Assistance Listing Number, Federal Agency, and Program Name -93.233/93.837, U.S. Department of Health and Human Services, Research and Development Cluster 93.323, U.S. Department of Health and Human Services, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Award Identification Number and Year - 93.233 - R01HL142116; 93.837 - U01HL146245 93.323 - 22680258J; 32680012K Pass-through Entity - 93.233 N/A (direct); 93.837 N/A (direct) 93.323 Illinois Department of Public Health (IDPH) Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.318(a), the nonfederal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a federal award or subaward. The nonfederal entity's documented procurement procedures must conform to the procurement standards identified in §§200.317 through 200.327. Per 2 CFR 200.318(i), the nonfederal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Per 2 CFR 200.324(a), the nonfederal entity must perform a cost or price analysis in connection with every procurement action in excess of the SAT, including contract modifications. The method and degree of analysis is dependent upon the facts surrounding the particular procurement situation; but, as a starting point, the nonfederal entity must make independent estimates before receiving bids or proposals. Condition - Controls were not sufficient to establish written policies and procedures surrounding procured contracts and to ensure that the history of procurement decisions was documented, as required by 2 CFR 200. Questioned Costs - Research and Development Cluster - unknown ELC - unknown Identification of How Questioned Costs Were Computed - N/A Context - Research and Development Cluster - For the four contracts tested, management did not maintain records sufficient to detail the history of procurement, rationale for the method of procurement, selection of the contract type, or basis of the contract price. Additionally, for the largest of the four contracts with activity of approximately $375,000, which is above the SAT established by FAR, management did not document its rationale for limiting competition, nor was management able to provide evidence that a cost-price analysis was performed. Finally, management has not formally documented an appropriate micropurchase or SAT threshold. ELC - For the three of the four contracts tested that were procured under noncompetitive means, management did not maintain records sufficient to detail the history of procurement, rationale for the method of procurement, selection of the contract type, or basis of the contract price. Further, for three out of four contracts tested under the Research and Development Cluster and all four contracts tested under ELC, management was unable to provide evidence that contractors were checked for suspension and debarment in advance of entering into a covered transaction. Because there was evidence that these contractors were not suspended or debarred, no questioned costs related to this noncompliance were identified. Cause and Effect - A lack of formal procurement policies and procedures, internally established procurement thresholds, or records in support of procurement decisions could result in material noncompliance with federal procurement standards. Recommendation - We recommend that management formalize procurement policies and procedures to demonstrate how the Institute will achieve compliance with standards identified in §§200.317 through 200.327. Additionally, we recommend management retain documented evidence that its policies and procedures were followed to ensure compliance with procurement standards. Views of Responsible Officials and Corrective Action Plan – Management agrees with the recommendation and will review the relevant guidance to ensure compliance. Necessary revisions will be made to the existing procurement policies and procedures in a timely manner to ensure that procurement decisions are documented, as required by 2 CFR Part 200.
Assistance Listing Number, Federal Agency, and Program Name -93.233/93.837, U.S. Department of Health and Human Services, Research and Development Cluster 93.323, U.S. Department of Health and Human Services, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Award Identification Number and Year - 93.233 - R01HL142116; 93.837 - U01HL146245 93.323 - 22680258J; 32680012K Pass-through Entity - 93.233 N/A (direct); 93.837 N/A (direct) 93.323 Illinois Department of Public Health (IDPH) Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.318(a), the nonfederal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a federal award or subaward. The nonfederal entity's documented procurement procedures must conform to the procurement standards identified in §§200.317 through 200.327. Per 2 CFR 200.318(i), the nonfederal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Per 2 CFR 200.324(a), the nonfederal entity must perform a cost or price analysis in connection with every procurement action in excess of the SAT, including contract modifications. The method and degree of analysis is dependent upon the facts surrounding the particular procurement situation; but, as a starting point, the nonfederal entity must make independent estimates before receiving bids or proposals. Condition - Controls were not sufficient to establish written policies and procedures surrounding procured contracts and to ensure that the history of procurement decisions was documented, as required by 2 CFR 200. Questioned Costs - Research and Development Cluster - unknown ELC - unknown Identification of How Questioned Costs Were Computed - N/A Context - Research and Development Cluster - For the four contracts tested, management did not maintain records sufficient to detail the history of procurement, rationale for the method of procurement, selection of the contract type, or basis of the contract price. Additionally, for the largest of the four contracts with activity of approximately $375,000, which is above the SAT established by FAR, management did not document its rationale for limiting competition, nor was management able to provide evidence that a cost-price analysis was performed. Finally, management has not formally documented an appropriate micropurchase or SAT threshold. ELC - For the three of the four contracts tested that were procured under noncompetitive means, management did not maintain records sufficient to detail the history of procurement, rationale for the method of procurement, selection of the contract type, or basis of the contract price. Further, for three out of four contracts tested under the Research and Development Cluster and all four contracts tested under ELC, management was unable to provide evidence that contractors were checked for suspension and debarment in advance of entering into a covered transaction. Because there was evidence that these contractors were not suspended or debarred, no questioned costs related to this noncompliance were identified. Cause and Effect - A lack of formal procurement policies and procedures, internally established procurement thresholds, or records in support of procurement decisions could result in material noncompliance with federal procurement standards. Recommendation - We recommend that management formalize procurement policies and procedures to demonstrate how the Institute will achieve compliance with standards identified in §§200.317 through 200.327. Additionally, we recommend management retain documented evidence that its policies and procedures were followed to ensure compliance with procurement standards. Views of Responsible Officials and Corrective Action Plan – Management agrees with the recommendation and will review the relevant guidance to ensure compliance. Necessary revisions will be made to the existing procurement policies and procedures in a timely manner to ensure that procurement decisions are documented, as required by 2 CFR Part 200.
Assistance Listing Number, Federal Agency, and Program Name -93.233/93.837, U.S. Department of Health and Human Services, Research and Development Cluster 93.323, U.S. Department of Health and Human Services, Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Federal Award Identification Number and Year - 93.233 - R01HL142116; 93.837 - U01HL146245 93.323 - 22680258J; 32680012K Pass-through Entity - 93.233 N/A (direct); 93.837 N/A (direct) 93.323 Illinois Department of Public Health (IDPH) Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per 2 CFR 200.303(a), nonfederal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with the guidance in Standards for Internal Control in the Federal Government, issued by the Comptroller General of the United States, or the Internal Control Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.318(a), the nonfederal entity must have and use documented procedures, consistent with state, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a federal award or subaward. The nonfederal entity's documented procurement procedures must conform to the procurement standards identified in §§200.317 through 200.327. Per 2 CFR 200.318(i), the nonfederal entity must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Per 2 CFR 200.324(a), the nonfederal entity must perform a cost or price analysis in connection with every procurement action in excess of the SAT, including contract modifications. The method and degree of analysis is dependent upon the facts surrounding the particular procurement situation; but, as a starting point, the nonfederal entity must make independent estimates before receiving bids or proposals. Condition - Controls were not sufficient to establish written policies and procedures surrounding procured contracts and to ensure that the history of procurement decisions was documented, as required by 2 CFR 200. Questioned Costs - Research and Development Cluster - unknown ELC - unknown Identification of How Questioned Costs Were Computed - N/A Context - Research and Development Cluster - For the four contracts tested, management did not maintain records sufficient to detail the history of procurement, rationale for the method of procurement, selection of the contract type, or basis of the contract price. Additionally, for the largest of the four contracts with activity of approximately $375,000, which is above the SAT established by FAR, management did not document its rationale for limiting competition, nor was management able to provide evidence that a cost-price analysis was performed. Finally, management has not formally documented an appropriate micropurchase or SAT threshold. ELC - For the three of the four contracts tested that were procured under noncompetitive means, management did not maintain records sufficient to detail the history of procurement, rationale for the method of procurement, selection of the contract type, or basis of the contract price. Further, for three out of four contracts tested under the Research and Development Cluster and all four contracts tested under ELC, management was unable to provide evidence that contractors were checked for suspension and debarment in advance of entering into a covered transaction. Because there was evidence that these contractors were not suspended or debarred, no questioned costs related to this noncompliance were identified. Cause and Effect - A lack of formal procurement policies and procedures, internally established procurement thresholds, or records in support of procurement decisions could result in material noncompliance with federal procurement standards. Recommendation - We recommend that management formalize procurement policies and procedures to demonstrate how the Institute will achieve compliance with standards identified in §§200.317 through 200.327. Additionally, we recommend management retain documented evidence that its policies and procedures were followed to ensure compliance with procurement standards. Views of Responsible Officials and Corrective Action Plan – Management agrees with the recommendation and will review the relevant guidance to ensure compliance. Necessary revisions will be made to the existing procurement policies and procedures in a timely manner to ensure that procurement decisions are documented, as required by 2 CFR Part 200.
