Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and
Data Collection Form –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – The Uniform Guidance requires the reporting package and data collection form to
be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are
received from auditors or nine months after the end of the audit period, unless longer period
of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal
Clearinghouse considers the submission requirement complete when it has received the
electronic submission of both the data collection form and the reporting package.
Condition – The Federal reporting deadline for the Single Audit Reporting Package was
March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit
Reporting Package on time.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – The late submission of the reporting package affects all Federal
programs administered by Human Relations Are Files, Inc. This finding is a material
weakness in internal control over compliance and noncompliance with the Uniform
Guidance. Untimely reports can prevent the Organization’s funders to make appropriate
decisions regarding the Organization’s programs.
Questioned Costs – None.
Context – The Schedule of Expenditures of Federal Awards was not completed in a timely
manner causing the audit to be delayed and late.
Recommendation – Management should make the proper changes to its finance functions to
ensure it has sufficient staffing resources to keep its accounting records up to date for its
federal programs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and
Data Collection Form –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – The Uniform Guidance requires the reporting package and data collection form to
be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are
received from auditors or nine months after the end of the audit period, unless longer period
of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal
Clearinghouse considers the submission requirement complete when it has received the
electronic submission of both the data collection form and the reporting package.
Condition – The Federal reporting deadline for the Single Audit Reporting Package was
March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit
Reporting Package on time.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – The late submission of the reporting package affects all Federal
programs administered by Human Relations Are Files, Inc. This finding is a material
weakness in internal control over compliance and noncompliance with the Uniform
Guidance. Untimely reports can prevent the Organization’s funders to make appropriate
decisions regarding the Organization’s programs.
Questioned Costs – None.
Context – The Schedule of Expenditures of Federal Awards was not completed in a timely
manner causing the audit to be delayed and late.
Recommendation – Management should make the proper changes to its finance functions to
ensure it has sufficient staffing resources to keep its accounting records up to date for its
federal programs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and
Data Collection Form –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – The Uniform Guidance requires the reporting package and data collection form to
be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are
received from auditors or nine months after the end of the audit period, unless longer period
of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal
Clearinghouse considers the submission requirement complete when it has received the
electronic submission of both the data collection form and the reporting package.
Condition – The Federal reporting deadline for the Single Audit Reporting Package was
March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit
Reporting Package on time.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – The late submission of the reporting package affects all Federal
programs administered by Human Relations Are Files, Inc. This finding is a material
weakness in internal control over compliance and noncompliance with the Uniform
Guidance. Untimely reports can prevent the Organization’s funders to make appropriate
decisions regarding the Organization’s programs.
Questioned Costs – None.
Context – The Schedule of Expenditures of Federal Awards was not completed in a timely
manner causing the audit to be delayed and late.
Recommendation – Management should make the proper changes to its finance functions to
ensure it has sufficient staffing resources to keep its accounting records up to date for its
federal programs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-003 – Material Weakness – Compliance Requirement Related to Activities
Allowed and Allowable Costs –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – All expenditures charged to federal grants should be properly reviewed and
approved, prior to submission to granting agencies, and paid with no excess or duplicate
payments.
Condition – There were multiple instances of transactions charged to grant programs either
as duplicate transactions, incorrect amounts revised after date of submission to granting
agency, or improperly excluded from submissions. Additionally, there were transactions that
did not have sufficient appropriate audit evidence including but not limited to lack of
Organizational policy, missing invoices, etc. to support such transactions as eligible
expenses. These charges were not identified and corrected by the Organization prior to fiscal
year-end.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – Improper expenses were charged and reimbursed under the grant
program.
Questioned Costs – Found costs include $189 and $600. The remaining balance is unknown
due to significant posting closing adjustments as well as unclear documentation of such
adjustments.
Context – We identified these issues when reconciling the expenditure detail to the Schedule
of Federal Awards. During such reconciliation, multiple adjustments to the Schedule of
Federal Awards were required. Additionally, we tested 20 payroll and 20 non-payroll cash
disbursements charged to the grants and identified expenditures not appropriately supported.
Recommendation – The Organization should correct the excess expense recorded and
ensure controls are in place to ensure incorrect reporting is not possible in the future. All
expenditures in excess of a specific dollar threshold should require receipts and specific
reason for allowable costs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-003 – Material Weakness – Compliance Requirement Related to Activities
Allowed and Allowable Costs –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – All expenditures charged to federal grants should be properly reviewed and
approved, prior to submission to granting agencies, and paid with no excess or duplicate
payments.
Condition – There were multiple instances of transactions charged to grant programs either
as duplicate transactions, incorrect amounts revised after date of submission to granting
agency, or improperly excluded from submissions. Additionally, there were transactions that
did not have sufficient appropriate audit evidence including but not limited to lack of
Organizational policy, missing invoices, etc. to support such transactions as eligible
expenses. These charges were not identified and corrected by the Organization prior to fiscal
year-end.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – Improper expenses were charged and reimbursed under the grant
program.
