Corrective Action Plans

Finding 383017 (2023-106)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Special Tests & Provisions Student Financial Aid Eligibility § 200.303

Corrective Action Plan: The user access has been limited to their specific job function. The university will verify user access was appropriately updated/removed. Access review procedures will be reviewed to ensure access is appropriately assigned in the future. To streamline and assure a consistent...

Corrective Action Plan: The user access has been limited to their specific job function. The university will verify user access was appropriately updated/removed. Access review procedures will be reviewed to ensure access is appropriately assigned in the future. To streamline and assure a consistent outcome regarding the approvals for security patches to be introduced to the production environment, the University will convert these normal changes to standard changes. A standard change is “A pre-authorized change that is low risk, relatively common and follows a procedure or work instruction. (ITIL v4 definition.)” Software patching and updates are standard change candidates. Not applying security patches in a timely manner introduces a greater risk to the University than processing these requests as a normal change. A standard change is pre-authorized and will address how IT is testing and/or validating whether the OS patches were successful in an available test environment prior to deployment to production. Test procedures will be documented as a requirement of the Standard Change Model. IT will document that outcome of the testing and/or validating of the OS patch as a Journal entry on the Standard Change prior to implementation. The Change Advisory Board (CAB) will review these changes/procedures on a regular basis to ensure we are in compliance. Policies, Standards and Procedures will be updated to meet any required changes. Implementation Date: January, 2025 Responsible Persons: Michael Dewey, Chief Technology Officer Amy Wilson, Director of Financial Aid and Scholarships

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Finding 383016 (2023-104)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Student Financial Aid Special Tests & Provisions

Corrective Action Plan: Lamar University has already begun making strides to improve processes to ensure Return to Title IV (R2T4) funds are being reviewed and calculated correctly as it relates to return calculations. With turnover in staffing, we have worked to identify training materials availabl...

Corrective Action Plan: Lamar University has already begun making strides to improve processes to ensure Return to Title IV (R2T4) funds are being reviewed and calculated correctly as it relates to return calculations. With turnover in staffing, we have worked to identify training materials available and schedule our FA Specialist Sr. the opportunity to attend the Return to Title IV training offered through NASFAA. Moving forward, any future staff will be required to attend this course to gain a better understanding of the process. We were provided a list of schools with unique modules for support or guidance with our processes. Once these resources and trainings are available, the Standard Operating Procedure manual will be updated to reflect process improvements. IT is working with Student Aid to review reports and streamline the data used to identify students with changes to enrollment. This will allow a quicker turnaround time for processing students’ accounts. A process has been implemented with Student Aid and the Registrar’s office to ensure that all changes to the academic calendar are reported so that adjustments can be made. This will ensure that an accurate calculation of days is being used. In addition, we have begun reviewing our current Course Program of Study process and look to implement a change. This will allow us to freeze a student’s CPOS, which will avoid a student having a change in aid eligible enrollment after the R2T4 adjustments have been made. Implementation Date: August 2024 Responsible Person: Megan Begnaud, Director of Student Aid

View Audit 296491 Questioned Costs: $1

Finding 383015 (2023-103)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Corrective Action Plan: The Student Aid office has worked with IT to automate the communications identified in the audit report. All processes are successfully running with the new system. Student Aid is also reviewing disbursement communications. Based on testing it was identified that students wer...

Corrective Action Plan: The Student Aid office has worked with IT to automate the communications identified in the audit report. All processes are successfully running with the new system. Student Aid is also reviewing disbursement communications. Based on testing it was identified that students were being notified based on the traditional student schedule, but additional disbursements for online students were being missed. We are actively working to implement disbursement communications for all parts of terms. It was identified that the Nursing Faculty Loan Program (NFLP) was initially set up in the system as a grant, which did not cause the missing promissory note to prevent disbursement. This NFLP has been corrected in the Banner system from grant to loan, which will trigger the systems set in place for disbursement to students receiving the NFLP. Implementation Date: February 2024 Responsible Person: Megan Begnaud, Director of Student Aid

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Finding 383014 (2023-102)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Student Financial Aid Reporting Significant Deficiency

Corrective Action Plan: When the office of Student Aid began work on the Fiscal Operations Report and Application to Participate (FISAP), a discrepancy in the PELL amount was identified. The SAO team requested the FISAP in October 2023, which notated that the PELL amount would need to be submitted b...

