FAC Explorer

Audit 305880

FY End
2022-12-31
Total Expended
$10.65M
Findings
6
Programs
7
Organization: Houston Regional Hiv/aids Resource Group, Inc. (TX)
Year: 2022 Accepted: 2024-05-09
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396235 2022-002 Significant Deficiency - M
396236 2022-003 Significant Deficiency - AB
396237 2022-003 Significant Deficiency - AB
972677 2022-002 Significant Deficiency - M
972678 2022-003 Significant Deficiency - AB
972679 2022-003 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.917 Hiv Care Formula Grants $7.51M Yes 0
14.241 Housing Opportunities for Persons with Aids $1.49M Yes 1
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $839,525 Yes 1
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $728,815 Yes 0
93.917 Covid-19 Hiv Care Formula Grants $75,418 Yes 0
93.918 Covid-19 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $2,046 Yes 1
93.153 Covid-19 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $87 Yes 0

Contacts

Name Title Type
MXUPMFLE8D53 Tiffany Shepherd Auditee
7135261016 Michelle Landrum Auditor
No contacts on file

Notes to SEFA

Title: Note 1: BASIS OF PRESENTATION OF SCHEDULES OF EXPENDITURES OF FEDERAL AND STATE OF TEXAS AWARDS Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards and UGMS or TxGMS, depending on grant date, for state of Texas awards. The Resource Group has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. In addition, The Resource Group did not receive any noncash assistance, federal loans, or federally funded insurance during the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. The accompanying Schedules of Expenditures of Federal and State of Texas Awards (the Schedules) present the Federal and State of Texas program fund expenditures of all Federal and State of Texas award programs of Houston Regional HIV/AIDS Resource Group, Inc. (The Resource Group) for the year ended December 31, 2022. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Therefore, some amounts presented in these schedules may differ from amounts presented in or used in the preparation of The Resource Group’s financial statements. In December 2021, the Texas Comptroller published the Texas Grant Management Standards (TxGMS) which replaces Uniform Grant Management Standards (UGMS). TxGMS applies to state grants or contracts that begin on or after January 1, 2022.
Title: Note 3: RELATIONSHIP TO FINANCIAL REPORTS SUBMITTED TO GRANTOR AGENCIES Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards and UGMS or TxGMS, depending on grant date, for state of Texas awards. The Resource Group has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. In addition, The Resource Group did not receive any noncash assistance, federal loans, or federally funded insurance during the year ended December 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. Amounts reflected in the financial reports filed with grantor agencies for the programs and the supplementary schedules may not agree because of accruals included in the next report filed with the agencies, matching requirements not included in the Schedules of Expenditures of Federal and State of Texas Awards and different program year ends.

