HOPESOURCE

Finding 2022-001 Significant deficiency in internal control over compliance related to reporting. Federal Agency: U.S. Department of Veterans Affairs Program Title: VA Supportive Services for Veteran Families Program Assistance Listing Number: 64.033 Project Number: 20-WA-338-22 Award Period: October 1, 2021 - March 31, 2023 Federal Agency: U.S. Department of Veterans Affairs Program Title: VA Supportive Services for Veteran Families Program Assistance Listing Number: 64.033 Project Number: 20-WA-338-C2 Award Period: October 1, 2020 - June 30, 2022 Criteria Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282) (Transparency Act) that are codified in 2 Code of Federal Regulations (CFR) Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements who make first tier subawards of $30,000 or more are required to register the covered subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report the required subaward data no later than the last day of the month following the month the subaward was made. Condition/Context for Evaluation During the year ended December 31, 2022, HopeSource lacked a process to report required subaward data in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) and report subaward data through FSRS for those subrecipients receiving over $30,000. Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements 1 1 1 N/A 1 Dollar Amount of Transactions Tested Subaward Not Reported Report Not Timely Subaward Amount Incorrect Subaward Missing Key Elements $786,000 $786,000 $786,000 N/A $786,000 Effect or Potential Effect HopeSource did not comply with the subaward reporting requirements as specified in 2 CFR 170. Questioned Costs Not applicable. Cause Internal controls were not designed adequately to ensure required reporting in FSRS was made. Repeat Finding No Recommendation We recommend that HopeSource implement the necessary internal controls to ensure required reporting is made in the FSRS. Views of Responsible Officials Management agrees that the required FSRS report was not made. After the issue was raised as part of the Single Audit, management took measures to enter the requires subawards.

Finding Number 2022-001 Federal Funding Accountability and Transparency Act (FFATA) reporting Contact Person(s): Ariam Mehtsentu Explanation and specific reasons for disagreement with the audit finding or that corrective action is not required (if applicable): NA Corrective action planned: The FFATA sub-awarding reports for 20-WA-338C2 and 20-WA-33822 were not initially submitted. However, after the issue was raised during the Single Audit, both reports were subsequently submitted on July 20, 2023. A process is developed to ensure any required subawards information is timely reported in the Federal Subaward Reporting System (FSRS). Anticipated completion date: Submitted on July 20, 2023.