Corrective Action Plan: When the office of Student Aid began work on the Fiscal Operations Report and Application to Participate (FISAP), a discrepancy in the PELL amount was identified. The SAO team requested the FISAP in October 2023, which notated that the PELL amount would need to be submitted by the December 15th deadline. The corrections to PELL were not resolved by the December 15th deadline, so a request for extension was requested on December 15, 2023, and granted on December 20, 2023, with an updated due date of January 3, 2024.  Part II, Section E was completed with the corrected PELL amount on final submission.  FSEOG Expenditures Reporting is being reviewed by Student Aid and Student Business Services to identify the error in reporting discrepancies. Implementation Date: February 2024 Responsible Persons: Megan Begnaud, Director of Student Aid

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Finding 383013 (2023-101)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Student Financial Aid Procurement, Suspension & Debarment

Corrective Action Plan: A process with the Student Aid office exists for aid clean up that is run after Census Day for each part of term identifying students that had a variation in payouts versus packaged budget. In reviewing the 2022-2023 aid year, it appears that these reports and processes were ...

Corrective Action Plan: A process with the Student Aid office exists for aid clean up that is run after Census Day for each part of term identifying students that had a variation in payouts versus packaged budget. In reviewing the 2022-2023 aid year, it appears that these reports and processes were not being worked due to staff turnover. Working the students identified on this report is part of scheduled processes. Student Aid is working with IT to have these reports automated and scheduled out for delivery to ensure that it is received and worked in a timely manner. Implementation Date: February 2024 Responsible Person: Megan Begnaud, Director of Student Aid

View Audit 296491 Questioned Costs: $1

Finding 383009 (2023-029)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Reporting § 200.303

Corrective action plan: TDEM will utilize the federal system APEX reports for financial reports. For FFATA reporting, TDEM will work closely with the software vendor to correct deficiencies in data provided on the automated FFATA report. Additionally, TDEM will utilize the data generated directly fr...

Corrective action plan: TDEM will utilize the federal system APEX reports for financial reports. For FFATA reporting, TDEM will work closely with the software vendor to correct deficiencies in data provided on the automated FFATA report. Additionally, TDEM will utilize the data generated directly from the federal system for monitoring FFATA submissions. Implementation dates: Specific to the financial reporting – October 2023 FFATA – February 2024 Responsible persons: Division Chief – Finance – Vicki Newlin Division Chief – Business Services – Carolyn Record

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Finding 383008 (2023-004)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Allowable Costs / Cost Principles Eligibility § 200.303

Corrective action plan: Program is enhancing processes to reconcile current expenses and ensure only eligible expenses are reported on the applicable funding sources. These actions will result in accurate amounts reported on the schedule of federal award expenditures. To strengthen requirements rela...

Corrective action plan: Program is enhancing processes to reconcile current expenses and ensure only eligible expenses are reported on the applicable funding sources. These actions will result in accurate amounts reported on the schedule of federal award expenditures. To strengthen requirements related to unique disaster funding, DSHS will reevaluate all invoices on this grant to ensure they are on the proper funding source. The State Medical Operations Center Finance staff will coordinate with DSHS Financial Division to communicate FEMA updates impacting expense reimbursement. Implementation date: August 31, 2024 Responsible persons: Wayne Zwart, Disaster Finance Manager, Center for Health Emergency Preparedness and Response’; Amanda Hudson, Budget Director, Financial Division

View Audit 296491 Questioned Costs: $1

Finding 382995 (2023-016)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Allowable Costs / Cost Principles Period of Performance § 200.303 § 200.308 § 200.403

Corrective action plan: HHSC completed the correction of the rate prior to year-end close on August 25, 2023. General Ledger Cost Allocation Team will work with CFO Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials general ledger module before t...

