Audit 37372

FY End
2022-09-30
Total Expended
$14.08M
Findings
10
Programs
12
Year: 2022 Accepted: 2023-06-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
39704 2022-002 Significant Deficiency - I
39705 2022-002 Significant Deficiency - I
39706 2022-002 Significant Deficiency - I
39707 2022-002 Significant Deficiency - I
39708 2022-002 Significant Deficiency - I
616146 2022-002 Significant Deficiency - I
616147 2022-002 Significant Deficiency - I
616148 2022-002 Significant Deficiency - I
616149 2022-002 Significant Deficiency - I
616150 2022-002 Significant Deficiency - I

Contacts

Name Title Type
V8RSQT8KGHL8 Elizabeth Sifuentes Auditee
8304867500 Ruben Martinez Auditor
No contacts on file

Notes to SEFA

Title: Note 5 Accounting Policies: 1. The Board utilizes special revenue funds to account for its federal and state awards.Special Revenue Funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of the specified project periods. De Minimis Rate Used: N Rate Explanation: 4. The Board did not elect to use the 10% de minimis indirect cost rate provided by the Uniform Guidance. Please see Note 5 on page 69 of the Notes on the Schedule of Expenditures of Federal and State Awards in the Workforce Solutions Middle Rio Grande Annual Financial and Compliance Report for the year ended September 30, 2022.
Title: Note 2 Accounting Policies: 1. The Board utilizes special revenue funds to account for its federal and state awards.Special Revenue Funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of the specified project periods. De Minimis Rate Used: N Rate Explanation: 4. The Board did not elect to use the 10% de minimis indirect cost rate provided by the Uniform Guidance. 2. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources focus. All federal and state grant funds were accounted for in the Special Revenue Funds, a component of the Governmental Fund type. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current position.The modified accrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable.Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.
Title: Note 3 Accounting Policies: 1. The Board utilizes special revenue funds to account for its federal and state awards.Special Revenue Funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally, unused balances are returned to the grantor at the close of the specified project periods. De Minimis Rate Used: N Rate Explanation: 4. The Board did not elect to use the 10% de minimis indirect cost rate provided by the Uniform Guidance. 3. All WSMRG pass-through to subrecipients grants are passed through to the Middle Rio Grande Development Council (fiscal agent).

Finding Details

Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.
Finding 2022-002 ? Procurement Type of Finding: Significant Deficiency/Non-Compliance Assistance Listing Number: 93.575 (Child Care Quality Improvement) Criteria: Uniform Guidance ECFR ?200.320 Methods of procurement to be followed, requires price or rate quotations be obtained from an adequate number of qualified sources, as determined by the non-federal entity, for the acquisition of goods or services greater than the micro-purchase threshold of $50,000 but less than the simplified acquisition threshold of $250,000. The WSMRG?s procurement policies in effect April 2022 contain similar requirements for purchases between $25,000 and $250,000. Additionally, TWC Financial Manual for Grants and Contracts (FMGC) Supplement on procurement contains similar requirements and additional guidance including purchases made through purchase Coops. Condition: The Board paid $89,469 to a vendor for educational curriculum learning materials to be used by the various child care providers. The purchase did not comply with the above-mentioned regulations/policies. As noted below: ? The Board did not utilize its fiscal agent to make the procurement but instead purchased the materials directly from the vendor. ? No written price quotes were obtained from other vendors for similar curriculum materials. ? Purchasing documentation provided referenced a BuyBoard contract. However, the purchase order was not processed through the BuyBoard as required. ? The vendor charged shipping costs of 15% of the cost of the materials. $11,670 of the total amount paid were shipping charges. These charges appear unreasonable in that the vendor charges 10% to Texas clients as per documentation submitted by the vendor to BuyBoard. ? We noted that the same products purchased appear to have been available through Amazon at lower prices and at zero shipping costs. ? Lastly, our review of the procurement noted some inconsistencies with FMGC regulations. Effect: The primary effect of the condition was that the procurement was not competitively procured and the best possible price may not have been obtained. Cause: Board established policies and internal control were not adhered to at the various stages of the procurement process. Recommendation: We recommend the Board review its current policies over procurement. Staff should be required to utilize the systems and policies in existence. The Board should monitor compliance with policies and internal control to ensure compliance. Additionally, staff responsible of the procurement function should obtain training and education on an annual basis.