The VA Office of Inspector General (OIG) conducted this audit to evaluate the merits of a 2018 hotline complaint alleging the executive director of the Cincinnati Education and Research for Veterans Foundation (CERV), a VA-affiliated nonprofit corporation, used the CERV credit card inappropriately for personal expenses. In addition, the OIG broadly examined whether CERV had adequate controls in place for ensuring proper expenditures and whether the CERV board of directors provided adequate oversight of CERV expenditures. The audit team did not substantiate the allegation that the CERV executive director used the CERV credit card inappropriately. The team noted that some CERV financial controls appeared effective, but identified other controls that were inadequate or absent. The audit team also found the invoice review procedures of the Cincinnati VAMC Research and Development (R&D) Budget Office did not comply with VA internal controls to confirm services were performed in accordance with the agreement before approving invoices for payment. The OIG recommended the Cincinnati VAMC director ensure CERV’s board of directors establishes policies that require responsible officials to verify adequate supporting documentation before approving expenditures. The OIG also recommended the Cincinnati VAMC director make certain that CERV’s board of directors, or responsible officials, approve reimbursements to the executive director. In addition, the OIG recommended the Cincinnati VAMC director establish procedures so the R&D Budget Office staff review VA-affiliated nonprofit corporation invoices and confirm services were performed or the goods were received in accordance with Intergovernmental Personnel Act agreements prior to payment. Finally, the OIG recommended the Cincinnati VAMC director establish procedures that require the R&D Budget Office supervisor to conduct periodic reviews of VA-affiliated nonprofit corporation invoices authorized for payment by staff, as required by VA policy.
Cincinnati, OH
United States