Corrective action plan: HHSC completed the correction of the rate prior to year-end close on August 25, 2023. General Ledger Cost Allocation Team will work with CFO Operations Support to develop a query to identify journal transactions that post in the CAPPS Financials general ledger module before the project start date. This query will be run monthly and any exceptions will be corrected. An additional review of the new fiscal year payroll projects will be performed by both Budget and the General Ledger Chartfield teams as part of annual fiscal year close coordination. Implementation date: August 31, 2024 Responsible person: Heather Nevill, Director, Fund Management

View Audit 296491 Questioned Costs: $1

Finding 382987 (2023-015)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Subrecipient Monitoring Eligibility Special Tests & Provisions § 200.303 § 200.334

Corrective action plan: In December 2021, the Texas Health and Human Services Commission (HHSC) implemented the Texas Medicaid & Healthcare Partnership (TMHP) Provider Enrollment Management System (PEMS), an automated system that is the single tool for provider enrollment, re-enrollment, revalidatio...

Corrective action plan: In December 2021, the Texas Health and Human Services Commission (HHSC) implemented the Texas Medicaid & Healthcare Partnership (TMHP) Provider Enrollment Management System (PEMS), an automated system that is the single tool for provider enrollment, re-enrollment, revalidation, and maintenance requests (maintaining and updating provider enrollment record information). Children’s Health Insurance Program (CHIP) provider enrollment, revalidation, and re-enrollment documentation, including risk-based screenings, are tracked in PEMS. Additionally, the relevant federal databases are checked at least monthly for all providers currently enrolled in CHIP. Of the CHIP providers requested during the fiscal year 2023 Statewide Single Audit, 59 of 60 samples had been enrolled or revalidated through PEMS and the auditor received all requested documentation. The listed exceptions only apply to one CHIP provider. The provider enrolled with CHIP before the implementation of PEMS. HHSC operated under the public health emergency (PHE) between March 30, 2020, and May 11, 2023. In response to the public health emergency (PHE), the Centers for Medicare and Medicaid Services waived exclusion check requirements for provider reenrollments and revalidations. HHSC is in the process of revalidating providers through PEMS; however, as a result of the PHE end date and provider revalidation requirements, the projected completion date for the required revalidation of all CHIP providers is January 2027. HHSC continues efforts to enroll CHIP providers through PEMS and expects to eliminate errors related to these documents once all CHIP providers have revalidated. Implementation dates: December 2021, PEMS implementation January 2027, provider enrollment and revalidation completed Responsible persons: Jordan Nichols, Deputy Associate Commissioner, Medicaid and CHIP Services Operations Management

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Finding 382986 (2023-014)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Eligibility Significant Deficiency Matching / Level of Effort / Earmarking § 200.303

Corrective action plan: The applicant's file date is the date HHSC or an HHSC agent receives an application that contains, at a minimum, the person's name, address and signature. A faxed or electronic signature, if using the online application available through YourTexasBenefits.com, is acceptable. ...

Corrective action plan: The applicant's file date is the date HHSC or an HHSC agent receives an application that contains, at a minimum, the person's name, address and signature. A faxed or electronic signature, if using the online application available through YourTexasBenefits.com, is acceptable. Access and Eligibility Services (AES) must determine eligibility and provide Form TF0001, Notice of Case Action, by the 45th day after the file date for an application requesting health care for children. Federal regulations at 42 CFR 435.912(c)(3) require that HHSC complete an eligibility determination within 90 days for individuals who are applying for Medicaid based on disability and within 45 days for all other applicants. HHSC has made significant investments in its eligibility workforce to address required application processing timeframes. In the last fiscal year, HHSC onboarded more than 2,100 eligibility staff, implemented workforce recruitment and retention initiatives, and augmented its training capacity by leveraging technology, strengthening the quality of the virtual learning products and scheduling, and standardizing On-the-Job Trainings. HHSC is working on cross-training eligibility advisor staff across all programs (SNAP, TANF, Medicaid, CHIP, MEPD). HHSC is actively reviewing existing application processing procedures to ensure all applications are reviewed and an eligibility determination is made within the required timelines. Implementation date: December 31, 2024 Responsible person: Gracie Perez – Interim Associate Commissioner, AES Operations

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Finding 382984 (2023-013)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting § 200.303 § 200.334

Corrective action plan: The HHSC Federal Funds Office will work with HHSC Accounting, Department of Family and Protective Services (DFPS), and Texas Workforce Commission (TWC) to strengthen oversight of the Social Services Block Grant (SSBG) post-expenditure report. As part of this oversight, HHSC w...

