Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-001 ? Significant Deficiency Applicable federal program: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #?s: 3521203; 4219601; 4219602 Contract years: 10/01/21 ? 09/30/22; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Criteria: Allowable Costs ? The Uniform Guidance ?200.430 and the Texas Grant Management Standards require that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting policies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Additionally, the Uniform Guidance requires costs to be necessary and reasonable for the performance of the federal award. Condition and context: During our testing of 25 payroll transactions, we noted the following: ? 9 transactions in March 2022 where allocations were not properly calculated resulting in a grant being undercharged. ? 1 transaction in March 2022 where an employee?s $280 bonus was charged to the grant, which is unallowable. Repeat of finding #2021-001. Cause: The errors in the payroll allocations and charging the bonus to a grant occurred due to failure to follow established policies and procedures. Effect: Failure to follow established internal control policies and procedures which requires reviews of payroll, including adherence to allocations methodology, resulted in errors in grant billings and could result in unallowable costs being charged to the grants, or vice versa. Recommendation: Emphasize adherence to established policies and procedures to ensure payroll, including allocations methodology, are properly followed and reviewed. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-002 ? Significant Deficiency Applicable federal programs: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #: 3521203 Contract year: 10/01/21 ? 09/30/22 Crime Victim Assistance Contract #?s: 4219601 and 4219602 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Criteria: Eligibility ? HAWC is responsible for having internal control procedures over the review of client files to ensure the completeness of required documents in the client files and accuracy of information in the client database. Condition and context: HAWC?s policies and procedures for verifying the completeness of eligibility documentation includes the completion of a client file review with an internal reviewer?s signature evidencing their review. In our testing of a sample of 40 client files, we noted two client files for services provided in April and July 2022 that did not have the signature of an internal reviewer. We noted that the eligibility files did include the required documentation. Cause: The finding occurred as a result of HAWC not following its internal control procedures requiring review of documentation to ensure the client files are complete with eligibility documentation and the information entered in the client database is accurate. Effect: Failure to follow internal control procedures could result in incomplete client files, errors in the client database, and ineligible persons served. Recommendation: Provide additional staff training to ensure that HAWC?s internal control procedures that require review of client files are followed. Views of responsible officials and planned corrective action: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-001 ? Significant Deficiency Applicable federal program: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #?s: 3521203; 4219601; 4219602 Contract years: 10/01/21 ? 09/30/22; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Criteria: Allowable Costs ? The Uniform Guidance ?200.430 and the Texas Grant Management Standards require that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting policies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Additionally, the Uniform Guidance requires costs to be necessary and reasonable for the performance of the federal award. Condition and context: During our testing of 25 payroll transactions, we noted the following: ? 9 transactions in March 2022 where allocations were not properly calculated resulting in a grant being undercharged. ? 1 transaction in March 2022 where an employee?s $280 bonus was charged to the grant, which is unallowable. Repeat of finding #2021-001. Cause: The errors in the payroll allocations and charging the bonus to a grant occurred due to failure to follow established policies and procedures. Effect: Failure to follow established internal control policies and procedures which requires reviews of payroll, including adherence to allocations methodology, resulted in errors in grant billings and could result in unallowable costs being charged to the grants, or vice versa. Recommendation: Emphasize adherence to established policies and procedures to ensure payroll, including allocations methodology, are properly followed and reviewed. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-002 ? Significant Deficiency Applicable federal programs: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #: 3521203 Contract year: 10/01/21 ? 09/30/22 Crime Victim Assistance Contract #?s: 4219601 and 4219602 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Criteria: Eligibility ? HAWC is responsible for having internal control procedures over the review of client files to ensure the completeness of required documents in the client files and accuracy of information in the client database. Condition and context: HAWC?s policies and procedures for verifying the completeness of eligibility documentation includes the completion of a client file review with an internal reviewer?s signature evidencing their review. In our testing of a sample of 40 client files, we noted two client files for services provided in April and July 2022 that did not have the signature of an internal reviewer. We noted that the eligibility files did include the required documentation. Cause: The finding occurred as a result of HAWC not following its internal control procedures requiring review of documentation to ensure the client files are complete with eligibility documentation and the information entered in the client database is accurate. Effect: Failure to follow internal control procedures could result in incomplete client files, errors in the client database, and ineligible persons served. Recommendation: Provide additional staff training to ensure that HAWC?s internal control procedures that require review of client files are followed. Views of responsible officials and planned corrective action: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-003 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Assistance Listing #14.231 Passed through Child Care Council of Greater Houston Emergency Solutions Grant Program Contract #: 460-001-3805 Contract years: 05/01/21 ? 03/31/22 and 04/01/22 ? 03/31/23 Assistance Listing #14.231 Passed through Harris County Community Services Department (Office of Housing and Community Development) Emergency Solutions Grant Program Contract #?s: 2021-0033g and 2022-008f Contract years: 03/01/21 ? 02/28/22 and 03/01/22 ? 02/28/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #?s: 42217000046 and 42227000044 Contract years: 11/01/21 ? 10/31/22 and 11/01/22 ? 10/31/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs COVID-19 ? Emergency Solutions Grant Program Contract #: 44207000047 Contract year: 01/14/21 ? 06/30/23 Assistance Listing #14.231 Passed through Texas Department of Housing and Community Affairs Emergency Solutions Grant Program Contract #: 20220000030 Contract year: 03/31/22 ? 03/31/24 Assistance Listing #14.267 Direct Funding Continuum of Care Program Contract #?s: TX0179L6E002013 and TX0179L6E002114 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Assistance Listing #14.267 Passed through Harris County Domestic Violence Coordinating Council Continuum of Care Program Contract #?s: TX0538D6E002106 and TX0538D6E002002 Contract years: 08/01/22 ? 