Finding Details

Finding 2022-002
U.S. Department of Housing and Urban Development 14.241 – Housing Opportunities for Persons with AIDS Passed through Texas Department of State Health Services Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-17-0195-00001 and HHS001022300003 Texas Department of State Health Services State HIV Service Grants Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-18-0097-00001 and HHS001022300002 Criteria: Pass-through entities are required to monitor subrecipients in accordance with 2 CFR Section 200.332. Further, under 2 CFR Section 200.303a, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients. Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023. Effect: As a result of not completing all financial monitoring and the turnover in Finance Director, The Resource Group is not in compliance with grant requirements. Questioned Costs: None Noted Recommendation: The Resource Group should follow its policies to perform fiscal monitoring on its subrecipients in accordance with 2 CFR Section 200.332. Views of Responsible Officials: See corrective action plan.
Finding 2022-003
U.S. Department of Health and Human Services 93.918 – Ryan White Title C Passed through Health Resources and Services Administration Award Periods: April 1, 2021 to March 31, 2022, May 1, 2021 to April 30, 2022, and May 1, 2022 to April 30, 2023 Contract No. H7CHA36798-01-03, H76HA00684-22-00, and H76HA00684-23-00 Texas Department of State Health Services State HIV Service Grants Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-18-0097-00001 and HHS001022300002 Criteria: Pass-through entities are required to submit costs for reimbursement that meet the provisions of 2 CFR Subpart E. Further, under 2 CFR Section 200.303a, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: Certain costs reimbursed to a subrecipient were not properly supported by underlying documentation. Management represented the documentation for the costs is reviewed through financial monitoring of the subrecipient which includes the subrecipient’s cost allocation plan and underlying documentation for associated with the allocation. For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients. As a result, the cost allocation plan for one of The Resource Group’s subrecipients was not reviewed to determine appropriateness of costs allowable or allocable to the grant and costs submitted under the allocation plan and the subrecipient did not provide alternative support to The Resource Group to determine compliance. Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023. Lastly, The Resource Group did not seek alternative documentation to support the allocated costs submitted for reimbursement as a result of not performing the financial monitoring of the subrecipient. Effect: The Resource Group did not meet the requirements of 2 CFR Subpart E for certain costs as The Resource Group did not complete their financial monitoring of the subrecipient which would have included the review of the underlying documentation to support the costs reimbursed, nor did they request alternative documentation when the financial monitoring was not completed. Questioned Costs: Ryan White Title C known questioned costs $497.14 (likely questioned costs $8,054.40) State HIV Service Grants likely questioned costs $6,808.21 Recommendation: The Resource Group should follow its policies regarding expense reimbursement grants and ensure support for costs submitted for reimbursement comply with 2 CFR Subpart E. Views of Responsible Officials: See corrective action plan.
Finding 2022-003
U.S. Department of Health and Human Services 93.918 – Ryan White Title C Passed through Health Resources and Services Administration Award Periods: April 1, 2021 to March 31, 2022, May 1, 2021 to April 30, 2022, and May 1, 2022 to April 30, 2023 Contract No. H7CHA36798-01-03, H76HA00684-22-00, and H76HA00684-23-00 Texas Department of State Health Services State HIV Service Grants Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-18-0097-00001 and HHS001022300002 Criteria: Pass-through entities are required to submit costs for reimbursement that meet the provisions of 2 CFR Subpart E. Further, under 2 CFR Section 200.303a, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: Certain costs reimbursed to a subrecipient were not properly supported by underlying documentation. Management represented the documentation for the costs is reviewed through financial monitoring of the subrecipient which includes the subrecipient’s cost allocation plan and underlying documentation for associated with the allocation. For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients. As a result, the cost allocation plan for one of The Resource Group’s subrecipients was not reviewed to determine appropriateness of costs allowable or allocable to the grant and costs submitted under the allocation plan and the subrecipient did not provide alternative support to The Resource Group to determine compliance. Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023. Lastly, The Resource Group did not seek alternative documentation to support the allocated costs submitted for reimbursement as a result of not performing the financial monitoring of the subrecipient. Effect: The Resource Group did not meet the requirements of 2 CFR Subpart E for certain costs as The Resource Group did not complete their financial monitoring of the subrecipient which would have included the review of the underlying documentation to support the costs reimbursed, nor did they request alternative documentation when the financial monitoring was not completed. Questioned Costs: Ryan White Title C known questioned costs $497.14 (likely questioned costs $8,054.40) State HIV Service Grants likely questioned costs $6,808.21 Recommendation: The Resource Group should follow its policies regarding expense reimbursement grants and ensure support for costs submitted for reimbursement comply with 2 CFR Subpart E. Views of Responsible Officials: See corrective action plan.
Finding 2022-002