Corrective action plan: The HHSC Federal Funds Office will work with HHSC Accounting, Department of Family and Protective Services (DFPS), and Texas Workforce Commission (TWC) to strengthen oversight of the Social Services Block Grant (SSBG) post-expenditure report. As part of this oversight, HHSC will compile procedure documents, methodologies, data sources, and work documents from DFPS and TWC. The HHSC Federal Funds Office already has this documentation for HHSC. Implementation date: August 31, 2024 Responsible person: Racheal Kane, Director, Federal Funds

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Finding 382970 (2023-012)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Special Tests & Provisions Eligibility § 200.303

Corrective action plan: HHSC has made significant investments in its eligibility workforce to meet workload demands. In the last fiscal year, HHSC has onboarded more than 2,100 eligibility staff, implemented workforce recruitment and retention initiatives, and augmented its training capacity by leve...

Corrective action plan: HHSC has made significant investments in its eligibility workforce to meet workload demands. In the last fiscal year, HHSC has onboarded more than 2,100 eligibility staff, implemented workforce recruitment and retention initiatives, and augmented its training capacity by leveraging technology, strengthening the quality of the virtual learning products and scheduling, and standardizing On-the-Job Trainings. HHSC will also continue to create and share guidance and tips with staff to reinforce proper data entry in the eligibility determination system, including entries related to TANF. Implementation date: December 31, 2024 Responsible person: Gracie Perez – Interim Associate Commissioner, Access and Eligibility Services (AES) Operations

View Audit 296491 Questioned Costs: $1

Finding 382969 (2023-011)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Subrecipient Monitoring § 200.303 § 200.332

Corrective action plan: TANF – While Intellectual and Developmental Disabilities (IDD) Services & Preadmission Screening & Resident Review (PASRR) no longer operates contracts with Temporary Assistance for Needy Families, Social Services Block Grant, or Block Grants for Community Mental Health Servi...

Corrective action plan: TANF – While Intellectual and Developmental Disabilities (IDD) Services & Preadmission Screening & Resident Review (PASRR) no longer operates contracts with Temporary Assistance for Needy Families, Social Services Block Grant, or Block Grants for Community Mental Health Services funding, IDD Services & PASRR’s IDD Contract Management Unit will incorporate the following items into its performance contracts and record the requirement in its procedure defining required data fields for contracts that include federal funding:  UEI  FAIN  Federal award date  Assistance listings numbers and title  Indirect cost rate (including if the de minimis rate is charged) For indirect cost rates, the Federal Funds Office Indirect Cost Rate Group continues to accept, negotiate, and acknowledge Indirect Cost Rates for the Health and Human Services system. Once a rate is established, the contracting area incorporates the rate into appropriate contracts. The IDD Contract Management Unit will incorporate approved indirect cost rates into contracts that include federal awards. SSBG/MHBG – Behavioral Health Services’ pass-through agreements effective September 1, 2023 include 2 CFR §200.332 requirements. Implementation dates: TANF – August 31, 2025 SSBG/MHBG – September 1, 2023 Responsible persons: TANF – Chad Pomerleau, Director, IDD Services & PASRR Contract Management Unit SSBG/MHBG – Roderick Swan, Associate Commissioner, Behavioral Health Contract Operations

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Finding 382968 (2023-010)

Material Weakness 2023

State of Texas C/o Comptroller of Public Accounts

TX

Procurement, Suspension & Debarment Subrecipient Monitoring Material Weakness § 200.303

Corrective action plan: HHSC is currently engaged in long-term planning related to improving FFATA reporting, which may involve the use of CAPPS-Financials, or a different system; with the choice of solution depending on a determination of overall effectiveness. While it may be potentially problemat...

