Finding 589160 (2022-004)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 17548
Organization: The Inner Voice, Inc. (IL)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding employee salary documentation for the VA Homeless Providers Grant.
  • Impacted Requirements: Compliance with 2 CFR Part 200 is compromised as the CEO's employment agreement lacks a specified salary, leading to unsubstantiated salary payments.
  • Recommended Follow-Up: Ensure all employee personnel files are accurate and include complete agreements with position title, salary, and effective dates to meet federal requirements.

Finding Text

Federal Agency: Department of Veterans Affairs Federal Program Name: VA Homeless Providers Grant and Per Diem Program Assistance Listing Number: 64.024 Federal Award Identification Number and Year: INNV143-1419-537-PD-21; INNV143-1620-537-TP-21; INNV143-1075-537-CM20; INNV143-2290-537-CM-22 Award Period: 10/1/20-9/30/21; 10/1/21-9/30/22; 10/1/20-9/30/23 Type of Finding: ? Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Condition: During the course of our audit, we noted a salaried employee included no salary included with the employment agreement to support their salary. Questioned costs: None. Context: The Inner Voice requires the CEO to have an agreement issued by the board chair that includes the position title, salary, and date of employment. Cause: The signed agreement available included no salary listed. Effect: No salary included in the available employment agreements leads to an unsubstantiated salary paid to an existing employee. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Inner Voice maintain accurate and current information in all employee personnel files to be in compliance with 2 CFR Part 200. Views of responsible officials: In response to the finding raised that Inner Voice required the CEO to have an agreement issued by the Board Chair that not only includes the position title and date of employment but should also have mentioned salary. Moving forward Inner Voice?s Board Chair should provide a letter to the HR for the appointment and/or pay increase with the effective date which will also include name and salary.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 12716 2022-001
    Material Weakness
  • 12717 2022-002
    Significant Deficiency
  • 12718 2022-004
    Significant Deficiency
  • 12719 2022-005
    Significant Deficiency
  • 12720 2022-006
    Significant Deficiency
  • 12721 2022-003
    Significant Deficiency
  • 589158 2022-001
    Material Weakness
  • 589159 2022-002
    Significant Deficiency
  • 589161 2022-005
    Significant Deficiency
  • 589162 2022-006
    Significant Deficiency
  • 589163 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.805 Homeless Veterans Reintegration Project $498,884
64.024 Va Homeless Providers Grant and Per Diem Program $116,879
21.027 Coronavirus State and Local Fiscal Recovery Funds $55,000
14.218 Community Development Block Grants/entitlement Grants $33,496
14.267 Continuum of Care Program $24,465
97.024 Emergency Food and Shelter National Board Program $10,000
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,500
14.231 Emergency Solutions Grant Program $2,700