Allowable Costs/Activities Allowed – Personal Services Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 6 NU50CK000501-01-08, 6 NU50CK000501-02-17 August 1, 2019 – July 31, 2024, August 1, 2019 – July 31, 2027 Statistically Valid Sample: No, and not intended to be a statistically valid sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR section 200.303(a), the Texas Department of State Health Services (DSHS) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.430 Standards for Documentation of Personnel Expenses, Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by an internal control system that ensures the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) comply with the established accounting policies and practices of the non-Federal entity; (vi) support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. (vii) Budget estimates (meaning, estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity performed; (B) Significant changes in the related work activity (as defined by the recipient's or subrecipient's written policies) are promptly identified and entered into the records. Short-term (such as one or two months) fluctuations between workload categories do not need to be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The recipient's or subrecipient's system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition: DSHS requires its employees to complete monthly time and leave reporting, regardless of whether the employee works solely on a single federal award or cost objective, or on multiple activities or cost objectives. Each employee has a default task profile based on their position in the agency that determines how their payroll and payroll-related dollars are allocated. Employees are instructed and given training on how to report any deviations from their profile as well as report any vacation time, sick time, leave of absence, etc. Employees are required to certify their time by the 10th of the month for the previous months’ time. Like all DSHS employees, supervisors are required to certify their time monthly. However, their time certification includes an additional affirmation which states the supervisor has performed the following: Reviewed the default task profile/labor account code for each of their direct reports. Reviewed the timesheets for all direct reports as compared to the default task profiles/labor account codes for accuracy of time worked and adjusted if necessary. For direct reports who have reported deviations, reviewed and verified the deviations reported and approved the respective timesheet. This documented affirmation provides sufficient documentation to indicate that the supervisors have reviewed after the fact interim payroll and payroll-related charges made to federal awards based on budget estimates. Audit procedures included a selection of 40 payroll-related expenditures incurred during the fiscal year totaling $191,809. For five of the 40 samples selected, the employee supervisor did not certify their monthly timesheet, and thus did not acknowledge neither the review of the employees’ default task profile/account labor code or their timesheets. Questioned costs: None. Context: See “Condition.” Cause: All five of the exceptions noted were directly reporting to the same supervisor. The monthly timesheets selected were during the months of July and August 2024. The supervisor was recently hired in April 2024 and was unaware of the requirement to certify monthly. Effect: Without the supervisor timesheet certification, there is a lack of sufficient documentation to indicate that they have reviewed after-the-fact interim payroll and payroll-related charges made to the federal awards based on budget estimates. Repeat Finding: No Recommendation: DSHS should enhance new hire training policies and procedures to ensure all new hire trainings clearly address labor account codes, monthly time reporting, and task profiles. Views of responsible officials: DSHS has robust timekeeping controls but recognizes this opportunity to enhance training with reinforcement for new supervisors.
Allowable Costs/Activities Allowed – Personal Services Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 6 NU50CK000501-01-08, 6 NU50CK000501-02-17 August 1, 2019 – July 31, 2024, August 1, 2019 – July 31, 2027 Statistically Valid Sample: No, and not intended to be a statistically valid sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR section 200.303(a), the Texas Department of State Health Services (DSHS) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.430 Standards for Documentation of Personnel Expenses, Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by an internal control system that ensures the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) comply with the established accounting policies and practices of the non-Federal entity; (vi) support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. (vii) Budget estimates (meaning, estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity performed; (B) Significant changes in the related work activity (as defined by the recipient's or subrecipient's written policies) are promptly identified and entered into the records. Short-term (such as one or two months) fluctuations between workload categories do not need to be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The recipient's or subrecipient's system of internal controls includes processes to perform periodic after-the-fact reviews of interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made so that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition: DSHS requires its employees to complete monthly time and leave reporting, regardless of whether the employee works solely on a single federal award or cost objective, or on multiple activities or cost objectives. Each employee has a default task profile based on their position in the agency that determines how their payroll and payroll-related dollars are allocated. Employees are instructed and given training on how to report any deviations from their profile as well as report any vacation time, sick time, leave of absence, etc. Employees are required to certify their time by the 10th of the month for the previous months’ time. Like all DSHS employees, supervisors are required to certify their time monthly. However, their time certification includes an additional affirmation which states the supervisor has performed the following: Reviewed the default task profile/labor account code for each of their direct reports. Reviewed the timesheets for all direct reports as compared to the default task profiles/labor account codes for accuracy of time worked and adjusted if necessary. For direct reports who have reported deviations, reviewed and verified the deviations reported and approved the respective timesheet. This documented affirmation provides sufficient documentation to indicate that the supervisors have reviewed after the fact interim payroll and payroll-related charges made to federal awards based on budget estimates. Audit procedures included a selection of 40 payroll-related expenditures incurred during the fiscal year totaling $191,809. For five of the 40 samples selected, the employee supervisor did not certify their monthly timesheet, and thus did not acknowledge neither the review of the employees’ default task profile/account labor code or their timesheets. Questioned costs: None. Context: See “Condition.” Cause: All five of the exceptions noted were directly reporting to the same supervisor. The monthly timesheets selected were during the months of July and August 2024. The supervisor was recently hired in April 2024 and was unaware of the requirement to certify monthly. Effect: Without the supervisor timesheet certification, there is a lack of sufficient documentation to indicate that they have reviewed after-the-fact interim payroll and payroll-related charges made to the federal awards based on budget estimates. Repeat Finding: No Recommendation: DSHS should enhance new hire training policies and procedures to ensure all new hire trainings clearly address labor account codes, monthly time reporting, and task profiles. Views of responsible officials: DSHS has robust timekeeping controls but recognizes this opportunity to enhance training with reinforcement for new supervisors.