Corrective action plan: HHSC is currently engaged in long-term planning related to improving FFATA reporting, which may involve the use of CAPPS-Financials, or a different system; with the choice of solution depending on a determination of overall effectiveness. While it may be potentially problematic for HHSC to commit to the specific designation of CAPPS-Financials as the improvement solution, actions will be taken to improve compliance. HHSC will implement a quality review of selected programs to assess FFATA compliance on an annual basis. Implementation date: September 1, 2025 Responsible person: Racheal Kane, Director, Federal Funds

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Finding 382966 (2023-001)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

Corrective action plan: To rectify the discrepancies in the EA Eligibility Application/Determination section of the IMPACT system, DFPS is implementing the following measures: 1. Research and Analysis: DFPS IT initiated research on 12/12/2023 to investigate the root cause of why the child became eli...

Corrective action plan: To rectify the discrepancies in the EA Eligibility Application/Determination section of the IMPACT system, DFPS is implementing the following measures: 1. Research and Analysis: DFPS IT initiated research on 12/12/2023 to investigate the root cause of why the child became eligible upon recertification. This research will be ongoing to comprehensively understand the underlying factors. 2. Database Audit: A database audit table was added in early October 2023 to expedite the identification of similar issues in the future. This enhancement aims to facilitate a quicker determination of the root cause for any inaccuracies related to EA eligibility. 3. Batch Analysis: The EA eligibility batch process will undergo a thorough analysis to ensure it accurately identifies children who should or should not be deemed EA eligible. Insights from this analysis will help optimize the batch process and prevent similar occurrences. 4. Project Review: A review of Project 65700, completed in August 2021, will be conducted to assess if any gaps in the re-certification batch allowed a child to be incorrectly considered EA eligible. The data fix performed during this project will also be scrutinized to ensure it adhered to accurate eligibility criteria. 5. Communication and Training: DFPS commits to ongoing communication and training for INV/AR staff regarding EA and the correct method of answering questions within the IMPACT system. This aims to enhance staff awareness and compliance with federal guidelines and internal policies. 6. Internal Quality Assurance: DFPS will strengthen its internal quality assurance reviews of cases eligible for EA. This proactive approach ensures ongoing compliance with federal guidelines and internal policies, thereby minimizing the likelihood of eligibility-related errors. 7. In Fiscal Year 2023, DFPS Investigations/Alternative Response personnel underwent supplementary training sessions and received revised policy and resource guides pertaining to Emergency Assistance (EA). These initiatives were implemented to address the concerns identified, specifically related to inaccuracies in responding to questions within the EA Eligibility Application/Determination. DFPS remains committed to these corrective actions to address the identified issues and continually improve the accuracy and reliability of the EA eligibility determination process. The effectiveness of these measures will be regularly assessed to uphold the integrity of the system and prevent improper payments. Citizenship: To rectify this situation and to ensure that a child that is not a U.S. citizen, qualified alien, or permanent resident does not receive EA benefits, DFPS is implementing the following measures: 1. DFPS Finance will work with program and IT to determine the best practices when answering citizenship and the Emergency Assistance (EA) eligibility questions and ensure the IMPACT system is reading the responses and applying the logic properly resulting in EA eligibility determination that is in compliance with United States Codes, Chapter 8 Aliens and Nationality, Chapter 14 – Restricting Welfare and Public Benefits of Aliens, §1611. 2. DFPS will review the list of non-citizens and update their eligibility if they are incorrectly deemed EA eligible. 3. DFPS will review the payments issued to non-citizens and process adjustments to ensure EA funds are used only for eligible activities. Implementation dates: IMPACT IT research begun on 12/12/2023 and will be ongoing to determine the root cause of the issue. Ongoing communication to staff. Citizenship: The first item will require a coordination with IT and programs and it’s completion date will be dependent on the efforts required to make the agreed upon changes. Item 2 and 3 is anticipated to be completed by May 31, 2024. Responsible persons: Jerome Green, CPI Deputy Director of Field; Citizenship: Scott Greer, Budget Director

View Audit 296491 Questioned Costs: $1

Finding 382959 (2023-003)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Special Tests & Provisions Significant Deficiency § 200.303

Corrective action plan: DSHS TVFC compliance site visits are now separated into two stages: Process & Documentation and Oversight & Verification. During 2023, internal controls and role assignments were established for each phase to ensure appropriate entry into PEAR, review activities, and follow-u...

