Audit 324300

FY End

2024-06-30

Total Expended

$5.78M

Findings

2

Programs

3

Organization: Houston Forensic Science Center, Inc. (TX)

Year: 2024 Accepted: 2024-10-09

Auditor: Blazek & Vetterling

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
502103	2024-001	Significant Deficiency	-	I
1078545	2024-001	Significant Deficiency	-	I

ALN	Program	Spent	Major	Findings
16.741	Dna Backlog Reduction Program	$3.24M	-	0
21.027	Coronavirus State and Local Fiscal Recovery Funds	$2.32M	Yes	1
16.560	National Institute of Justice Research, Evaluation, and Development Project Grants	$216,965	-	0

Contacts

Name	Title	Type
HH7BB2H1AK13	David Leach	Auditee
7139296760	Mimi Holt	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule 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). Federal expenses include allowable expenses funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance guidelines and include both costs that are capitalized and costs that are recognized as expenses in HFSC’s financial statements in conformity with generally accepted accounting principles. HFSC uses the 10% de minimus rate for indirect costs. Because the schedule presents only a selected portion of the operations of HFSC, it is not intended to, and does not present the net position or changes in net position of HFSC. De Minimis Rate Used: Y Rate Explanation: The Auditee uses the 10% de minimus rate for indirect costs. Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule 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). Federal expenses include allowable expenses funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance guidelines and include both costs that are capitalized and costs that are recognized as expenses in HFSC’s financial statements in conformity with generally accepted accounting principles. HFSC uses the 10% de minimus rate for indirect costs. Because the schedule presents only a selected portion of the operations of HFSC, it is not intended to, and does not present the net position or changes in net position of HFSC.

Finding Details

Finding 2024-001

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal program: Department of the Treasury, Passed through City of Houston, Assistance Listing #: 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Contract Number: N/A, Contract Year: 08/22 – 12/24. Criteria: Procurement – Organizations receiving federal awards are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal laws and regulations and other contractual requirements. Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization’s policy, which for HFSC is $150,000. Condition and context: During our testing of 9 purchases subject to procurement, 1 exception was noted. We noted that public notice for the procurement of training services in excess of $150,000 in costs was not performed. Questioned costs: Unknown. Cause: HFSC’s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in HFSC not purchasing goods and services to maximize price, quality and performance. Recommendation: Re-emphasize to program personnel the procurement process and adherence to HFSC’s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding 2024-001

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal program: Department of the Treasury, Passed through City of Houston, Assistance Listing #: 21.027 – COVID-19 – Coronavirus State and Local Fiscal Recovery Funds, Contract Number: N/A, Contract Year: 08/22 – 12/24. Criteria: Procurement – Organizations receiving federal awards are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Subtitle III Procurement Standards and conform to federal laws and regulations and other contractual requirements. Uniform Guidance requires public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization’s policy, which for HFSC is $150,000. Condition and context: During our testing of 9 purchases subject to procurement, 1 exception was noted. We noted that public notice for the procurement of training services in excess of $150,000 in costs was not performed. Questioned costs: Unknown. Cause: HFSC’s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in HFSC not purchasing goods and services to maximize price, quality and performance. Recommendation: Re-emphasize to program personnel the procurement process and adherence to HFSC’s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.