Cash Management – Cash Management Improvement Act Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 6 NU50CK000501, 6 NU51CK000353 August 1, 2019 – July 31, 2024, August 1, 2019 – July 31, 2027, August 1, 2024 – July 31, 2029 Statistically Valid Sample: No, and not intended to be a statistically valid sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR section 200.303(a), the Texas Department of State Health Services (DSHS) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 31 CFR Part 205, a Federal assistance program must abide by the rules in Subpart A, interest calculation procedures, if it falls within the funding threshold set forth by the Federal government. The dollar threshold is calculated using the most recent Single Audit data. Programs not subject to these rules are considered under Subpart B. Rather than incurring an interest liability for programs in Subpart B, the funds transferred to the State will be limited to the immediate cash needs of the agency and should be times so as to minimize the period between drawdown and disbursement. Condition: The State determines each major program subject to interest liability calculations every year and communicates the covered programs to each agency. Funding techniques and clearance patterns are set out in the Treasury-State Agreement. Per the Texas Cash Management Improvement Act (CMIA) Handbook (based on the Treasury-State agreement), each state agency that administers a major program has the following responsibilities including but not limited to the following: Review flow of funds for affected programs and determine appropriate funding technique. Develop sample data and calculate clearance days on federal funds from the time of deposit in the State Treasury until warrants are issued on the funds (Period 1). Comply with the Subpart B requirements for programs not covered by Subpart A. Per the 2024 Texas Treasury-State Agreement, DSHS was required to submit a Period 1 calculation for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program. Audit procedures included selecting a sample of federal cash draws and verifying that the timing of the federal cash draws was in compliance with the applicable funding techniques specified in the Treasury-State Agreement. Cash draws included in the Period 1 calculation submitted to the Texas Comptroller of Public Accounts’ web application totaled $89,236,255; however, the final amount of expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) for the program was $289,534,627. Accordingly, the Period 1 calculation submission was understated by $200,298,372 and the calculation of the interest obligation owed to or by the federal government was incorrect. Questioned costs: None. Context: See “Condition.” Cause: DSHS made significant adjustments to the SEFA subsequent to the submission of the Period 1 calculation in the Texas Comptroller of Public Accounts’ web application. Once submitted, the web application is locked and DSHS must request for it to be unlocked in order to make revisions. Due to the timing of the adjustments to the SEFA and the conclusion of audit work, DSHS did not have sufficient time to request and submit the revisions. Effect: The calculation of the interest obligation owed to or by the federal government may be misstated if the Period 1 calculation is incorrect. Repeat Finding: No Recommendation: DSHS should enhance reviews of its SEFA to avoid significant adjustments subsequent to the submission of its Period 1 calculation. Views of responsible officials: DSHS acknowledges and agrees with the finding as stated.
Cash Management – Cash Management Improvement Act Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Epidemiology and Laboratory Capacity for Infectious Diseases ALN: 93.323 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 6 NU50CK000501, 6 NU51CK000353 August 1, 2019 – July 31, 2024, August 1, 2019 – July 31, 2027, August 1, 2024 – July 31, 2029 Statistically Valid Sample: No, and not intended to be a statistically valid sample. Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR section 200.303(a), the Texas Department of State Health Services (DSHS) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 31 CFR Part 205, a Federal assistance program must abide by the rules in Subpart A, interest calculation procedures, if it falls within the funding threshold set forth by the Federal government. The dollar threshold is calculated using the most recent Single Audit data. Programs not subject to these rules are considered under Subpart B. Rather than incurring an interest liability for programs in Subpart B, the funds transferred to the State will be limited to the immediate cash needs of the agency and should be times so as to minimize the period between drawdown and disbursement. Condition: The State determines each major program subject to interest liability calculations every year and communicates the covered programs to each agency. Funding techniques and clearance patterns are set out in the Treasury-State Agreement. Per the Texas Cash Management Improvement Act (CMIA) Handbook (based on the Treasury-State agreement), each state agency that administers a major program has the following responsibilities including but not limited to the following: Review flow of funds for affected programs and determine appropriate funding technique. Develop sample data and calculate clearance days on federal funds from the time of deposit in the State Treasury until warrants are issued on the funds (Period 1). Comply with the Subpart B requirements for programs not covered by Subpart A. Per the 2024 Texas Treasury-State Agreement, DSHS was required to submit a Period 1 calculation for the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program. Audit procedures included selecting a sample of federal cash draws and verifying that the timing of the federal cash draws was in compliance with the applicable funding techniques specified in the Treasury-State Agreement. Cash draws included in the Period 1 calculation submitted to the Texas Comptroller of Public Accounts’ web application totaled $89,236,255; however, the final amount of expenditures reported on the Schedule of Expenditures of Federal Awards (SEFA) for the program was $289,534,627. Accordingly, the Period 1 calculation submission was understated by $200,298,372 and the calculation of the interest obligation owed to or by the federal government was incorrect. Questioned costs: None. Context: See “Condition.” Cause: DSHS made significant adjustments to the SEFA subsequent to the submission of the Period 1 calculation in the Texas Comptroller of Public Accounts’ web application. Once submitted, the web application is locked and DSHS must request for it to be unlocked in order to make revisions. Due to the timing of the adjustments to the SEFA and the conclusion of audit work, DSHS did not have sufficient time to request and submit the revisions. Effect: The calculation of the interest obligation owed to or by the federal government may be misstated if the Period 1 calculation is incorrect. Repeat Finding: No Recommendation: DSHS should enhance reviews of its SEFA to avoid significant adjustments subsequent to the submission of its Period 1 calculation. Views of responsible officials: DSHS acknowledges and agrees with the finding as stated.
Matching and Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2101TXOACM, 2101TXOAHD, 2101TXOASS 10/1/2020 – 9/30/2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 42 USC 3029(b) Matching funds; percentage limitation (1) For each fiscal year, not less than 25 percent of the non-Federal share of the total expenditures under the State plan which is required by section 3024(d) of this title shall be met from funds from State or local public sources. (2) Funds required to meet the non-Federal share required by section 3024(d)(1)(D) of this title, in amounts exceeding 10 percent of the cost of the services specified in such section 3024(d)(1)(D) of this title, shall be met from State sources. Condition: During our testing of the program’s matching requirements, we noted the following: HHSC’s required match under 42 USC 3029(b)(1) for the fiscal year 2021 grant, which ended on September 30, 2023, was $979,430. State administration expenditures totaled $3,917,721, of which 25%, or 979,430 must be from non-Federal sources. HHSC provided a population of $1,206,534 of administration expenditures paid from non-Federal sources used to meet the matching requirement. Of this amount, audit procedures included testing 159 expenditures, totaling $771,585 that were paid from non-Federal sources used to meet the 25% matching requirement. We noted that 134 of the expenditures, totaling $744,159 were not administrative costs incurred by the State. Rather these were amounts paid to subrecipients. Accordingly, allowable non-federal expenditures were $462,376, which is less than the required match amount of $979,430 or 13.6% of the of the cost of state plan administration. HHSC did not meet the matching requirement per 42 USC 3029(b)(1). Additionally, the recipient share of expenditures (line j) and the remaining recipient share to be provided (line k) on the corresponding SF_x0002_425 report for 2101TXOASS was incorrectly reported. HHSC reported the recipient share of expenditures of $7,452,949; however, allowable non-federal expenditures were only $6,708,790. HHSC calculates its required recipient share of expenditures related to the state and Area Agencies on Aging (AAA’s) costs of administration of area plans and reports it on line i of the SF-425 report. For the fiscal year 2021 grant, we noted that while the match amount was met, the required match as reported on the SF-425 was calculated incorrectly as follows: See chart or table in the Schedule of Findings and Questioned Costs. HHSC’s required match under 42 USC 3029(b)(2) for the fiscal year 2021 grant, which ended on September 30, 2023, was $11,355,969. Of this amount, $3,785,323 was required to be funded from state sources, while the remaining $7,570,646, would be met by amounts paid by the AAA’s. HHSC provided a calculation of $30,107,759 of expenditures incurred to meet the AAA portion of the requirement. However, CLA was unable to substantiate that amount based on supporting documentation as final expenditures submitted by the AAA’s had been revised, however, HHSC did not revise their calculations. Questioned costs: Unknown Context: See “Condition.” Cause: Management calculates matching requirements and identifies actual expenditures to meet these requirements. For the exceptions noted for 42 USC 3029(b)(1), management failed to exclude unallowable expenditures when identifying expenditures incurred to meet the matching requirements. For the exception noted for 42 USC 3029(b)(2), management did not revise the matching calculation based on final amounts received from the AAA’s. Effect: Failure to meet matching requirements may result in a reduction in federal funding. Furthermore, failure to calculate, review, and approve final matching expenditures may lead to noncompliance with the terms of the grant and questioned costs. Repeat Finding: No. Recommendation: We recommend management enhance existing controls around the review of all expenditures that are used to meet the minimum required matching requirements. Views of responsible officials: HHSC concurs with the finding.