Corrective action plan: DSHS TVFC compliance site visits are now separated into two stages: Process & Documentation and Oversight & Verification. During 2023, internal controls and role assignments were established for each phase to ensure appropriate entry into PEAR, review activities, and follow-up activities. These controls are in place and expected to be used throughout fiscal year 2024. Implementation date: February 20, 2024 Responsible person: Denise Reeder, MPH, MA, Immunization Section, Vaccine Operations Group Manager

View Audit 296491 Questioned Costs: $1

Finding 382958 (2023-002)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Matching / Level of Effort / Earmarking Special Tests & Provisions Reporting § 200.303

Corrective action plan: An “Adding New Users-CHRS” document was submitted to the auditors in 2022 as an interim measure that remains in place. Immunization program and VHSS program staff are working together with HHSC Information Technology to establish a replacement system to CHRS. The new system i...

Corrective action plan: An “Adding New Users-CHRS” document was submitted to the auditors in 2022 as an interim measure that remains in place. Immunization program and VHSS program staff are working together with HHSC Information Technology to establish a replacement system to CHRS. The new system is expected to address provisioning issues and provide central office staff with reports to be able to analyze data more quickly. This replacement system is expected to be identified and implemented by June 2026. Implementation date: Replacement System implementation anticipated by June 30, 2026 Responsible person: Greg Leos, Assessment and Epidemiology Group Manager

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Finding 382957 (2023-030)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Matching / Level of Effort / Earmarking Subrecipient Monitoring Period of Performance § 200.303

Corrective action plan: TEA’s Department of Grant Compliance and Administration (GCA) will implement the following actions to ensure accuracy of corrections requested by LEAs in the USDE ESSER Annual Performance Report:  USDE ESSER Reporting Corrections Changelog – In direct response to this audit ...

Corrective action plan: TEA’s Department of Grant Compliance and Administration (GCA) will implement the following actions to ensure accuracy of corrections requested by LEAs in the USDE ESSER Annual Performance Report:  USDE ESSER Reporting Corrections Changelog – In direct response to this audit exception, the GCA Department Chief of Staff and GCA ESSER Reporting Team has begun implementing a changelog to track LEA corrections on the various ESSER Annual Performance Reports. This changelog is intended to: 1. Track changes requested by LEAs; 2. Verify that staff have responded to and confirmed corrections with LEAs; 3. Track that changes have been made on the various reports; and 4. Ensure that the changes are completed on the respective report.  Updated Documentation Procedures – GCA Department Chief of Staff and ESSER Reporting staff will begin to ensure that the various corrected reports (after the first submission, and subsequent correction periods) are properly documented, so that the various versions of the report submitted to USDE are tracked accordingly, this will allow for corrections requested by LEAs can be verified in accordance with the changelog mentioned above.  Quality Control Review – GCA Department Chief of Staff and ESSER Reporting Staff will begin development of additional quality control procedures for the CROSSACT report to verify that the data that is submitted by LEAs via SmartSheet is properly entered into the Excel spreadsheet that is uploaded to USDE. These procedures will verify the following: 1. Verify that the appropriate LEA name and UEI was properly entered into the Excel spreadsheet; and 2. Verify that the FTE counts reported by LEAs upload correctly and within the variance allowed by USDE in their business rules. Implementation date: All of these changes will be implemented starting in Year Four of USDE ESSER Annual Reporting by TEA. Responsible persons: Associate Commissioner and Chief Grants Officer, Cory Green and GCA Department Chief of Staff, Nick Davis

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Finding 382953 (2023-031)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Subrecipient Monitoring § 200.303 § 200.332

Corrective action plan: SRM has added all AEL subrecipients to its Monitoring Year 2024 mid-year risk assessment. They will be included in the Monitoring Year 2025 risk assessment and all annual and mid-year risk assessments going forward. Implementation date: January 23, 2024 Responsible persons: M...

Corrective action plan: SRM has added all AEL subrecipients to its Monitoring Year 2024 mid-year risk assessment. They will be included in the Monitoring Year 2025 risk assessment and all annual and mid-year risk assessments going forward. Implementation date: January 23, 2024 Responsible persons: Mary Millan, Deputy Director, SRM, Division of Fraud Deterrence and Compliance Monitoring.

