FAC Explorer

Audit 380132

FY End
2025-06-30
Total Expended
$2.06M
Findings
1
Programs
1
Organization: Phoenix Houses of Texas, Inc. (TX)
Year: 2025 Accepted: 2026-01-08
Auditor: BLAZEK & VETTERLING

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1168334 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $2.06M Yes 1

Contacts

Name Title Type
JYCVADDAUED5 Anunoy Mou Auditee
2149991044 Kay Walther Auditor
No contacts on file

Notes to SEFA

Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Phoenix Houses of Texas’ financial statements in conformity with generally accepted accounting principles. Phoenix Houses of Texas has not elected to use the 10% de minimis cost rate for indirect costs, but uses its approved indirect cost rate from the U. S. Department of Health and Human Services. Phoenix Houses of Texas does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Phoenix Houses of Texas, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Phoenix Houses of Texas.

Finding Details

Finding 2025-002
Finding #2025-002 – Significant Deficiency and Other Noncompliance – Reporting. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.959, Passed through Texas Health and Human Services Commission, All contracts, Contract years: 09/01/23 – 08/31/24 and 09/01/24 – 08/31/25. Criteria: Management is responsible for establishing internal controls for contract compliance for reporting in accordance with the Uniform Guidance and requirements in the pass-thru agency grant contract. Condition and context: In our testing of a sample of monthly billings and quarterly reports from throughout the fiscal year, we noted that reports were not being submitted within the required timelines for several reporting periods. Management communicated their delays to Texas Health and Human Services Commission (THHS), and their plan to rectify the delays. Phoenix Houses of Texas were able to file all delayed quarterly reports and monthly billings prior to June 30, 2025. THHS has approved all the delayed monthly billings and quarterly reports. Cause and effect: Phoenix Houses was awarded a new 5-year grant agreement in July 2024 with an effective date of September 1, 2024 from the Texas Health and Human Services Commission to support prevention programming in Dallas, Austin, and Houston. The discontinuation of residential treatment services and exclusive focus on new prevention service grants necessitated organizational restructuring and related changes in personnel. The accounting system also required updates to enable proper budgeting, accounting and reporting for the new grants. Late reporting may result in delayed management decision-making, potential non-compliance with THHS reporting timelines and impacts on grant reimbursement collections. Recommendation: Re-emphasize internal procedures for timely grant billing and reporting to comply with grant contracts. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.