Matching and Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2101TXOACM, 2101TXOAHD, 2101TXOASS 10/1/2020 – 9/30/2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 42 USC 3029(b) Matching funds; percentage limitation (1) For each fiscal year, not less than 25 percent of the non-Federal share of the total expenditures under the State plan which is required by section 3024(d) of this title shall be met from funds from State or local public sources. (2) Funds required to meet the non-Federal share required by section 3024(d)(1)(D) of this title, in amounts exceeding 10 percent of the cost of the services specified in such section 3024(d)(1)(D) of this title, shall be met from State sources. Condition: During our testing of the program’s matching requirements, we noted the following: HHSC’s required match under 42 USC 3029(b)(1) for the fiscal year 2021 grant, which ended on September 30, 2023, was $979,430. State administration expenditures totaled $3,917,721, of which 25%, or 979,430 must be from non-Federal sources. HHSC provided a population of $1,206,534 of administration expenditures paid from non-Federal sources used to meet the matching requirement. Of this amount, audit procedures included testing 159 expenditures, totaling $771,585 that were paid from non-Federal sources used to meet the 25% matching requirement. We noted that 134 of the expenditures, totaling $744,159 were not administrative costs incurred by the State. Rather these were amounts paid to subrecipients. Accordingly, allowable non-federal expenditures were $462,376, which is less than the required match amount of $979,430 or 13.6% of the of the cost of state plan administration. HHSC did not meet the matching requirement per 42 USC 3029(b)(1). Additionally, the recipient share of expenditures (line j) and the remaining recipient share to be provided (line k) on the corresponding SF_x0002_425 report for 2101TXOASS was incorrectly reported. HHSC reported the recipient share of expenditures of $7,452,949; however, allowable non-federal expenditures were only $6,708,790. HHSC calculates its required recipient share of expenditures related to the state and Area Agencies on Aging (AAA’s) costs of administration of area plans and reports it on line i of the SF-425 report. For the fiscal year 2021 grant, we noted that while the match amount was met, the required match as reported on the SF-425 was calculated incorrectly as follows: See chart or table in the Schedule of Findings and Questioned Costs. HHSC’s required match under 42 USC 3029(b)(2) for the fiscal year 2021 grant, which ended on September 30, 2023, was $11,355,969. Of this amount, $3,785,323 was required to be funded from state sources, while the remaining $7,570,646, would be met by amounts paid by the AAA’s. HHSC provided a calculation of $30,107,759 of expenditures incurred to meet the AAA portion of the requirement. However, CLA was unable to substantiate that amount based on supporting documentation as final expenditures submitted by the AAA’s had been revised, however, HHSC did not revise their calculations. Questioned costs: Unknown Context: See “Condition.” Cause: Management calculates matching requirements and identifies actual expenditures to meet these requirements. For the exceptions noted for 42 USC 3029(b)(1), management failed to exclude unallowable expenditures when identifying expenditures incurred to meet the matching requirements. For the exception noted for 42 USC 3029(b)(2), management did not revise the matching calculation based on final amounts received from the AAA’s. Effect: Failure to meet matching requirements may result in a reduction in federal funding. Furthermore, failure to calculate, review, and approve final matching expenditures may lead to noncompliance with the terms of the grant and questioned costs. Repeat Finding: No. Recommendation: We recommend management enhance existing controls around the review of all expenditures that are used to meet the minimum required matching requirements. Views of responsible officials: HHSC concurs with the finding.
Matching and Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2101TXOACM, 2101TXOAHD, 2101TXOASS 10/1/2020 – 9/30/2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 42 USC 3029(b) Matching funds; percentage limitation (1) For each fiscal year, not less than 25 percent of the non-Federal share of the total expenditures under the State plan which is required by section 3024(d) of this title shall be met from funds from State or local public sources. (2) Funds required to meet the non-Federal share required by section 3024(d)(1)(D) of this title, in amounts exceeding 10 percent of the cost of the services specified in such section 3024(d)(1)(D) of this title, shall be met from State sources. Condition: During our testing of the program’s matching requirements, we noted the following: HHSC’s required match under 42 USC 3029(b)(1) for the fiscal year 2021 grant, which ended on September 30, 2023, was $979,430. State administration expenditures totaled $3,917,721, of which 25%, or 979,430 must be from non-Federal sources. HHSC provided a population of $1,206,534 of administration expenditures paid from non-Federal sources used to meet the matching requirement. Of this amount, audit procedures included testing 159 expenditures, totaling $771,585 that were paid from non-Federal sources used to meet the 25% matching requirement. We noted that 134 of the expenditures, totaling $744,159 were not administrative costs incurred by the State. Rather these were amounts paid to subrecipients. Accordingly, allowable non-federal expenditures were $462,376, which is less than the required match amount of $979,430 or 13.6% of the of the cost of state plan administration. HHSC did not meet the matching requirement per 42 USC 3029(b)(1). Additionally, the recipient share of expenditures (line j) and the remaining recipient share to be provided (line k) on the corresponding SF_x0002_425 report for 2101TXOASS was incorrectly reported. HHSC reported the recipient share of expenditures of $7,452,949; however, allowable non-federal expenditures were only $6,708,790. HHSC calculates its required recipient share of expenditures related to the state and Area Agencies on Aging (AAA’s) costs of administration of area plans and reports it on line i of the SF-425 report. For the fiscal year 2021 grant, we noted that while the match amount was met, the required match as reported on the SF-425 was calculated incorrectly as follows: See chart or table in the Schedule of Findings and Questioned Costs. HHSC’s required match under 42 USC 3029(b)(2) for the fiscal year 2021 grant, which ended on September 30, 2023, was $11,355,969. Of this amount, $3,785,323 was required to be funded from state sources, while the remaining $7,570,646, would be met by amounts paid by the AAA’s. HHSC provided a calculation of $30,107,759 of expenditures incurred to meet the AAA portion of the requirement. However, CLA was unable to substantiate that amount based on supporting documentation as final expenditures submitted by the AAA’s had been revised, however, HHSC did not revise their calculations. Questioned costs: Unknown Context: See “Condition.” Cause: Management calculates matching requirements and identifies actual expenditures to meet these requirements. For the exceptions noted for 42 USC 3029(b)(1), management failed to exclude unallowable expenditures when identifying expenditures incurred to meet the matching requirements. For the exception noted for 42 USC 3029(b)(2), management did not revise the matching calculation based on final amounts received from the AAA’s. Effect: Failure to meet matching requirements may result in a reduction in federal funding. Furthermore, failure to calculate, review, and approve final matching expenditures may lead to noncompliance with the terms of the grant and questioned costs. Repeat Finding: No. Recommendation: We recommend management enhance existing controls around the review of all expenditures that are used to meet the minimum required matching requirements. Views of responsible officials: HHSC concurs with the finding.
