Southwest Solutions, Inc. and Subsidiaries d/b/a MiSide Community Impact Network

2020-002 CFDA Number, Federal Agency, and Program Name: 64.033 U.S. Department of Veterans Affairs - VA Supportive Services for Veteran Families Program Federal Award Identification Number and Year: 12MI-045 Pass-through Entity: Not applicable Finding Type: Material weakness and noncompliance with laws and regulations Repeat Finding: Yes Criteria: The Supportive Services for Veteran Families (SSVF) Program Guide states that all program participants are required to undergo recertification at least once every three months to ensure eligibility for the program is maintained, as defined under 38 CFR 62.2 and 38 CFR 62.11 (a). Statement of condition: The Organization did not perform required recertifications at least every three months to support continued participant eligibility throughout the fiscal year for certain program participants. Questioned Costs: Unknown Identification of How Questioned Costs Were Computed: Not applicable Context: During our testing of eligibility, we noted that 1 out of the 40 participants sampled did not have evidence of the recertifications being performed timely. The program requires recertification at least once every three months. Cause and Effect: Controls in place did not ensure the Organization performed participant recertification procedures within the prescribed time frame. The lack of recertification could result in ineligible participants receiving benefits. Recommendation: We recommend that the Organization review its procedures and controls to ensure eligibility recertifications are performed at least once every three months and that documentation that evidences the procedures be maintained. Management's Response: In September 2020, in an effort to reduce the number of late recertifications in the SSVF Program, management implemented a new policy to exit noncompliant clients after 97 days of non-recertification. The additional 7 days provided after the 90th day is based on guidance received during the program?s FY20 Federal and Operational Fitness Audit (FOFA) and represents a 7-day grace period for completion. Of the (40) forty clients tested during the FY20 audit, only (1) one client exited after 97 days. The client in question, who exited after 112 days, received one-time financial assistance for a hardship upon entering the program. The client did not need or request any additional assistance.

CFDA Number, Federal Agency, and Program Name: 64.033 U.S. Department of Veterans Affairs - VA Supportive Services for Veteran Families Program Federal Award Identification Number and Year: 12MI-045 Pass-through Entity: Not applicable Finding Type - Material weakness and noncompliance with laws and regulations Repeat Finding - Yes Criteria: The Supportive Services for Veteran Families (SSVF) Program Guide states that all program participants are required to undergo recertification at least once every three months to ensure eligibility for the program is maintained, as defined under 38 CFR 62.2 and 38 CFR 62.11 (a). Statement of condition: The Organization did not perform required recertifications at least every three months to support continued participant eligibility throughout the fiscal year for certain program participants. Questioned Costs: - Unknown Identification of How Questioned Costs Were Computed: - Not applicable Context: During our testing of eligibility, we noted that 12 out of the 40 participants sampled did not have evidence of the recertifications being performed timely. The program requires recertification at least once every three months. Cause and Effect: Controls in place did not ensure the Organization performed participant recertification procedures within the prescribed time frame. The lack of recertification could result in ineligible participants receiving benefits. Recommendation: We recommend that the Organization review its procedures and controls to ensure eligibility recertifications are performed at least once every three months and that documentation that evidences the procedures be maintained. Management's Response: In an effort to reduce the number of late recertifications in the SSVF Federal Program, Southwest Counseling Solutions management has implemented the following policy as of September 2020: The SWCS SSVF Program requires recertification?s of eligibility to be completed every 80 days. The program implemented the 80-day standard to reduce the instances of late recertification?s of eligibility. The process below outlines the steps taken when a recertification of eligibility is not completed on time: If a recertification of eligibility is not completed within 80 days, the SSVF Case Manager is notified that it is overdue. If a recertification of eligibility is not completed by the 90th day, the SSVF Case Manager is notified that one must be completed within the next 7 days, or the Veteran household will be exited from the program. a. The additional 7 days provided after the 90th day is based on guidance received during the program?s fiscal year 2020 Federal and Operational Fitness audit. Auditors advised that there is a 7-day grace period for completion of the recertification of eligibility. b. If a recertification of eligibility, or program exit, is not received by the 97th day, the SSVF supervisor exits the Veteran household from the program.

CFDA Number, Federal Agency, and Program Name: U.S. Departments of Health and Human Services, Housing and Urban Development, Education, Treasury, Labor, and Veterans Affairs and Commission for National and Community Services Federal Award Identification Number and Year: All Pass-through Entity: Not applicable Finding Type: Significant deficiency and noncompliance with laws and regulations Repeat Finding: No Criteria: The Organization should have controls in place to meet the Uniform Guidance requirement of filing the data collection form along with the audited consolidated financial statements within nine months after the end of the year. Statement of condition: The Organization did not file the audited consolidated financial statements and the data collection form within nine months after the end of the year. Questioned Costs: Unknown Identification of How Questioned Costs Were Computed: - Not applicable Context: Uniform Guidance requires the audited consolidated financial statements and the data collection form to be submitted with nine months after the end of the year. Cause and Effect: Controls in place did not ensure the Organization filed the audited consolidated financial statements and the data collection form on a timely basis. Recommendation: We recommend that the Organization review its procedures and controls to ensure the audited consolidated financial statements and the data collection form are submitted within nine months after the end of the fiscal year. Management's Response: Management agrees that Southwest Solutions? consolidated audited financial statements were not completed timely and thus the single audit was not completed and filed in a timely manner, as required by Uniform Guidance. As a result of management?s decision to report on a consolidated basis, the delay in the completion and issuance of the consolidated financial audit unexpectedly delayed the issuance of the single audit. Management will review audit options for the next fiscal year and future audit years to ensure timely filing.