Finding Text
Information on Federal Program: U.S. Department of Veteran Affairs, Homeless Providers Grant and Per Diem Program (Assistance Listing #64.024; Award Year: Fiscal 2023)
Finding Type: Significant Deficiency
Criteria: The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
Condition and Context: For two annual financial reports selected for testing, we noted one annual financial report was submitted 88 days after the required due date as indicated in the grant contract. The sample was not, and was not intended to be, a statistically valid sample.
Cause: The Organization’s existing internal controls in place over grant reporting did not prevent the late submission of an annual financial report.
Effect or Potential Effect: Late submission of required reporting deliverables could result in the restriction of draw downs, delay of funds and/or denial of future funds.
Questioned Costs: None
Recommendation: The Organization should implement a stronger process and related internal controls surrounding grant reporting requirements to ensure reports are timely filed by the required due dates.
Views of Responsible Officials: Due to an oversight by the finance department, the annual federal financial report was not submitted within the deadline for one of the associated grants, although timely filing was performed for the other grant.
Planned Implementation Corrective Action: Additional preventive internal control procedures will be implemented, including internal tracking of specific grant reporting requirements, to ensure timle filing for all reporting requirements. These procedures and internal controls have been implemented as of the date of this report.
Person Responsible for Corrective Action: Chief Financial Officer