Cleveland Veterans Home Faces Scrutiny After State Audit Reveals Major Financial Irregularities 

A recent state audit which was released November 12, 2025, the day after Veteran’s Day has raised serious concerns about financial management at the Cleveland Veterans Home, spotlighting significant errors and systemic issues across Tennessee’s Veterans Homes. The audit, which covers the fiscal year ending June 30, 2024, highlights ongoing financial mismanagement that has persisted despite previous warnings.

The findings of the audit are alarming. The Tennessee State Veterans’ Homes Board’s management has been criticized for its inability to produce timely and accurate financial statements, a serious oversight previously flagged in two earlier audits. 

Auditors reported that it took six different versions of the financial statements, submitted from January to May 2025, before they could finally review a coherent document. Unfortunately, even the final version contained discrepancies regarding cash balances. Key findings include:

1. Lack of Proper Financial Controls: Management failed to implement the necessary controls to prepare accurate financial statements, continuing a troubling trend noted in previous audits.

2. Inadequate Accounts Payable Reconciliation: The board did not maintain proper controls over accounts payable reconciliations, leading to numerous errors in the general ledger and financial statements.

3. Failure to Address Previous Audit Concern: The audit reiterated that management had not provided adequate internal controls in a specific area previously identified in earlier reviews.

The audit uncovered staggering financial misclassifications and inaccuracies, including:

– Misclassified Construction Costs: A staggering $47 million in construction costs at the Cleveland Veterans Home was improperly categorized.

– Incorrect Federal Grant Records: Almost $19 million in federal grant-related receivables and payables were recorded incorrectly.

– Vendor Payments Not Recorded: Over $7 million in vendor payments were missing from the financial system.

– Misstated Financial Notes and Cash Flows: Significant misstatements were found in financial notes and cash flows, raising further questions about the integrity of financial reporting.

– Overstated Construction Commitments: Outstanding construction commitments were overstated by $67 million, adding to the fiscal chaos.

These findings raise serious questions about the oversight and management practices at the Cleveland Veterans Home, which is intended to provide care and support to veterans who have served the country. The implications of these financial errors could affect not only the operational capacity of the home but also the quality of care provided to its residents.

As the audit report circulates, stakeholders are calling for immediate reforms and a thorough investigation to ensure that such financial mismanagement does not continue. 

For those interested in further details, the full audit report is available here:

https://comptroller.tn.gov/content/dam/cot/sa/advanced-search/disclaimer/2025/ag25049.pdf