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Finding 382928 (2023-021)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Subrecipient Monitoring Reporting Significant Deficiency § 200.303

Corrective action plan: The OOG is creating materials for Grantees to clearly define and standardize terms in accordance with SLFRF Compliance and Reporting Guidance Version 5.0. Additionally, the OOG is updating internal processes to enforce Agency reporting of FSRs and Reconcilers on a monthly bas...

Corrective action plan: The OOG is creating materials for Grantees to clearly define and standardize terms in accordance with SLFRF Compliance and Reporting Guidance Version 5.0. Additionally, the OOG is updating internal processes to enforce Agency reporting of FSRs and Reconcilers on a monthly basis for all active grants. The OOG will ensure accuracy of Agency submissions by reconciling data between the eGrants Financial Status Reports (FSRs) and the Reconcilers. Should a variance exist, the OOG will document any changes made, and the reason therefore, with concurrence from the Agency. The OOG will update the reporting processes and institute new internal controls. For each reporting period, the ARPA Reporting Administrator will take the quarterly data provided for each grant and reconcile that information with the eGrants FSR data. The Public Safety Office (PSO) Grants Administration Director will verify the data. The PSO Executive Director will review and Administration Director will approve the reporting information prior to submission in to the ARPA Portal. Prior to final submission, the data will receive a quality assurance check. Implementation date: Full implementation by April 1, 2024 Responsible persons: Suzanne Johnson, Director of Administration and Aimee Snoddy, Executive Director Public Safety Office

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Finding 382927 (2023-020)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303

Corrective action plan: The Office of the Governor, Public Safety Office (PSO) has Policy 8.60 User Accounts that includes the periodic review of internal and external users in eGrants every six (6) months. This eGrants User Account Review is the responsibility of the PSO eGrants Help Desk. In Novem...

Corrective action plan: The Office of the Governor, Public Safety Office (PSO) has Policy 8.60 User Accounts that includes the periodic review of internal and external users in eGrants every six (6) months. This eGrants User Account Review is the responsibility of the PSO eGrants Help Desk. In November 2022, the lead System Support Specialist for the PSO retired from state service with over 20 years of service to the OOG. Due to her knowledge of the eGrants system, she was assigned the responsibility of completing the eGrants User Access Review; and, prior to her departure she completed a review that covered the January – June 2022 review period. After her departure, the eGrants User Access Review responsibility was assigned to the eGrants Help Desk but was not placed on the Master Tasklist used by the Desk to track compliance and reporting deadlines. This led to the July – December 2022 User Access Review not being completed. To ensure the eGrants User Access Review is completed in a timely manner and in accordance with our internal policy, this task has been added to the PSO Master Tasklist with a due date of July 31 for the January – June review period and January 31 for the July – December review period. In December 2023, the eGrants Help Desk completed the January 2023 – June 2023 user account review; the July 2023 – December 2023 review was completed on February 1, 2024. In December 2023 the PSO’s Grants Administration Director trained two PSO Help Desk staff on the User Account Review processes to mitigate issues with staff vacancies. This task will be monitored by the PSO’s Grants Administration Director. Implementation date: December 18, 2023 Responsible persons: Angie Martin, Public Safety Office Grants Administration Director, and Public Safety Office eGrants Help Desk Staff

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Finding 382926 (2023-019)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303

Corrective action plan: The OOG updated and documented the Change Management Procedures for Portal systems for all Portals subsequent to TTIR. The OOG began using Super Clio (the internally developed Change Management tracking system) for new projects and Portals, subsequent to TTIR, in accordance w...

Corrective action plan: The OOG updated and documented the Change Management Procedures for Portal systems for all Portals subsequent to TTIR. The OOG began using Super Clio (the internally developed Change Management tracking system) for new projects and Portals, subsequent to TTIR, in accordance with the new Change Management Procedure. Please see attached Change Management Procedure for OOG Information Services Division Portal systems. TTIR is a portal system that was created for a limited purpose and will decommission in the summer of 2024. The OOG will include the TTIR decommissioning project under the Change Management Procedure and mandate use of Super Clio. OOG Management does not anticipate further changes will be done to TTIR code, hotfixes applied, or content changes will be made. Any exceptions to this will be documented, approved, and signed by Management and put in the TTIR Program file for future evidence. Implementation date: Full implementation March 1, 2024 Responsible persons: Suzanne Johnson, Director of Administration, and Lars Hjaltman, Director of Information Services Division

View Audit 296491

Finding 382925 (2023-008)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303 § 200.334

Corrective action plan: The Provider Finance Department (PFD) will take proactive measures to establish and enforce guidelines that guarantee documentation is retained for a minimum of three years from the date of submission of the final expenditure report for each grant. This approach aligns with o...