Questioned Costs – Found costs include $189 and $600. The remaining balance is unknown
due to significant posting closing adjustments as well as unclear documentation of such
adjustments.
Context – We identified these issues when reconciling the expenditure detail to the Schedule
of Federal Awards. During such reconciliation, multiple adjustments to the Schedule of
Federal Awards were required. Additionally, we tested 20 payroll and 20 non-payroll cash
disbursements charged to the grants and identified expenditures not appropriately supported.
Recommendation – The Organization should correct the excess expense recorded and
ensure controls are in place to ensure incorrect reporting is not possible in the future. All
expenditures in excess of a specific dollar threshold should require receipts and specific
reason for allowable costs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-003 – Material Weakness – Compliance Requirement Related to Activities
Allowed and Allowable Costs –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – All expenditures charged to federal grants should be properly reviewed and
approved, prior to submission to granting agencies, and paid with no excess or duplicate
payments.
Condition – There were multiple instances of transactions charged to grant programs either
as duplicate transactions, incorrect amounts revised after date of submission to granting
agency, or improperly excluded from submissions. Additionally, there were transactions that
did not have sufficient appropriate audit evidence including but not limited to lack of
Organizational policy, missing invoices, etc. to support such transactions as eligible
expenses. These charges were not identified and corrected by the Organization prior to fiscal
year-end.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – Improper expenses were charged and reimbursed under the grant
program.
Questioned Costs – Found costs include $189 and $600. The remaining balance is unknown
due to significant posting closing adjustments as well as unclear documentation of such
adjustments.
Context – We identified these issues when reconciling the expenditure detail to the Schedule
of Federal Awards. During such reconciliation, multiple adjustments to the Schedule of
Federal Awards were required. Additionally, we tested 20 payroll and 20 non-payroll cash
disbursements charged to the grants and identified expenditures not appropriately supported.
Recommendation – The Organization should correct the excess expense recorded and
ensure controls are in place to ensure incorrect reporting is not possible in the future. All
expenditures in excess of a specific dollar threshold should require receipts and specific
reason for allowable costs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and
Data Collection Form –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – The Uniform Guidance requires the reporting package and data collection form to
be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are
received from auditors or nine months after the end of the audit period, unless longer period
of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal
Clearinghouse considers the submission requirement complete when it has received the
electronic submission of both the data collection form and the reporting package.
Condition – The Federal reporting deadline for the Single Audit Reporting Package was
March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit
Reporting Package on time.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – The late submission of the reporting package affects all Federal
programs administered by Human Relations Are Files, Inc. This finding is a material
weakness in internal control over compliance and noncompliance with the Uniform
Guidance. Untimely reports can prevent the Organization’s funders to make appropriate
decisions regarding the Organization’s programs.
Questioned Costs – None.
Context – The Schedule of Expenditures of Federal Awards was not completed in a timely
manner causing the audit to be delayed and late.
Recommendation – Management should make the proper changes to its finance functions to
ensure it has sufficient staffing resources to keep its accounting records up to date for its
federal programs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and
Data Collection Form –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – The Uniform Guidance requires the reporting package and data collection form to
be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are
received from auditors or nine months after the end of the audit period, unless longer period
of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal
Clearinghouse considers the submission requirement complete when it has received the
electronic submission of both the data collection form and the reporting package.
Condition – The Federal reporting deadline for the Single Audit Reporting Package was
March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit
Reporting Package on time.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – The late submission of the reporting package affects all Federal
programs administered by Human Relations Are Files, Inc. This finding is a material
weakness in internal control over compliance and noncompliance with the Uniform
Guidance. Untimely reports can prevent the Organization’s funders to make appropriate
decisions regarding the Organization’s programs.
Questioned Costs – None.
Context – The Schedule of Expenditures of Federal Awards was not completed in a timely
manner causing the audit to be delayed and late.
Recommendation – Management should make the proper changes to its finance functions to
ensure it has sufficient staffing resources to keep its accounting records up to date for its
federal programs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-002 – Material Weakness – Late Submission of Reporting Package and
Data Collection Form –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – The Uniform Guidance requires the reporting package and data collection form to
be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are
received from auditors or nine months after the end of the audit period, unless longer period
of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal
Clearinghouse considers the submission requirement complete when it has received the
electronic submission of both the data collection form and the reporting package.
Condition – The Federal reporting deadline for the Single Audit Reporting Package was
March 31, 2024; however, Human Relations Area Files, Inc. did not issue its Single Audit
Reporting Package on time.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – The late submission of the reporting package affects all Federal
programs administered by Human Relations Are Files, Inc. This finding is a material
weakness in internal control over compliance and noncompliance with the Uniform
Guidance. Untimely reports can prevent the Organization’s funders to make appropriate
decisions regarding the Organization’s programs.
Questioned Costs – None.