Matching and Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2101TXOACM, 2101TXOAHD, 2101TXOASS 10/1/2020 – 9/30/2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 42 USC 3029(b) Matching funds; percentage limitation (1) For each fiscal year, not less than 25 percent of the non-Federal share of the total expenditures under the State plan which is required by section 3024(d) of this title shall be met from funds from State or local public sources. (2) Funds required to meet the non-Federal share required by section 3024(d)(1)(D) of this title, in amounts exceeding 10 percent of the cost of the services specified in such section 3024(d)(1)(D) of this title, shall be met from State sources. Condition: During our testing of the program’s matching requirements, we noted the following: HHSC’s required match under 42 USC 3029(b)(1) for the fiscal year 2021 grant, which ended on September 30, 2023, was $979,430. State administration expenditures totaled $3,917,721, of which 25%, or 979,430 must be from non-Federal sources. HHSC provided a population of $1,206,534 of administration expenditures paid from non-Federal sources used to meet the matching requirement. Of this amount, audit procedures included testing 159 expenditures, totaling $771,585 that were paid from non-Federal sources used to meet the 25% matching requirement. We noted that 134 of the expenditures, totaling $744,159 were not administrative costs incurred by the State. Rather these were amounts paid to subrecipients. Accordingly, allowable non-federal expenditures were $462,376, which is less than the required match amount of $979,430 or 13.6% of the of the cost of state plan administration. HHSC did not meet the matching requirement per 42 USC 3029(b)(1). Additionally, the recipient share of expenditures (line j) and the remaining recipient share to be provided (line k) on the corresponding SF_x0002_425 report for 2101TXOASS was incorrectly reported. HHSC reported the recipient share of expenditures of $7,452,949; however, allowable non-federal expenditures were only $6,708,790. HHSC calculates its required recipient share of expenditures related to the state and Area Agencies on Aging (AAA’s) costs of administration of area plans and reports it on line i of the SF-425 report. For the fiscal year 2021 grant, we noted that while the match amount was met, the required match as reported on the SF-425 was calculated incorrectly as follows: See chart or table in the Schedule of Findings and Questioned Costs. HHSC’s required match under 42 USC 3029(b)(2) for the fiscal year 2021 grant, which ended on September 30, 2023, was $11,355,969. Of this amount, $3,785,323 was required to be funded from state sources, while the remaining $7,570,646, would be met by amounts paid by the AAA’s. HHSC provided a calculation of $30,107,759 of expenditures incurred to meet the AAA portion of the requirement. However, CLA was unable to substantiate that amount based on supporting documentation as final expenditures submitted by the AAA’s had been revised, however, HHSC did not revise their calculations. Questioned costs: Unknown Context: See “Condition.” Cause: Management calculates matching requirements and identifies actual expenditures to meet these requirements. For the exceptions noted for 42 USC 3029(b)(1), management failed to exclude unallowable expenditures when identifying expenditures incurred to meet the matching requirements. For the exception noted for 42 USC 3029(b)(2), management did not revise the matching calculation based on final amounts received from the AAA’s. Effect: Failure to meet matching requirements may result in a reduction in federal funding. Furthermore, failure to calculate, review, and approve final matching expenditures may lead to noncompliance with the terms of the grant and questioned costs. Repeat Finding: No. Recommendation: We recommend management enhance existing controls around the review of all expenditures that are used to meet the minimum required matching requirements. Views of responsible officials: HHSC concurs with the finding.
Matching and Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2101TXOACM, 2101TXOAHD, 2101TXOASS 10/1/2020 – 9/30/2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 42 USC 3029(b) Matching funds; percentage limitation (1) For each fiscal year, not less than 25 percent of the non-Federal share of the total expenditures under the State plan which is required by section 3024(d) of this title shall be met from funds from State or local public sources. (2) Funds required to meet the non-Federal share required by section 3024(d)(1)(D) of this title, in amounts exceeding 10 percent of the cost of the services specified in such section 3024(d)(1)(D) of this title, shall be met from State sources. Condition: During our testing of the program’s matching requirements, we noted the following: HHSC’s required match under 42 USC 3029(b)(1) for the fiscal year 2021 grant, which ended on September 30, 2023, was $979,430. State administration expenditures totaled $3,917,721, of which 25%, or 979,430 must be from non-Federal sources. HHSC provided a population of $1,206,534 of administration expenditures paid from non-Federal sources used to meet the matching requirement. Of this amount, audit procedures included testing 159 expenditures, totaling $771,585 that were paid from non-Federal sources used to meet the 25% matching requirement. We noted that 134 of the expenditures, totaling $744,159 were not administrative costs incurred by the State. Rather these were amounts paid to subrecipients. Accordingly, allowable non-federal expenditures were $462,376, which is less than the required match amount of $979,430 or 13.6% of the of the cost of state plan administration. HHSC did not meet the matching requirement per 42 USC 3029(b)(1). Additionally, the recipient share of expenditures (line j) and the remaining recipient share to be provided (line k) on the corresponding SF_x0002_425 report for 2101TXOASS was incorrectly reported. HHSC reported the recipient share of expenditures of $7,452,949; however, allowable non-federal expenditures were only $6,708,790. HHSC calculates its required recipient share of expenditures related to the state and Area Agencies on Aging (AAA’s) costs of administration of area plans and reports it on line i of the SF-425 report. For the fiscal year 2021 grant, we noted that while the match amount was met, the required match as reported on the SF-425 was calculated incorrectly as follows: See chart or table in the Schedule of Findings and Questioned Costs. HHSC’s required match under 42 USC 3029(b)(2) for the fiscal year 2021 grant, which ended on September 30, 2023, was $11,355,969. Of this amount, $3,785,323 was required to be funded from state sources, while the remaining $7,570,646, would be met by amounts paid by the AAA’s. HHSC provided a calculation of $30,107,759 of expenditures incurred to meet the AAA portion of the requirement. However, CLA was unable to substantiate that amount based on supporting documentation as final expenditures submitted by the AAA’s had been revised, however, HHSC did not revise their calculations. Questioned costs: Unknown Context: See “Condition.” Cause: Management calculates matching requirements and identifies actual expenditures to meet these requirements. For the exceptions noted for 42 USC 3029(b)(1), management failed to exclude unallowable expenditures when identifying expenditures incurred to meet the matching requirements. For the exception noted for 42 USC 3029(b)(2), management did not revise the matching calculation based on final amounts received from the AAA’s. Effect: Failure to meet matching requirements may result in a reduction in federal funding. Furthermore, failure to calculate, review, and approve final matching expenditures may lead to noncompliance with the terms of the grant and questioned costs. Repeat Finding: No. Recommendation: We recommend management enhance existing controls around the review of all expenditures that are used to meet the minimum required matching requirements. Views of responsible officials: HHSC concurs with the finding.
