Audit 370113

Information on the federal program – 16.575 – Crime Victim Assistance; U.S. Department of Justice; Texas Office of the Governor – Criminal Justice Division; Program years 2023-2024, 2024-2025 21.027 – Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Dallas County; Program years 2023-2024, 2024-2025 93.558 – Temporary Assistance for Needy Families; U.S. Department of Health and Human Services; Texas Health and Human Services Commission; Program years 2023-2024, 2024-2025 Type of Finding – Significant deficiency in internal control over compliance Criteria or specific requirement – The Uniform Guidance and TxGMS require auditees to establish and maintain internal controls to prevent or identify and correct noncompliance with direct and material compliance requirements in a timely fashion (2 CFR 200.303), specifically controls over: Activities Allowed/Allowable Cost (2 CFR 400); Cash Management (2 CFR 305); Reporting (2 CFR 328-330). Condition – The Family Place was unable to provide evidence supporting a review of: Purchase order, invoice, time card, financial report, and performance reports having occurred prior to submission or drawdown. Cause – With turnover and position vacancies, supporting documentation was not available to support evidence of a prior review. Effect or potential effect – Costs may be charged to the grant improperly or inaccurate reports may be submitted to the granting agencies. Questioned costs – None Context – Allowable Costs: Out of a population of 5,120 transactions, a sample of 126 was selected noting 19 did not have evidence of approval of timecards, invoices, or purchase orders prior to drawdown. Cash Management: Out of a population of 28 transactions, a sample of 6 drawdowns was selected noting 6 did not have evidence of approval of drawdowns prior to submission. Reporting: Out of a population of 45 financial and performance reports, a sample of 10 drawdowns was selected noting 10 did not have evidence of approval of drawdowns prior to submission. Identification as a repeat finding, if applicable – Not applicable Recommendation – We recommend management ensure sufficient staffing and oversight to abide by internal processes and procedures which require prior approval of expenditures and reports prior to drawdown or submission. Views of responsible officials and planned corrective actions – See accompanying corrective action plan.

Information on the federal program – 21.027 – Coronavirus State and Local Fiscal Recovery Funds; U.S. Department of Treasury; Dallas County; Program years 2023-2024, 2024-2025 16.575 – Crime Victim Assistance; U.S. Department of Justice; Texas Office of the Governor – Criminal Justice Division; Program years 2023-2024, 2024-2025 Type of Finding – Significant deficiency in internal control over compliance and other instance of noncompliance Criteria or specific requirement – The Uniform Guidance requires auditees to maintain internal controls to prevent or identify and correct noncompliance with direct and material compliance requirements in a timely fashion, specifically in regard to Procurement (2 CFR 200.320) and Suspension and Debarment (2 CFR 200.214). Condition – The Family Place was unable to provide evidence supporting procurement for a particular vendor, as well as evidence supporting verification of a lessor not having been suspended or debarred occurred during the year. Cause – The auditee's controls did not properly identify necessary procurement and suspension and debarment processes to undertake as required by policy and Uniform Guidance. Effect or potential effect – Procurement did not occur for one vendor relationship selected. Evidence of verification of vendor status of one lessor selected was not available. Questioned costs – $10,837 (ALN 21.027) Context – Procurement: Of three covered procurement transactions identified for ALN 21.027, 100% were selected for testing, the total of which was $58,517. One transaction did not have documented procurement procedures having taken place. The total of the transaction resulting in questioned costs was $10,837. Suspension and Debarment: Of two lessors with expenditures greater than $25,000 for ALN 16.575, one was selected for testing of suspension and debarment. While the lessor was not listed as having been suspended or debarred on SAM.gov, evidence of review occurring was not available. Identification as a repeat finding, if applicable – Not applicable Recommendation – We recommend management review all contracts with vendors and review the procurement policy to ensure compliance with the procurement and suspension and debarment standards within their policy and the Uniform Guidance. Views of responsible officials and planned corrective actions – See accompanying corrective action plan.

Information on the federal program – 16.575 – Crime Victim Assistance; U.S. Department of Justice; Texas Office of the Governor – Criminal Justice Division; Program years 2023-2024, 2024-2025 Type of Finding – Other instance of noncompliance Criteria or specific requirement - The Uniform Guidance requires auditees to maintain internal controls to prevent or identify and correct noncompliance with direct and material compliance requirements in a timely fashion, specifically in regard to Reporting (2CFR 200.320). Condition – The Family Place was unable to provide original financial records used to prepare the financial reports submitted. The general ledger for the program did not agree to the financial reports submitted for the corresponding period. Cause – The auditee's controls did not properly retain documentation evidencing accurate financial report submissions. Refer to finding 2024-002. Effect or potential effect – The financial reports submitted for all four quarters of the 2023-2024 program year were unable to be traced back to the general ledger and there was no support maintained for what was originally submitted. Questioned costs – None noted. Context – Of a population of four financial reports submitted during the year, four were selected for testing. Total expenditures recorded in the general ledger for each period did not agree to the financial report. Identification as a repeat finding, if applicable – Not applicable Recommendation – We recommend management implement internal controls to ensure financial reports are submitted accurately, with supporting documentation retained. Views of responsible officials and planned corrective actions – See accompanying corrective action plan.