Context – The Schedule of Expenditures of Federal Awards was not completed in a timely
manner causing the audit to be delayed and late.
Recommendation – Management should make the proper changes to its finance functions to
ensure it has sufficient staffing resources to keep its accounting records up to date for its
federal programs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-003 – Material Weakness – Compliance Requirement Related to Activities
Allowed and Allowable Costs –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – All expenditures charged to federal grants should be properly reviewed and
approved, prior to submission to granting agencies, and paid with no excess or duplicate
payments.
Condition – There were multiple instances of transactions charged to grant programs either
as duplicate transactions, incorrect amounts revised after date of submission to granting
agency, or improperly excluded from submissions. Additionally, there were transactions that
did not have sufficient appropriate audit evidence including but not limited to lack of
Organizational policy, missing invoices, etc. to support such transactions as eligible
expenses. These charges were not identified and corrected by the Organization prior to fiscal
year-end.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – Improper expenses were charged and reimbursed under the grant
program.
Questioned Costs – Found costs include $189 and $600. The remaining balance is unknown
due to significant posting closing adjustments as well as unclear documentation of such
adjustments.
Context – We identified these issues when reconciling the expenditure detail to the Schedule
of Federal Awards. During such reconciliation, multiple adjustments to the Schedule of
Federal Awards were required. Additionally, we tested 20 payroll and 20 non-payroll cash
disbursements charged to the grants and identified expenditures not appropriately supported.
Recommendation – The Organization should correct the excess expense recorded and
ensure controls are in place to ensure incorrect reporting is not possible in the future. All
expenditures in excess of a specific dollar threshold should require receipts and specific
reason for allowable costs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-003 – Material Weakness – Compliance Requirement Related to Activities
Allowed and Allowable Costs –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – All expenditures charged to federal grants should be properly reviewed and
approved, prior to submission to granting agencies, and paid with no excess or duplicate
payments.
Condition – There were multiple instances of transactions charged to grant programs either
as duplicate transactions, incorrect amounts revised after date of submission to granting
agency, or improperly excluded from submissions. Additionally, there were transactions that
did not have sufficient appropriate audit evidence including but not limited to lack of
Organizational policy, missing invoices, etc. to support such transactions as eligible
expenses. These charges were not identified and corrected by the Organization prior to fiscal
year-end.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – Improper expenses were charged and reimbursed under the grant
program.
Questioned Costs – Found costs include $189 and $600. The remaining balance is unknown
due to significant posting closing adjustments as well as unclear documentation of such
adjustments.
Context – We identified these issues when reconciling the expenditure detail to the Schedule
of Federal Awards. During such reconciliation, multiple adjustments to the Schedule of
Federal Awards were required. Additionally, we tested 20 payroll and 20 non-payroll cash
disbursements charged to the grants and identified expenditures not appropriately supported.
Recommendation – The Organization should correct the excess expense recorded and
ensure controls are in place to ensure incorrect reporting is not possible in the future. All
expenditures in excess of a specific dollar threshold should require receipts and specific
reason for allowable costs.
Views of Responsible Officials – See Corrective Action Plan.
Finding 2023-003 – Material Weakness – Compliance Requirement Related to Activities
Allowed and Allowable Costs –
National Science Foundation – Social, Behavioral, and Economic Sciences
(CFDA # 47.075)
Department of Defense – The University of Texas Health Science Center of
Houston pass through – Basic Scientific Research (CFDA # 12.431)
Criteria – All expenditures charged to federal grants should be properly reviewed and
approved, prior to submission to granting agencies, and paid with no excess or duplicate
payments.
Condition – There were multiple instances of transactions charged to grant programs either
as duplicate transactions, incorrect amounts revised after date of submission to granting
agency, or improperly excluded from submissions. Additionally, there were transactions that
did not have sufficient appropriate audit evidence including but not limited to lack of
Organizational policy, missing invoices, etc. to support such transactions as eligible
expenses. These charges were not identified and corrected by the Organization prior to fiscal
year-end.
Cause – Due to employee staffing constraints and lack of a higher level of supervisory or
review function in the finance and accounting department, the accounting records were not
completed in a timely manner.
Effect of Potential Effect – Improper expenses were charged and reimbursed under the grant
program.
Questioned Costs – Found costs include $189 and $600. The remaining balance is unknown
due to significant posting closing adjustments as well as unclear documentation of such
adjustments.
Context – We identified these issues when reconciling the expenditure detail to the Schedule
of Federal Awards. During such reconciliation, multiple adjustments to the Schedule of
Federal Awards were required. Additionally, we tested 20 payroll and 20 non-payroll cash
disbursements charged to the grants and identified expenditures not appropriately supported.
Recommendation – The Organization should correct the excess expense recorded and
ensure controls are in place to ensure incorrect reporting is not possible in the future. All
expenditures in excess of a specific dollar threshold should require receipts and specific
reason for allowable costs.
Views of Responsible Officials – See Corrective Action Plan.