Finding #2023-002 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Passed through the Texas Workforce Commission, Child Care and Development Block Grant, Child Care Business Training, Assistance Listing #: 93.575, Contract N...
Finding #2023-002 – Material Weakness and Material Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Passed through the Texas Workforce Commission, Child Care and Development Block Grant, Child Care Business Training, Assistance Listing #: 93.575, Contract Number: 2920CCQ002, Contract Year: 12/01/19 – 06/30/24. Recommendation: CFC should implement policies and procedures to ensure that any applicable credits be credited to the Federal award either as a cost reduction or cash refund, as appropriate. Planned corrective action: CFC will develop a written policy outlining clear steps for: 1) Identifying and documenting credits associated with reversed invoices. 2)Applying credits within the accounting system to reduce grant costs. 3)Issuing refunds to funding agencies when required. Grant managers and finance personnel will be trained on these new policies and procedures, with an emphasis on the importance of proper credit application for grant compliance. We will also review existing internal controls over grant management to identify and address any additional weaknesses. Additionally, we will work with TWC to resolve the reimbursement of $137,893 and ensure the appropriate credit is applied. Responsible officer: Chief Financial Officer, Alisa Ealy. Estimated completion date: September 30, 2024