FAC Explorer

Audit 45789

FY End
2022-12-31
Total Expended
$8.62M
Findings
4
Programs
2
Organization: Collaborative for Children (TX)
Year: 2022 Accepted: 2023-07-24
Auditor: Blazek & Vetterling

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47832 2022-001 Significant Deficiency Yes N
47833 2022-001 Significant Deficiency Yes N
624274 2022-001 Significant Deficiency Yes N
624275 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
93.575 Child Care and Development Block Grant $5.74M Yes 1
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $105,801 - 0

Contacts

Name Title Type
RYW5NNMWBVM8 Alisa Ealy Auditee
7136001140 Erica Stafford Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 HOUSTON-GALVESTON AREA COUNCIL Accounting Policies: Basis of presentation The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules 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) and the Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards, and include costs that are recognized as expenses in CFCs financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing CFCs indirect cost rate as approved by the Houston-Galveston Area Council. CFC has elected not to use the 10% de minimus rate.Because the schedules present only a selected portion of the operations of CFC, they are not intended to and do not present the financial position, changes in net assets, or cash flows of CFC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The source of funding for certain contracts (#1 on Schedule of Expenditures of Federal Awards) that are passed through to CFC from the Houston-Galveston Area Council cannot be separated to specifically identify the individual funding sources because of commingled assistance from different levels of government. These funds are from multiple federal agencies and the State of Texas. CFC has reported total expenditures from these commingled funds on the Schedule of Expenditures of Federal Awards.
Title: NOTE 3 TEXAS DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES Accounting Policies: Basis of presentation The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules 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) and the Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards, and include costs that are recognized as expenses in CFCs financial statements in conformity with generally accepted accounting principles. Indirect costs are reported utilizing CFCs indirect cost rate as approved by the Houston-Galveston Area Council. CFC has elected not to use the 10% de minimus rate.Because the schedules present only a selected portion of the operations of CFC, they are not intended to and do not present the financial position, changes in net assets, or cash flows of CFC. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Funding from the Texas Department of Family and Protective Services for contract #5 on the Schedule of Expenditures of Federal Awards and contract #S2 on the Schedule of Expenditures of State Awards is both federal and state in nature. CFC has reported total expenditures from these commingled funds on the Schedule of Expenditures of Federal Awards and on the Schedule of Expenditures of State Awards proportionately based on the contract award amounts.

Finding Details

Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Health and Human Services Passed through Houston-Galveston Area Council Child Care and Development Block Grant/Child Care Mandatory and Matching Funds of the Child Care and Development Fund Assistance Listing #: 93.575/93.596 Contract Numbers: 301-22, 301-23 Contract Years: 10/01/21 ? 09/30/22, 10/01/22 ? 12/31/22 Criteria: Special Tests and Provisions ? CFC?s contract with Houston-Galveston Area Council requires that any equipment or real property purchased with grant funds with an acquisition cost of $1,500 or more be recorded, described, tagged, and monitored as to condition and disposition. Additionally, no less than once a year, a physical inventory of these items is to be conducted. Condition and context: During the audit, we noted that the most recent inventory list was dated in 2020 and that no physical inventory was performed in 2021 or in 2022 in accordance with CFC?s written policies and procedures. This finding is a repeat of prior year finding #2021-005. Cause: CFC is not adhering to its written fixed asset and inventory policies. Effect: Failure to adequately establish and maintain effective internal controls over inventory results in being out of compliance with contract requirements. Recommendation: Re-emphasize CFC?s policies and procedures related to equipment and real property purchased under the contracts. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Health and Human Services Passed through Houston-Galveston Area Council Child Care and Development Block Grant/Child Care Mandatory and Matching Funds of the Child Care and Development Fund Assistance Listing #: 93.575/93.596 Contract Numbers: 301-22, 301-23 Contract Years: 10/01/21 ? 09/30/22, 10/01/22 ? 12/31/22 Criteria: Special Tests and Provisions ? CFC?s contract with Houston-Galveston Area Council requires that any equipment or real property purchased with grant funds with an acquisition cost of $1,500 or more be recorded, described, tagged, and monitored as to condition and disposition. Additionally, no less than once a year, a physical inventory of these items is to be conducted. Condition and context: During the audit, we noted that the most recent inventory list was dated in 2020 and that no physical inventory was performed in 2021 or in 2022 in accordance with CFC?s written policies and procedures. This finding is a repeat of prior year finding #2021-005. Cause: CFC is not adhering to its written fixed asset and inventory policies. Effect: Failure to adequately establish and maintain effective internal controls over inventory results in being out of compliance with contract requirements. Recommendation: Re-emphasize CFC?s policies and procedures related to equipment and real property purchased under the contracts. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Health and Human Services Passed through Houston-Galveston Area Council Child Care and Development Block Grant/Child Care Mandatory and Matching Funds of the Child Care and Development Fund Assistance Listing #: 93.575/93.596 Contract Numbers: 301-22, 301-23 Contract Years: 10/01/21 ? 09/30/22, 10/01/22 ? 12/31/22 Criteria: Special Tests and Provisions ? CFC?s contract with Houston-Galveston Area Council requires that any equipment or real property purchased with grant funds with an acquisition cost of $1,500 or more be recorded, described, tagged, and monitored as to condition and disposition. Additionally, no less than once a year, a physical inventory of these items is to be conducted. Condition and context: During the audit, we noted that the most recent inventory list was dated in 2020 and that no physical inventory was performed in 2021 or in 2022 in accordance with CFC?s written policies and procedures. This finding is a repeat of prior year finding #2021-005. Cause: CFC is not adhering to its written fixed asset and inventory policies. Effect: Failure to adequately establish and maintain effective internal controls over inventory results in being out of compliance with contract requirements. Recommendation: Re-emphasize CFC?s policies and procedures related to equipment and real property purchased under the contracts. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Health and Human Services Passed through Houston-Galveston Area Council Child Care and Development Block Grant/Child Care Mandatory and Matching Funds of the Child Care and Development Fund Assistance Listing #: 93.575/93.596 Contract Numbers: 301-22, 301-23 Contract Years: 10/01/21 ? 09/30/22, 10/01/22 ? 12/31/22 Criteria: Special Tests and Provisions ? CFC?s contract with Houston-Galveston Area Council requires that any equipment or real property purchased with grant funds with an acquisition cost of $1,500 or more be recorded, described, tagged, and monitored as to condition and disposition. Additionally, no less than once a year, a physical inventory of these items is to be conducted. Condition and context: During the audit, we noted that the most recent inventory list was dated in 2020 and that no physical inventory was performed in 2021 or in 2022 in accordance with CFC?s written policies and procedures. This finding is a repeat of prior year finding #2021-005. Cause: CFC is not adhering to its written fixed asset and inventory policies. Effect: Failure to adequately establish and maintain effective internal controls over inventory results in being out of compliance with contract requirements. Recommendation: Re-emphasize CFC?s policies and procedures related to equipment and real property purchased under the contracts. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.