FAC Explorer

Audit 11927

FY End
2023-06-30
Total Expended
$39.42M
Findings
2
Programs
13
Organization: Interfaith Ministries for Greater Houston (TX)
Year: 2023 Accepted: 2024-01-17
Auditor: Blazek & Vetterling

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8745 2023-001 Significant Deficiency - E
585187 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
93.566 Refugee and Entrant Assistance_state Administered Programs $27.40M Yes 0
93.576 Refugee and Entrant Assistance_discretionary Grants $2.51M - 0
19.510 U.s. Refugee Admissions Program $1.93M - 0
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $1.12M - 0
93.667 Social Services Block Grant $940,008 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $696,231 Yes 1
97.024 Emergency Food and Shelter National Board Program $314,267 - 0
94.006 Americorps $249,982 - 0
14.218 Community Development Block Grants/entitlement Grants $247,573 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $209,941 - 0
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $70,557 - 0
10.569 Emergency Food Assistance Program (food Commodities) $45,822 - 0
97.067 Homeland Security Grant Program $24,000 - 0

Contacts

Name Title Type
RGJSGULQFMF8 Jennifer Leone Auditee
7138358112 Laurie Hill Gutierrez Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance, Department of the Treasury guidelines, and the Texas Grant Management Standards, and include both costs that are capitalized and costs that are recognized as expenses in Interfaith Ministries’ financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing Interfaith Ministries’ negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate. Because the schedules present only a selected portion of the operations of Interfaith Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Interfaith Ministries. De Minimis Rate Used: N Rate Explanation: THE AUDITEE HAS ELECTED NOT TO USE AN INDIRECT COST RATE. Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance, Department of the Treasury guidelines, and the Texas Grant Management Standards, and include both costs that are capitalized and costs that are recognized as expenses in Interfaith Ministries’ financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing Interfaith Ministries’ negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate. Because the schedules present only a selected portion of the operations of Interfaith Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Interfaith Ministries.
Title: NOTE 2 – FOOD COMMODITIES Accounting Policies: Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance, Department of the Treasury guidelines, and the Texas Grant Management Standards, and include both costs that are capitalized and costs that are recognized as expenses in Interfaith Ministries’ financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing Interfaith Ministries’ negotiated indirect cost rates; therefore, Interfaith Ministries does not use the 10% de minimis rate. Because the schedules present only a selected portion of the operations of Interfaith Ministries, they are not intended to and do not present the financial position, changes in net assets, or cash flows of Interfaith Ministries. De Minimis Rate Used: N Rate Explanation: THE AUDITEE HAS ELECTED NOT TO USE AN INDIRECT COST RATE. Food commodities are recognized as federal expenditures when distributed. Distributed food is reported in the schedule of expenditures of federal awards under the Emergency Food Assistance Program and is valued at the weighted-average wholesale value of one pound of donated product based on the national per pound price as provided by the most recent Feeding America Product Valuation Survey ($1.92 in 2023).

Finding Details

Finding 2023-001
Finding #2023-001 – Significant Deficiency and Other Noncompliance. Applicable Federal Program: Department of the Treasury, Passed through Texas Department of Agriculture, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: HDM2022007-129-131, Contract year: 02/22-01/23. Applicable State Program: Texas Department of Agriculture, Home-Delivered Meal Grant Program, Contract #’s: HDM2022007-129-131 and HDM2023062-098-099, Contract years: 02/22-01/23 and 02/23-01/24. Criteria: Eligibility – The Texas Administrative Code – Home-Delivered Meal Grant Program, Title 4 Agriculture, Part 1 Department of Agriculture, Chapter 1 General Procedures, Subchapter O Home-Delivered Meal Grant Program, Rule §1.959 Eligibility of Persons Served, requires that each Grantee using grant for the preparation or delivery of a Home-delivered meal must document that persons receiving a meal funded are Homebound Elderly persons or Homebound persons with a Disability as defined in §1.951. Additionally, Rule §1.961 Recordkeeping and Record Retention, requires (a) Grantees to maintain documentation as required by the Department to verify that individuals who receive meals paid for or delivered in part with grant funds received qualify as a Homebound Elderly person or Homebound person with a Disability. Interfaith Ministries’ policies and procedures require an annual re-assessment of the continued eligibility of participants served meals funded under the Home-Delivered Meal Grant Program. If an annual re-assessment has not been performed, the meals provided to the participant should be funded by other funders. Condition and context: During our testing of 60 participants for proper eligibility, we noted 2 participants were not re-assessed for eligibility by their annual anniversary and continued to receive meals funded under the Home-Delivered Meal Grant Program. Cause: Interfaith Ministries’ staff did not follow policies and procedures to change the funding source until the annual re-assessment could be performed. Effect: The two participants continued to receive approximately 79 meals funded by the Home-Delivered Meal Grant Program after the expiration of the annual eligibility date. Recommendation: Provide additional training to personnel responsible for determining eligibility for monitoring the annual reassessment and changing the funder until the reassessment can be performed. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2023-001
Finding #2023-001 – Significant Deficiency and Other Noncompliance. Applicable Federal Program: Department of the Treasury, Passed through Texas Department of Agriculture, COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing #: 21.027, Contract #: HDM2022007-129-131, Contract year: 02/22-01/23. Applicable State Program: Texas Department of Agriculture, Home-Delivered Meal Grant Program, Contract #’s: HDM2022007-129-131 and HDM2023062-098-099, Contract years: 02/22-01/23 and 02/23-01/24. Criteria: Eligibility – The Texas Administrative Code – Home-Delivered Meal Grant Program, Title 4 Agriculture, Part 1 Department of Agriculture, Chapter 1 General Procedures, Subchapter O Home-Delivered Meal Grant Program, Rule §1.959 Eligibility of Persons Served, requires that each Grantee using grant for the preparation or delivery of a Home-delivered meal must document that persons receiving a meal funded are Homebound Elderly persons or Homebound persons with a Disability as defined in §1.951. Additionally, Rule §1.961 Recordkeeping and Record Retention, requires (a) Grantees to maintain documentation as required by the Department to verify that individuals who receive meals paid for or delivered in part with grant funds received qualify as a Homebound Elderly person or Homebound person with a Disability. Interfaith Ministries’ policies and procedures require an annual re-assessment of the continued eligibility of participants served meals funded under the Home-Delivered Meal Grant Program. If an annual re-assessment has not been performed, the meals provided to the participant should be funded by other funders. Condition and context: During our testing of 60 participants for proper eligibility, we noted 2 participants were not re-assessed for eligibility by their annual anniversary and continued to receive meals funded under the Home-Delivered Meal Grant Program. Cause: Interfaith Ministries’ staff did not follow policies and procedures to change the funding source until the annual re-assessment could be performed. Effect: The two participants continued to receive approximately 79 meals funded by the Home-Delivered Meal Grant Program after the expiration of the annual eligibility date. Recommendation: Provide additional training to personnel responsible for determining eligibility for monitoring the annual reassessment and changing the funder until the reassessment can be performed. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See Corrective Action Plan.