Finding 565798 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-23

AI Summary

  • Core Issue: One of the three financial reports reviewed contained duplicate invoices and purchase orders, indicating a lack of thorough review before submission.
  • Impacted Requirements: The Organization failed to comply with Uniform Guidance and HUD reporting requirements, risking grant funding and project integrity.
  • Recommended Follow-Up: Enhance policies and procedures for financial reporting to prevent future errors, with a target completion date of May 28, 2025.

Finding Text

Criteria: The Uniform Guidance and The US Department of Housing and Urban Development require the entity to submit certain reports. Per Uniform Guidance, the federal agency or the pass-through entity may have developed its own forms for financial reporting. These forms may be in addition to or in lieu of the standard federal financial reports and may include electronic submissions. The US Department of Housing and Urban Development requires a written request to closeout assistance listing number 14.251 the Economic Development Initiative, Community Project Funding, and Miscellaneous Grant (CFR part 200, subpart D). A financial report is provided giving the amount and types of project costs charged to the grant (that meet the allowability and allocability requirements of 2 CFR part 200, subpart E); a certification of the costs; and the amounts and sources of other project funds. The financial report provided had duplicate invoices and purchase orders. Condition: Based on 3 reports selected for testing, 1 had duplicate data. Cause: The federal financial reports submitted to the grantor did not have adequate administrative review prior to submission. Effect: The Organization was not in compliance with reporting requirements. Recommendation: We recommend that the Organization enhance its policies and procedures over reporting. Completion Date: May 28, 2025

Corrective Action Plan

Management accepts the recommendation. Corrective Action Taken: • Immediate Correction: The incorrect report was promptly reviewed, corrected and resubmitted to the appropriate entity on 05/28/2025 • Notification: Relevant stakeholders were informed of the error and corrective resubmission. Preventative Measures and Process Improvements: • Dual Review Protocol: A two-step verification process has been instituted, requiring two qualified team members to review and sign off on all critical reports prior to submission. Person Responsible for Corrective Action Plan: Kyle Steffen, COO Date of Correction: 05/28/2025

Categories

Reporting Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 1142240 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $3.42M
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $2.00M
64.024 Va Homeless Providers Grant and Per Diem Program $1.32M
64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program $697,051
64.056 Legal Services for Veterans Grants $149,901
93.588 Community Schools Youth Services and Supervision Program $77,352
14.218 Community Development Block Grants/entitlement Grants $44,036
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $20,000
64.058 Veteran and Spouse Transitional Assistance Grant Program (vstagp) $19,842
14.231 Emergency Solutions Grant Program $15,000
97.024 Emergency Food and Shelter National Board Program $14,025