Arizona Department of Veterans' Services - Veterans' Donations and Military Family Relief Funds

The Arizona Department of Veterans' Services administers the Veterans' Donations Fund (donations fund) and Military Family Relief Fund (family relief fund). Although the current director has implemented a process to avoid the past misuses of the donations fund, this audit identified uses of donations fund monies that did not benefit Arizona veterans, and some donations fund expenditures did not follow applicable state statutes. The Legislature should consider statutory changes that would place additional requirements on the Department for spending donations fund monies. The Department should also take its own actions to enhance procedures and controls. In addition, the Military Family Relief Fund Advisory Committee, which reviews applications for family relief fund assistance and makes award recommendations to the department director, generally followed award eligibility criteria outlined in statute; however, auditors identified inconsistencies in some of the awards reviewed. As a result, the Committee should establish additional criteria for recommending awards from this fund. The Department should also modify its appeals process and inform applicants of their option to appeal decisions.