We conducted this audit to determine whether community agencies receiving funds from the Grant and Per Diem Program (GPDP) are providing services to homeless veterans as agreed upon in their grant agreements or authorized changes of scope. We also examined whether program funding is effectively aligned with program priorities. We found the VHA GPDP provided services to homeless veterans and had successfully assisted veterans to live independently in safe and affordable permanent housing. However, an incomplete grant application evaluation process; a lack of program safety, security, health, and welfare standards; and an inconsistent monitoring program impacted the program’s effectiveness. As a result, VHA did not ensure homeless veterans consistently received the supportive services agreed to in approved grants. In addition, funding was not effectively aligned with program goals. We recommended strengthening the grant application and evaluation process by publishing policies and standards, updating the inspection checklists, and implementing procedures to ensure grant providers had the capability to deliver services. The Under Secretary for Health concurred with our findings and recommendations and provided appropriate action plans.