Corrective action plan: The Provider Finance Department (PFD) will take proactive measures to establish and enforce guidelines that guarantee documentation is retained for a minimum of three years from the date of submission of the final expenditure report for each grant. This approach aligns with our dedication to transparency, accountability, and responsible grant management. We will ensure that all the documentation is saved within our documentation repository for a minimum of three years from the date of submission. Implementation date: June 1, 2024 Responsible person: Stacy Kerns – Director, Business Operations and Support Services

View Audit 296491 Questioned Costs: $1

Finding 382924 (2023-028)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting § 200.303

Corrective action plan: In response to the recent audit, the Texas Department of Housing and Community Affairs' (TDHCA) Homeowner Assistance Fund (HAF) Data and Reporting Team (DRT) is implementing operational changes to enhance its ability to validate the quarterly reports. Moving forward, DRT will...

Corrective action plan: In response to the recent audit, the Texas Department of Housing and Community Affairs' (TDHCA) Homeowner Assistance Fund (HAF) Data and Reporting Team (DRT) is implementing operational changes to enhance its ability to validate the quarterly reports. Moving forward, DRT will not only receive reports on totals for each budget, obligation, and expenditure field, but will also require the submission of backup documentation from the sending party. This additional step ensures that the team can independently verify the accuracy of reported figures. Furthermore, DRT will check the calculations within the backup documentation to confirm that the aggregate amounts align with the reported figures. These measures are designed to ensure that the HAF program's reporting is both accurate and reflective of activities. Implementation date: February 12, 2024 Responsible persons: David Johnson, HAF/TRR Data and Reporting Manager; Lizet Hinojosa, Director of HAF; Grace Timmons, Assistant Director of HAF; Lanette Johndrow, Director of HAF Subrecipient Activities; and Teri- Ann Parise, HAF Financial Analyst. Corrective action plan: For legal and counseling services, a report has been created that pulls all costs from the Housing Contract System and separates the data by Intake, Housing and Legal to allow for an appropriate report of all costs. This report is to be run weekly and updated by the Director of HAF Subrecipients, and then given to the finance department to verify against paid invoices for validation. Any discrepancies are to be discussed immediately and resolved. Implementation date: July 17, 2023 Responsible persons: Lanette Johndrow, Director of HAF Subrecipient Activities; Teri-Ann Parise, HAF Financial Analyst; and Mariah Tamayo, Financial Analyst

View Audit 296491

Finding 382923 (2023-027)

Significant Deficiency 2023

State of Texas C/o Comptroller of Public Accounts

TX

Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

Corrective action plan: Yardi and AmeriNat Case auditors and supervisors have been reminded that the original loan amount and origination date must be verified before approving a case. The CDF portal should have these columns completed. If the CDF does not include the original loan amount and origin...

Corrective action plan: Yardi and AmeriNat Case auditors and supervisors have been reminded that the original loan amount and origination date must be verified before approving a case. The CDF portal should have these columns completed. If the CDF does not include the original loan amount and origination date, case auditors will ask the loan servicer for a corrected record which includes the original loan amount and origination date in order to confirm conforming loan limits. For non-traditional loan servicers, a deed of trust or settlement statement will continue to be requested from the homeowner. As it relates to the specific case in question, the Reinstatement (R program) plus Monthly Payment Assistance (U Program) case was originally a HAF Contribution to Modification case (P Program.) The case was transferred from the P Program to the R Program on 8/23/2022 and due to a technical issue, the Yardi portal did not add the U Program to the existing R Program. On 1/17/2024, the U Program was manually added to the R Program and payment was made to the homeowner’s loan servicer for the three additional monthly payments. Implementation date: January 17, 2024 Responsible persons: Lizet Hinojosa, Director of HAF and Grace Timmons, Assistant Director of HAF

View Audit 296491

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