Matching and Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2101TXOACM, 2101TXOAHD, 2101TXOASS 10/1/2020 – 9/30/2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 42 USC 3029(b) Matching funds; percentage limitation (1) For each fiscal year, not less than 25 percent of the non-Federal share of the total expenditures under the State plan which is required by section 3024(d) of this title shall be met from funds from State or local public sources. (2) Funds required to meet the non-Federal share required by section 3024(d)(1)(D) of this title, in amounts exceeding 10 percent of the cost of the services specified in such section 3024(d)(1)(D) of this title, shall be met from State sources. Condition: During our testing of the program’s matching requirements, we noted the following: HHSC’s required match under 42 USC 3029(b)(1) for the fiscal year 2021 grant, which ended on September 30, 2023, was $979,430. State administration expenditures totaled $3,917,721, of which 25%, or 979,430 must be from non-Federal sources. HHSC provided a population of $1,206,534 of administration expenditures paid from non-Federal sources used to meet the matching requirement. Of this amount, audit procedures included testing 159 expenditures, totaling $771,585 that were paid from non-Federal sources used to meet the 25% matching requirement. We noted that 134 of the expenditures, totaling $744,159 were not administrative costs incurred by the State. Rather these were amounts paid to subrecipients. Accordingly, allowable non-federal expenditures were $462,376, which is less than the required match amount of $979,430 or 13.6% of the of the cost of state plan administration. HHSC did not meet the matching requirement per 42 USC 3029(b)(1). Additionally, the recipient share of expenditures (line j) and the remaining recipient share to be provided (line k) on the corresponding SF_x0002_425 report for 2101TXOASS was incorrectly reported. HHSC reported the recipient share of expenditures of $7,452,949; however, allowable non-federal expenditures were only $6,708,790. HHSC calculates its required recipient share of expenditures related to the state and Area Agencies on Aging (AAA’s) costs of administration of area plans and reports it on line i of the SF-425 report. For the fiscal year 2021 grant, we noted that while the match amount was met, the required match as reported on the SF-425 was calculated incorrectly as follows: See chart or table in the Schedule of Findings and Questioned Costs. HHSC’s required match under 42 USC 3029(b)(2) for the fiscal year 2021 grant, which ended on September 30, 2023, was $11,355,969. Of this amount, $3,785,323 was required to be funded from state sources, while the remaining $7,570,646, would be met by amounts paid by the AAA’s. HHSC provided a calculation of $30,107,759 of expenditures incurred to meet the AAA portion of the requirement. However, CLA was unable to substantiate that amount based on supporting documentation as final expenditures submitted by the AAA’s had been revised, however, HHSC did not revise their calculations. Questioned costs: Unknown Context: See “Condition.” Cause: Management calculates matching requirements and identifies actual expenditures to meet these requirements. For the exceptions noted for 42 USC 3029(b)(1), management failed to exclude unallowable expenditures when identifying expenditures incurred to meet the matching requirements. For the exception noted for 42 USC 3029(b)(2), management did not revise the matching calculation based on final amounts received from the AAA’s. Effect: Failure to meet matching requirements may result in a reduction in federal funding. Furthermore, failure to calculate, review, and approve final matching expenditures may lead to noncompliance with the terms of the grant and questioned costs. Repeat Finding: No. Recommendation: We recommend management enhance existing controls around the review of all expenditures that are used to meet the minimum required matching requirements. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – Financial Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster ALN: 93.044 93.045 93.053 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXOACM 10/1/2021 – 9/30/2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.328(c), the recipient or subrecipient must submit financial reports as required by the Federal award. Per 2 CFR 200.302(b)(2), the recipient's and subrecipient's financial management system must provide for the following: accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements in §§ 200.328 and 200.329. Condition: Audit procedures included a sample of six SF-425 reports submitted during the fiscal year. For the March 31, 2024, report for the 2201TXOACM award, audit procedures included comparing the reported amounts to the general ledger. We noted the following variances: See chart or table in the Schedule of Findings and Questioned Costs. Questioned costs: None. Context: See “Condition.” Cause: Amounts in the supporting general ledger documentation were accurate. However, the corresponding line items on the SF-425 report were not reported accurately. Management did not revise the March 31, 2024, report as the report is cumulative and the final report for the 2201TXOACM grant will include the corrected amounts. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: No. Recommendation: We recommend management reconcile all amounts reported on the SF-425 reports to the general ledger or other supporting documentation to ensure completeness and accuracy prior to submission. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Reporting – FFATA Subawards Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster Temporary Assistance for Needy Families (TANF) Social Services Block Grant Opioid STR Block Grants for Community Mental Health Services Block Grants for Substance Abuse, Prevention, Treatment and Recovery Services ALN: 93.044, 93.045, 93.053 93.558 93.667 93.788 93.958 93.959 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Aging Cluster 2101TXOACM, 2101TXOAHD, 2101TXOANS, 2101TXOASS 2201TXOACM, 2201TXOAHD, 2201TXOANS, 2201TXOASS, 2301TXOACM, 2301TXOAHD, 2301TXOANS, 2301TXOASS, 2401TXOACM, 2401TXOAHD, 2401TXOANS, 2401TXOASS October 1, 2020 – September 30, 2023, October 1, 2021 – September 30, 2024, October 1, 2022 – September 30, 2024, October 1, 2022 – September 30, 2025 and October 1, 2023 – September 30, 2025 TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 Social Services Block Grant 2201TXSOSR, 2301TXSOSR and 2401TXSOSR October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024 and October 1, 2023 – September 30, 2025 Opioid STR 6H79TI083288 and 5H79TI085747 September 30, 2020 – September 29, 2023, September 30, 2022 – September 29, 2024 Block Grants for Community Mental Health Services 6B09SM083999, 1B09SM085994, 6B09SM085994, 1B09SM087322, 1B09SM087345, 6B09SM087345, 1B09SM09610, 1B09SM085385, 6B09SM089380, 1B09SM085913, 1B09SM089984 March 15, 2021 – March 14, 2024, October 1, 2021 – September 30, 2023, October 17, 2022 – October 16, 2024, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, September 1, 2021 – September 30, 2025, September 30, 2023 – September 29, 2025, September 30, 2024 – September 29, 2026 Block Grants for Substance Use Prevention, Treatment and Recovery Services 6B08TI084673, 1B08TI085835, 6B08TI085835, 1B08TI083969, 1B08TI084609, 6B08TI085835, 1B08TI087067, 6B08TI083545 October 1, 2021 – September 30, 2023, October 1, 2022 – September 30, 2024, September 1, 2021 – September 30, 2025, October 1, 2022 – September 30, 2024, October 1, 2023 – September 30, 2025, March 15, 2021 – March 15, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109- 282), as amended by Section 6202 of Public Law 110-252, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the last day of the month following the month in which the subaward/subaward amendment obligation was made or the subcontract award/subcontract modification was made. Condition: The HHSC Federal Funds Office (FFO) is responsible for submitting all required subawards in the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). A standard FFATA Reporting template has been created by the FFO that includes all required elements to be submitted. Program departments must complete and submit the template to the FFO for all federal subawards with amounts over $30,000 by the 15th of every month to be included in that month’s submission. Currently, it is the responsibility of the individual program departments to ensure that each obligating action at or over $30,000 is reported in the FFATA Reporting Template no later than the end of the next month in which the obligation was made. Due to system limitations, there is no central tracking of award obligations. Thus, HHSC was unable to provide a population of first-tier subawards of $30,000 or more that were obligated during the fiscal year and required to be submitted in FSRS. Accordingly, we were unable to select a sample and test for internal controls over compliance or compliance. Questioned costs: None. Context: See “Condition.” Cause: CAPPS-FIN, HHSC’s system of record, does not have the capability to track the date of obligation of federal awards. Effect: Failure to report all subawards $30,000 or greater in FSRS will result in noncompliance with terms of the federal grant guidelines. Repeat Finding: 2023-010, 2022-013, 2021-007 Recommendation: HHSC should implement functionality into CAPPS-FIN to track when obligations of federal awards are made so that the agency is able to retrieve a list of all subawards by obligation date in order to monitor compliance with the Federal Funding Accountability and Transparency Act. Views of responsible officials: HHSC concurs with the finding.
Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families (TANF) Social Services Block Grant (SSBG) ALN: 93.558 93.667 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 SSBG 2401TXSOSR October 1, 2023 – September 30, 2025 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.332(a), all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes certain information at the time of the subaward and if any of these data elements change, include the changes in the subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes the subrecipient’s unique entity identifier (UEI). Condition: Audit procedures included a review of subaward agreements for required information. We noted the following instances of noncompliance: Temporary Assistance for Needy Families – The UEI was not included in eight of the eight agreements selected for testing. The start and end dates for the agreements were September 1, 2020 – August 31, 2024. Social Services Block Grant –The UEI was not included in one of the 19 agreements selected for testing. The start and end dates for the agreement was January 1, 2021 – August 31, 2024. Questioned costs: None. Context: See “Condition.” Cause: The current contract review process to ensure all required elements are included per 2 CFR 200 §200.332 prior to execution is not at the correct precision level. Effect: Providing incomplete information to subrecipients may result in inaccurate reporting by the subrecipients and ultimately by HHSC. Repeat Finding: 2023-011 Recommendation: We recommend management enhance existing controls around the review of all subaward agreements to ensure that all pass-through agreements include each of the required elements by 2 CFR §200.332. Views of responsible officials: HHSC concurs with the finding.
Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families (TANF) Social Services Block Grant (SSBG) ALN: 93.558 93.667 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 SSBG 2401TXSOSR October 1, 2023 – September 30, 2025 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.332(a), all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes certain information at the time of the subaward and if any of these data elements change, include the changes in the subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes the subrecipient’s unique entity identifier (UEI). Condition: Audit procedures included a review of subaward agreements for required information. We noted the following instances of noncompliance: Temporary Assistance for Needy Families – The UEI was not included in eight of the eight agreements selected for testing. The start and end dates for the agreements were September 1, 2020 – August 31, 2024. Social Services Block Grant –The UEI was not included in one of the 19 agreements selected for testing. The start and end dates for the agreement was January 1, 2021 – August 31, 2024. Questioned costs: None. Context: See “Condition.” Cause: The current contract review process to ensure all required elements are included per 2 CFR 200 §200.332 prior to execution is not at the correct precision level. Effect: Providing incomplete information to subrecipients may result in inaccurate reporting by the subrecipients and ultimately by HHSC. Repeat Finding: 2023-011 Recommendation: We recommend management enhance existing controls around the review of all subaward agreements to ensure that all pass-through agreements include each of the required elements by 2 CFR §200.332. Views of responsible officials: HHSC concurs with the finding.
