Finding Text
Material Weakness in Internal Control over Financial Reporting and Noncompliance – Allowable Costs/Cost Principles. IDENTIFICATION OF FEDERAL PROGRAM: 64.033 VA Support Services for Veteran Families Program
Award 20-AK-152 Department of Veterans Affairs. CRITERIA: Title 2 U.S. Code Part 200.403(g) requires that for costs charged to a federal program to be allowable, they must be adequately documented. CONDITION: Payroll and non-payroll related costs charged to the federal major program were not documented in accordance with the Mission’s financial policies and procedures. This indicates pervasiveness across the entity. CAUSE: The Mission does not have a procedure in place to monitor all supporting documents are properly secured and documented. EFFECT OR POTENTIAL EFFECT: Not following established financial policies and procedures increases the risk that internal control failures, questioned costs and noncompliance could arise in the future over federal programs. RECOMMENDATION: We recommend the Mission reviews its financial policies and procedures and implement and/or revise accordingly to ensure they conform to both Uniform Guidance and internal policies and procedures to satisfy adequate internal control design to account for proper segregation of duties, records retention, and audit trail. VIEWS OF RESPONSIBLE OFFICIALS: See Corrective Action Plan