Finding Text
Finding Number: 2021-SA4 Material Weakness – Reporting – Compliance and Control Finding
Federal Award: No. 64.024 VA Homeless Providers Grant and Per Diem Program
Federal Agency: U.S. Veterans Administration
Pass-Through Entity: Not applicable
Criteria or Specific Requirement: The Organization is required to prepare and submit timely, accurate, and complete SF-425 Reports and Performance Reports.
Condition: The Organization could not provide evidence of reports submitted during the year.
Cause: Factors beyond the control of current management, including poor recordkeeping, have caused reports to be unavailable, as key members of the accounting department left the Organization before appropriately transferring knowledge and records related to the Federal awards.
Effect or Potential Effect: Potential for noncompliance due to potential for untimely, inaccurate, incomplete reports or reports that were not submitted altogether.
Questioned Costs: Related questioned costs are unknown.
Context: During the year under audit, the issues represent a systemic problem, beyond the control of current management.
Recommendation: Policies and procedures over federal grant reporting should be designed and implemented to ensure reports are filed on time and are accurate and complete.
View of Responsible Officials: In response to finding number 2021-SA4, management agrees with the finding and will design, implement, and maintain policies and procedures that ensure Federal grant reporting is complete, accurate, and timely.