U.S. Department of Housing and Urban Development 14.241 – Housing Opportunities for Persons with AIDS Passed through Texas Department of State Health Services Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-17-0195-00001 and HHS001022300003 Texas Department of State Health Services State HIV Service Grants Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-18-0097-00001 and HHS001022300002 Criteria: Pass-through entities are required to monitor subrecipients in accordance with 2 CFR Section 200.332. Further, under 2 CFR Section 200.303a, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients. Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023. Effect: As a result of not completing all financial monitoring and the turnover in Finance Director, The Resource Group is not in compliance with grant requirements. Questioned Costs: None Noted Recommendation: The Resource Group should follow its policies to perform fiscal monitoring on its subrecipients in accordance with 2 CFR Section 200.332. Views of Responsible Officials: See corrective action plan.
Finding 2022-003
U.S. Department of Health and Human Services 93.918 – Ryan White Title C Passed through Health Resources and Services Administration Award Periods: April 1, 2021 to March 31, 2022, May 1, 2021 to April 30, 2022, and May 1, 2022 to April 30, 2023 Contract No. H7CHA36798-01-03, H76HA00684-22-00, and H76HA00684-23-00 Texas Department of State Health Services State HIV Service Grants Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-18-0097-00001 and HHS001022300002 Criteria: Pass-through entities are required to submit costs for reimbursement that meet the provisions of 2 CFR Subpart E. Further, under 2 CFR Section 200.303a, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: Certain costs reimbursed to a subrecipient were not properly supported by underlying documentation. Management represented the documentation for the costs is reviewed through financial monitoring of the subrecipient which includes the subrecipient’s cost allocation plan and underlying documentation for associated with the allocation. For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients. As a result, the cost allocation plan for one of The Resource Group’s subrecipients was not reviewed to determine appropriateness of costs allowable or allocable to the grant and costs submitted under the allocation plan and the subrecipient did not provide alternative support to The Resource Group to determine compliance. Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023. Lastly, The Resource Group did not seek alternative documentation to support the allocated costs submitted for reimbursement as a result of not performing the financial monitoring of the subrecipient. Effect: The Resource Group did not meet the requirements of 2 CFR Subpart E for certain costs as The Resource Group did not complete their financial monitoring of the subrecipient which would have included the review of the underlying documentation to support the costs reimbursed, nor did they request alternative documentation when the financial monitoring was not completed. Questioned Costs: Ryan White Title C known questioned costs $497.14 (likely questioned costs $8,054.40) State HIV Service Grants likely questioned costs $6,808.21 Recommendation: The Resource Group should follow its policies regarding expense reimbursement grants and ensure support for costs submitted for reimbursement comply with 2 CFR Subpart E. Views of Responsible Officials: See corrective action plan.
Finding 2022-003
U.S. Department of Health and Human Services 93.918 – Ryan White Title C Passed through Health Resources and Services Administration Award Periods: April 1, 2021 to March 31, 2022, May 1, 2021 to April 30, 2022, and May 1, 2022 to April 30, 2023 Contract No. H7CHA36798-01-03, H76HA00684-22-00, and H76HA00684-23-00 Texas Department of State Health Services State HIV Service Grants Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023 Contract No. 537-18-0097-00001 and HHS001022300002 Criteria: Pass-through entities are required to submit costs for reimbursement that meet the provisions of 2 CFR Subpart E. Further, under 2 CFR Section 200.303a, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the award. Condition: Certain costs reimbursed to a subrecipient were not properly supported by underlying documentation. Management represented the documentation for the costs is reviewed through financial monitoring of the subrecipient which includes the subrecipient’s cost allocation plan and underlying documentation for associated with the allocation. For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients. As a result, the cost allocation plan for one of The Resource Group’s subrecipients was not reviewed to determine appropriateness of costs allowable or allocable to the grant and costs submitted under the allocation plan and the subrecipient did not provide alternative support to The Resource Group to determine compliance. Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023. Lastly, The Resource Group did not seek alternative documentation to support the allocated costs submitted for reimbursement as a result of not performing the financial monitoring of the subrecipient. Effect: The Resource Group did not meet the requirements of 2 CFR Subpart E for certain costs as The Resource Group did not complete their financial monitoring of the subrecipient which would have included the review of the underlying documentation to support the costs reimbursed, nor did they request alternative documentation when the financial monitoring was not completed. Questioned Costs: Ryan White Title C known questioned costs $497.14 (likely questioned costs $8,054.40) State HIV Service Grants likely questioned costs $6,808.21 Recommendation: The Resource Group should follow its policies regarding expense reimbursement grants and ensure support for costs submitted for reimbursement comply with 2 CFR Subpart E. Views of Responsible Officials: See corrective action plan.