diem reports and the contracted per diem rates, we noted that in accordance with the contract, the per diem rate was increased from $84.15 to $89.54 effective February 2024. However, the Organization’s financial reports for the period February 2024 – June 2024 used an incorrect per diem rate of $84.09. As a result of the Organization billing at the incorrect per diem rate, the funding agency was underbilled $2,616.
Effect: As a result of the Organization billing at the incorrect per diem rate, the funding agency was underbilled $2,616. This is deemed to be a material weakness in internal control over compliance.
Cause: The Organization did not have a process in place to ensure updates to the per diem rates were identified timely and properly utilized. Additionally, the Organization did not have a sufficient supervisory review process implemented for the reports submitted to the granting agency.
Identification as a Repeat Finding: Not a repeat finding
Recommendation: The Organization should implement additional controls to ensure updates to the per diem rates are identified timely. The Organization should also implement additional controls to ensure reports are reviewed and approved prior to submission to the granting agency. This review and approval should be clearly documented.
Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.