Audit 36769

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: Department of Agriculture Assisting Listing: 10.558 ? Child and Adult Care Food Program Direct Federal Funding Contract Number: 02946 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Department of Housing and Urban Development Assistance Listing #: 14.218 ? COVID-19 Community Development Block Grants/Entitlement Grants ? CDBG ? Entitlement Grants Cluster Passed through Workforce Solutions Capital Area Board of Directors Contract Number: CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the City of Houston Contract Number: 4600016329 Contract Year: 11/15/20 ? 10/31/22 Passed through Harris County Contract Number: B-20UW-48-0002 Contract Year: 03/01/22 ? 09/30/22 Department of Treasury Assistance Listing #: 21.023 ? Emergency Rental Assistance Program Passed through Harris County Contract Number: N/A Contract Year: 06/08/21 ? 12/31/22 Passed through Paso Del Norte Contract Number: N/A Contract Years: 12/01/21 ? 07/31/22 and 04/12/21 ? 12/31/22 Passed through City of Houston Contract Number: 4600016521 Contract Year: 02/12/21 ? 06/30/22 Department of Veterans Affairs Assistance Listing #: 64.033 ? VA Supportive Services for Veteran Families Program Direct Federal Funding Contract Years: 04/01/20 ? 09/30/22; 10/01/21 ? 09/30/23; 10/01/21 ? 09/30/22; 09/01/21 ? 09/30/23 Contract Numbers: 19-TX-290-21; 19-TX-290-22; 19-TX-290-HL; 19-TX-290SS Department of Education Assistance Listing #: 84.425D ? COVID-19 Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21521001101853 Contract Year: 06/17/21 ? 09/30/22 Assistance Listing #: 84.425U ? Education Stabilization Fund Passed through the Texas Education Agency Contract Number: 21528001101853 and 21528042101853 Contract Years: 06/21/21 ? 09/30/23 and 10/20/21 ? 08/31/24 Department of Health and Human Services Assistance Listing: 93.575 ? Child Care and Development Block Grant ? CCDF Cluster Passed through Houston-Galveston Area Council Contract Numbers: 302-22; 302-23; 302-23; 105-22; 105-23 Contract Years: 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23; 10/01/22 ? 03/31/23; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Workforce Solutions Capital Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS ? 4-22 and NCIWC CCS ? 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/21 ? 09/30/23 Assistance Listing #: 93.596 ? Child Care Mandatory and Matching Funds of the Child Care and Development Fund Passed through the Coastal Bend Workforce Development Board Contract Numbers: 2021-22 BakerRipley and 2022-23 BakerRipley Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through the East Texas Workforce Development Board Contract Numbers: BR-CCS-PY21-01 and BR-CCS-PY22-01 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed Workforce Solutions Capital Area Board of Directors Contract Numbers: CCS 2019-2024 and CCS 2019-2024 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Houston-Galveston Area Council Contract Numbers: 302-22 and 302-23 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Passed through Rural Capital Area Workforce Development Board, Inc. Contract Numbers: NCIWC CCS 4-22 and NCIWC CCS 5-2023 Contract Years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 State Programs Texas Education Agency-Foundation School Program 302-22 and 302-23 Workforce Operations and Administrative ? Childcare DFPS 302-22 and 302-23 DFPS Relative/Other Caregiver Kinship 302-22 and 302-23 DFPS General Protective In Home 302-22 and 302-23 DFPS Foster Care ? Title IV-E 302-22 and 302-23 DFPS Foster Care ? Title IV-B 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Relative/Other Caregiver Kinship 2021-22 BakerRipley and 2022-23 BakerRipley DFPS General Protective In Home 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Foster Care ? Title IV-E 2021-22 BakerRipley and 2022-23 BakerRipley DFPS Childcare ? Title IV-B NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Relative/Other Caregiver Kinship NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS General Protective In Home NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Foster Care ? Title IV-E NCIWC CCS 4-22 and NCIWC CCS 5-23 DFPS Childcare ? Title IV-B BR-CCS-PY21-01 and BR-CCS-PY22-01 Management and Operations BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Relative/Other Caregiver Kinship BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS General Protective In Home BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Foster Care ? Title IV-E BR-CCS-PY21-01 and BR-CCS-PY22-01 DFPS Childcare ? Title IV-B CCS 2019-2024 DFPS Relative/Other Caregiver Kinship CCS 2019-2024 DFPS General Protective In Home CCS 2019-2024 DFPS Foster Care ? Title IV-E CCS 2019-2024 DFPS Childcare ? Title IV-B Criteria: Procurement ? Nonprofit organizations are required to conduct procurement transactions in a manner providing full and open competition consistent with standards prescribed in Uniform Guidance, Procurement Standards, Texas Grant Management Standards (TxGMS), and the Texas Education Code sec 12.1053 and conform to federal and state laws and regulations and other contractual requirements. Uniform Guidance, TxGMS, and the Texas Education Code require public notice for proposal requests for purchases over the Simplified Acquisition Threshold, as defined by the nonprofit organization?s policy, which is $250,000 for BakerRipley. Condition and context: During our testing of 25 transactions requiring procurement, 1 exception was noted for temporary staffing services in excess of $250,000 where sealed bid or competitive proposal procedures were not utilized. These services were charged to the Texas Education Agency-Foundation School Program. Questioned costs: Unknown Cause: BakerRipley?s personnel did not follow its procurement policies. Effect: Failure to follow established procurement policies may result in BakerRipley purchasing goods or services for more than would be necessary if required competitive procurement procedures had been followed. Recommendation: Re-emphasize to program personnel the procurement process and adherence to BakerRipley?s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.