Finding Text
2024-003 Subrecipient Monitoring and Allowable Costs – Material Weakness
Federal Programs – AL 64.033 – VA Supportive Services for Veteran Families
Criteria – A good system of internal controls allows for the compliance with Uniform Guidance to
monitor funds that are passed through to subrecipients and the continued stewardship of those
federal dollars.
Condition – For the year ended December 31, 2024, we discussed the policies and procedures
in effect for CAPND employees to adequately monitor the subrecipients under the Supportive
Services for Veteran Families (SSVF) grant. Although the policies and procedures in effect
during the year ended December 31, 2024 were appropriately designed, they were not
completed throughout the year.
Cause – There was a general misunderstanding between staff and management on the process
of completing subrecipient monitoring controls throughout the year.
Effect – Noncompliance will not be prevented or detected and corrected in a timely manner.
Repeat Finding – This is not a repeat finding.
Recommendation - The subrecipient monitoring policies and procedures should be updated to
include specific milestones and broken down into specific tasks that are to be achieved
throughout the year. These could then be monitored through meetings between the board
treasurer and the SSVF program coordinator. Redundancies and cross-training could be
included to reduce the risk that lapses in monitoring occur due to staff turnover or extended absences. In addition, training for all staff upon employment and periodically throughout the
year over SSVF policies and procedures would allow for better clarity and understanding.
Views of Responsible Officials - Management recognizes the deficiency and plans to implement
the auditor’s recommendation.