07/31/23 and 08/01/21 ? 07/31/22 Applicable state program: Office of the Attorney General ? State of Texas Sexual Assault Prevention and Crisis Services Contract #?s: 2217883 and C-00112 Contract years: 09/01/21 ? 08/31/22 and 09/01/22 ? 08/31/23 Criteria: Procurement ? The Uniform Guidance ?200.318 and the Texas Grant Management Standards states that nonprofit organizations must maintain records sufficient to detail the history of procurement. The records must include the rationale for the procurement method, vendor selection or rejection, and the basis for the contracted price. Condition and context: During testing of 10 transactions requiring procurement, we identified 1 instance of expenditures greater than $10,000 had no procurement documentation evidencing a procurement was performed. Repeat of finding #2021-005. Cause: The finding occurred due to failure to follow established procurement policies and procedures. Effect: Failure to follow procurement procedures may result in HAWC purchasing goods or services for more than would be necessary if required procurement procedures had been followed. Questioned costs: Unknown Recommendation: Emphasize adherence to established policies and procedures to ensure procurement is performed according to the procurement policy, and that proper procurement documentation is maintained. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-001 ? Significant Deficiency Applicable federal program: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #?s: 3521203; 4219601; 4219602 Contract years: 10/01/21 ? 09/30/22; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Criteria: Allowable Costs ? The Uniform Guidance ?200.430 and the Texas Grant Management Standards require that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting policies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Additionally, the Uniform Guidance requires costs to be necessary and reasonable for the performance of the federal award. Condition and context: During our testing of 25 payroll transactions, we noted the following: ? 9 transactions in March 2022 where allocations were not properly calculated resulting in a grant being undercharged. ? 1 transaction in March 2022 where an employee?s $280 bonus was charged to the grant, which is unallowable. Repeat of finding #2021-001. Cause: The errors in the payroll allocations and charging the bonus to a grant occurred due to failure to follow established policies and procedures. Effect: Failure to follow established internal control policies and procedures which requires reviews of payroll, including adherence to allocations methodology, resulted in errors in grant billings and could result in unallowable costs being charged to the grants, or vice versa. Recommendation: Emphasize adherence to established policies and procedures to ensure payroll, including allocations methodology, are properly followed and reviewed. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-002 ? Significant Deficiency Applicable federal programs: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #: 3521203 Contract year: 10/01/21 ? 09/30/22 Crime Victim Assistance Contract #?s: 4219601 and 4219602 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Criteria: Eligibility ? HAWC is responsible for having internal control procedures over the review of client files to ensure the completeness of required documents in the client files and accuracy of information in the client database. Condition and context: HAWC?s policies and procedures for verifying the completeness of eligibility documentation includes the completion of a client file review with an internal reviewer?s signature evidencing their review. In our testing of a sample of 40 client files, we noted two client files for services provided in April and July 2022 that did not have the signature of an internal reviewer. We noted that the eligibility files did include the required documentation. Cause: The finding occurred as a result of HAWC not following its internal control procedures requiring review of documentation to ensure the client files are complete with eligibility documentation and the information entered in the client database is accurate. Effect: Failure to follow internal control procedures could result in incomplete client files, errors in the client database, and ineligible persons served. Recommendation: Provide additional staff training to ensure that HAWC?s internal control procedures that require review of client files are followed. Views of responsible officials and planned corrective action: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-001 ? Significant Deficiency Applicable federal program: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #?s: 3521203; 4219601; 4219602 Contract years: 10/01/21 ? 09/30/22; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Criteria: Allowable Costs ? The Uniform Guidance ?200.430 and the Texas Grant Management Standards require that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting policies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Additionally, the Uniform Guidance requires costs to be necessary and reasonable for the performance of the federal award. Condition and context: During our testing of 25 payroll transactions, we noted the following: ? 9 transactions in March 2022 where allocations were not properly calculated resulting in a grant being undercharged. ? 1 transaction in March 2022 where an employee?s $280 bonus was charged to the grant, which is unallowable. Repeat of finding #2021-001. Cause: The errors in the payroll allocations and charging the bonus to a grant occurred due to failure to follow established policies and procedures. Effect: Failure to follow established internal control policies and procedures which requires reviews of payroll, including adherence to allocations methodology, resulted in errors in grant billings and could result in unallowable costs being charged to the grants, or vice versa. Recommendation: Emphasize adherence to established policies and procedures to ensure payroll, including allocations methodology, are properly followed and reviewed. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding #2022-002 ? Significant Deficiency Applicable federal programs: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #: 3521203 Contract year: 10/01/21 ? 09/30/22 Crime Victim Assistance Contract #?s: 4219601 and 4219602 Contract years: 10/01/21 ? 09/30/22 and 10/01/22 ? 09/30/23 Criteria: Eligibility ? HAWC is responsible for having internal control procedures over the review of client files to ensure the completeness of required documents in the client files and accuracy of information in the client database. Condition and context: HAWC?s policies and procedures for verifying the completeness of eligibility documentation includes the completion of a client file review with an internal reviewer?s signature evidencing their review. In our testing of a sample of 40 client files, we noted two client files for services provided in April and July 2022 that did not have the signature of an internal reviewer. We noted that the eligibility files did include the required documentation. Cause: The finding occurred as a result of HAWC not following its internal control procedures requiring review of documentation to ensure the client files are complete with eligibility documentation and the information entered in the client database is accurate. Effect: Failure to follow internal control procedures could result in incomplete client files, errors in the client database, and ineligible persons served. Recommendation: Provide additional staff training to ensure that HAWC?s internal control procedures that require review of client files are followed. Views of responsible officials and planned corrective action: Management agrees with the finding. See Corrective Action Plan.