Subrecipient Monitoring Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families (TANF) Social Services Block Grant (SSBG) ALN: 93.558 93.667 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: TANF 2301TXTANF, 2301TXTAN3, 2401TXTANF, 2401TXTAN3 October 1, 2022 – September 30, 2023 and October 1, 2023 – September 30, 2024 SSBG 2401TXSOSR October 1, 2023 – September 30, 2025 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.332(a), all pass-through entities must ensure that every subaward is clearly identified to the subrecipient as a subaward and includes certain information at the time of the subaward and if any of these data elements change, include the changes in the subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes the subrecipient’s unique entity identifier (UEI). Condition: Audit procedures included a review of subaward agreements for required information. We noted the following instances of noncompliance: Temporary Assistance for Needy Families – The UEI was not included in eight of the eight agreements selected for testing. The start and end dates for the agreements were September 1, 2020 – August 31, 2024. Social Services Block Grant –The UEI was not included in one of the 19 agreements selected for testing. The start and end dates for the agreement was January 1, 2021 – August 31, 2024. Questioned costs: None. Context: See “Condition.” Cause: The current contract review process to ensure all required elements are included per 2 CFR 200 §200.332 prior to execution is not at the correct precision level. Effect: Providing incomplete information to subrecipients may result in inaccurate reporting by the subrecipients and ultimately by HHSC. Repeat Finding: 2023-011 Recommendation: We recommend management enhance existing controls around the review of all subaward agreements to ensure that all pass-through agreements include each of the required elements by 2 CFR §200.332. Views of responsible officials: HHSC concurs with the finding.
Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Social Services Block Grant Block Grants for Community Mental Health Services ALN: 93.667 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Social Services Block Grant 2401TXSOSR October 1, 2023 – September 30, 2025 Block Grants for Community Mental Health Services 1B09SM085994, 6B09SM085994 October 1, 2021 – September 30, 2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.403(h) cost must be incurred during the approved budget period. The Federal awarding agency is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to § 200.308(e)(3). Condition: For awards with period of performance beginning dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the first month of the award. For awards with period of performance end dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the last month and after the period of performance end date. We noted the following instances of noncompliance: Social Services Block Grant (SSBG) – Audit procedures included testing 40 sampled transactions from projects with period of performance beginning dates during the fiscal year totaling $5,034. Two of the expenditures, totaling $486, were related to costs incurred prior to the period of performance begin date. The Project Period Start Date per the grant award was October 1, 2023, however costs were incurred on September 6, 2023 and September 11, 2023. Block Grants for Community Mental Health Services (MHBG) – Audit procedures included testing 40 sampled transactions, totaling $1,695,512, from projects with period of performance end dates during the fiscal year for which the obligation had not been paid as of the end of the period of performance. Twelve of the expenditures, totaling $312,929, were not paid within 120 days of the period of performance end date, which is the allowed time period to liquidate obligations. The required liquidation date was December 29, 2023; however, these obligations were paid between January 2, 2024 and April 11, 2024. Questioned costs: Social Services Block Grant: $486 Block Grants for Community Mental Health Services: $312,929 Context: See “Condition.” Cause: The two exceptions for SSBG were related to travel costs where the employee’s supervisor approved the transaction, which was coded to the incorrect grant. For the exceptions noted in the liquidation period testing for MHBG, the late payments are due to the HHSC’s reconciliation and closeout process not being performed in a timely manner. Effect: Ineffective internal controls may result in questioned costs and noncompliance with the terms of the grant. In addition, costs paid with non-federal sources remain in the population which is being included on the schedule of federal expenditures (SEFA) for the current fiscal year. Repeat Finding: 2023-016 Recommendation: HHSC should provide additional training over its review process to ensure that reviewers are verifying that transactions are posted to the proper grant. Additionally, HHSC should verify that all obligations incurred are liquidated during the closeout process and adjustments are not made subsequent to closeout. Views of responsible officials: HHSC concurs with the finding.
Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Social Services Block Grant Block Grants for Community Mental Health Services ALN: 93.667 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Social Services Block Grant 2401TXSOSR October 1, 2023 – September 30, 2025 Block Grants for Community Mental Health Services 1B09SM085994, 6B09SM085994 October 1, 2021 – September 30, 2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.403(h) cost must be incurred during the approved budget period. The Federal awarding agency is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to § 200.308(e)(3). Condition: For awards with period of performance beginning dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the first month of the award. For awards with period of performance end dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the last month and after the period of performance end date. We noted the following instances of noncompliance: Social Services Block Grant (SSBG) – Audit procedures included testing 40 sampled transactions from projects with period of performance beginning dates during the fiscal year totaling $5,034. Two of the expenditures, totaling $486, were related to costs incurred prior to the period of performance begin date. The Project Period Start Date per the grant award was October 1, 2023, however costs were incurred on September 6, 2023 and September 11, 2023. Block Grants for Community Mental Health Services (MHBG) – Audit procedures included testing 40 sampled transactions, totaling $1,695,512, from projects with period of performance end dates during the fiscal year for which the obligation had not been paid as of the end of the period of performance. Twelve of the expenditures, totaling $312,929, were not paid within 120 days of the period of performance end date, which is the allowed time period to liquidate obligations. The required liquidation date was December 29, 2023; however, these obligations were paid between January 2, 2024 and April 11, 2024. Questioned costs: Social Services Block Grant: $486 Block Grants for Community Mental Health Services: $312,929 Context: See “Condition.” Cause: The two exceptions for SSBG were related to travel costs where the employee’s supervisor approved the transaction, which was coded to the incorrect grant. For the exceptions noted in the liquidation period testing for MHBG, the late payments are due to the HHSC’s reconciliation and closeout process not being performed in a timely manner. Effect: Ineffective internal controls may result in questioned costs and noncompliance with the terms of the grant. In addition, costs paid with non-federal sources remain in the population which is being included on the schedule of federal expenditures (SEFA) for the current fiscal year. Repeat Finding: 2023-016 Recommendation: HHSC should provide additional training over its review process to ensure that reviewers are verifying that transactions are posted to the proper grant. Additionally, HHSC should verify that all obligations incurred are liquidated during the closeout process and adjustments are not made subsequent to closeout. Views of responsible officials: HHSC concurs with the finding.
Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Social Services Block Grant Block Grants for Community Mental Health Services ALN: 93.667 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Social Services Block Grant 2401TXSOSR October 1, 2023 – September 30, 2025 Block Grants for Community Mental Health Services 1B09SM085994, 6B09SM085994 October 1, 2021 – September 30, 2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.403(h) cost must be incurred during the approved budget period. The Federal awarding agency is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to § 200.308(e)(3). Condition: For awards with period of performance beginning dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the first month of the award. For awards with period of performance end dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the last month and after the period of performance end date. We noted the following instances of noncompliance: Social Services Block Grant (SSBG) – Audit procedures included testing 40 sampled transactions from projects with period of performance beginning dates during the fiscal year totaling $5,034. Two of the expenditures, totaling $486, were related to costs incurred prior to the period of performance begin date. The Project Period Start Date per the grant award was October 1, 2023, however costs were incurred on September 6, 2023 and September 11, 2023. Block Grants for Community Mental Health Services (MHBG) – Audit procedures included testing 40 sampled transactions, totaling $1,695,512, from projects with period of performance end dates during the fiscal year for which the obligation had not been paid as of the end of the period of performance. Twelve of the expenditures, totaling $312,929, were not paid within 120 days of the period of performance end date, which is the allowed time period to liquidate obligations. The required liquidation date was December 29, 2023; however, these obligations were paid between January 2, 2024 and April 11, 2024. Questioned costs: Social Services Block Grant: $486 Block Grants for Community Mental Health Services: $312,929 Context: See “Condition.” Cause: The two exceptions for SSBG were related to travel costs where the employee’s supervisor approved the transaction, which was coded to the incorrect grant. For the exceptions noted in the liquidation period testing for MHBG, the late payments are due to the HHSC’s reconciliation and closeout process not being performed in a timely manner. Effect: Ineffective internal controls may result in questioned costs and noncompliance with the terms of the grant. In addition, costs paid with non-federal sources remain in the population which is being included on the schedule of federal expenditures (SEFA) for the current fiscal year. Repeat Finding: 2023-016 Recommendation: HHSC should provide additional training over its review process to ensure that reviewers are verifying that transactions are posted to the proper grant. Additionally, HHSC should verify that all obligations incurred are liquidated during the closeout process and adjustments are not made subsequent to closeout. Views of responsible officials: HHSC concurs with the finding.
Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Social Services Block Grant Block Grants for Community Mental Health Services ALN: 93.667 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: Social Services Block Grant 2401TXSOSR October 1, 2023 – September 30, 2025 Block Grants for Community Mental Health Services 1B09SM085994, 6B09SM085994 October 1, 2021 – September 30, 2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR 200.403(h) cost must be incurred during the approved budget period. The Federal awarding agency is authorized, at its discretion, to waive prior written approvals to carry forward unobligated balances to subsequent budget periods pursuant to § 200.308(e)(3). Condition: For awards with period of performance beginning dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the first month of the award. For awards with period of performance end dates during the fiscal year, audit procedures included testing transactions posted to the general ledger during the last month and after the period of performance end date. We noted the following instances of noncompliance: Social Services Block Grant (SSBG) – Audit procedures included testing 40 sampled transactions from projects with period of performance beginning dates during the fiscal year totaling $5,034. Two of the expenditures, totaling $486, were related to costs incurred prior to the period of performance begin date. The Project Period Start Date per the grant award was October 1, 2023, however costs were incurred on September 6, 2023 and September 11, 2023. Block Grants for Community Mental Health Services (MHBG) – Audit procedures included testing 40 sampled transactions, totaling $1,695,512, from projects with period of performance end dates during the fiscal year for which the obligation had not been paid as of the end of the period of performance. Twelve of the expenditures, totaling $312,929, were not paid within 120 days of the period of performance end date, which is the allowed time period to liquidate obligations. The required liquidation date was December 29, 2023; however, these obligations were paid between January 2, 2024 and April 11, 2024. Questioned costs: Social Services Block Grant: $486 Block Grants for Community Mental Health Services: $312,929 Context: See “Condition.” Cause: The two exceptions for SSBG were related to travel costs where the employee’s supervisor approved the transaction, which was coded to the incorrect grant. For the exceptions noted in the liquidation period testing for MHBG, the late payments are due to the HHSC’s reconciliation and closeout process not being performed in a timely manner. Effect: Ineffective internal controls may result in questioned costs and noncompliance with the terms of the grant. In addition, costs paid with non-federal sources remain in the population which is being included on the schedule of federal expenditures (SEFA) for the current fiscal year. Repeat Finding: 2023-016 Recommendation: HHSC should provide additional training over its review process to ensure that reviewers are verifying that transactions are posted to the proper grant. Additionally, HHSC should verify that all obligations incurred are liquidated during the closeout process and adjustments are not made subsequent to closeout. Views of responsible officials: HHSC concurs with the finding.
Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Social Services Block Grant ALN: 93.667 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2201TXSOSR October 1, 2021 – September 30, 2023 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The 42 USC 1397e requires states and territories to submit to the federal administering agency, the Office of Community Services, an annual Post Expenditure Report no later than six months following the close of the fiscal year. The report includes certain critical key line information including: TANF Funds Transferred into SSBG –Amount reported on this line item should be consistent with the TANF federal financial report (ACF-196R). The Federal Funds Office (FFO) is responsible for the completeness, accuracy, and timely submission of the Post Expenditure Report. Federal Reporting Fiscal Management personnel are responsible for proper reporting and submission of the ACF-196R. Condition: During testing of key line items for the FY2023 Annual Post Expenditure Report submitted in March 2024, we noted that TANF Funds Transferred into SSBG, as reported on the ACF-196R report was $45,104,976, however, the amount reported on the FY2023 Post Expenditure Report was $40,351,905, resulting in a variance of $4,753,071. Questioned costs: None Context: See “Condition.” Cause: FFO did not properly coordinate efforts with the Federal Reporting personnel to ensure the amounts noted on the ACF-196R were consistent with the amount on the Post Expenditure Report. Effect: Improperly designed internal controls over reporting may result in a misstatement of amounts reported on federal reports. Repeat Finding: 2023-013 Recommendation: We recommend the FFO coordinate with the appropriate Federal Reporting Team personnel regarding amounts noted for the TANF Funds Transferred into SSBG to ensure the amount in the Post Expenditure Report matches with the amount in the ACF-196R. Views of responsible officials: HHSC concurs with the finding.
Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Block Grants for Community Mental Health Services ALN: 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: B09SM087345 October 1, 2022 – September 30, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Audit procedures included a sample of 40 general disbursements, totaling $440,324, incurred during the fiscal year. For one general disbursement selected, totaling $7,185, there was no evidence of review and approval of the disbursement prior to payment. Total general disbursements, which excludes salaries and benefits and indirect costs, incurred for the program during the fiscal year was $796,639. Questioned costs: None. Context: See “Condition.” Cause: Management did not retain evidence of the approval for this transaction. Effect: Failure to review expenditure transactions pertinent to a federal award and maintain adequate documentation evidencing review may result in noncompliance with grant terms and conditions as well as payment of unallowed costs. Repeat Finding: No Recommendation: HHSC should enforce policies and procedures to ensure all disbursements are reviewed and approved prior to payment. Views of responsible officials: HHSC concurs with the finding.
Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Block Grants for Community Mental Health Services ALN: 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: B09SM087345 October 1, 2022 – September 30, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Audit procedures included a sample of 40 general disbursements, totaling $440,324, incurred during the fiscal year. For one general disbursement selected, totaling $7,185, there was no evidence of review and approval of the disbursement prior to payment. Total general disbursements, which excludes salaries and benefits and indirect costs, incurred for the program during the fiscal year was $796,639. Questioned costs: None. Context: See “Condition.” Cause: Management did not retain evidence of the approval for this transaction. Effect: Failure to review expenditure transactions pertinent to a federal award and maintain adequate documentation evidencing review may result in noncompliance with grant terms and conditions as well as payment of unallowed costs. Repeat Finding: No Recommendation: HHSC should enforce policies and procedures to ensure all disbursements are reviewed and approved prior to payment. Views of responsible officials: HHSC concurs with the finding.
Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Block Grants for Community Mental Health Services ALN: 93.958 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: B09SM087345 October 1, 2022 – September 30, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Audit procedures included a sample of 40 general disbursements, totaling $440,324, incurred during the fiscal year. For one general disbursement selected, totaling $7,185, there was no evidence of review and approval of the disbursement prior to payment. Total general disbursements, which excludes salaries and benefits and indirect costs, incurred for the program during the fiscal year was $796,639. Questioned costs: None. Context: See “Condition.” Cause: Management did not retain evidence of the approval for this transaction. Effect: Failure to review expenditure transactions pertinent to a federal award and maintain adequate documentation evidencing review may result in noncompliance with grant terms and conditions as well as payment of unallowed costs. Repeat Finding: No Recommendation: HHSC should enforce policies and procedures to ensure all disbursements are reviewed and approved prior to payment. Views of responsible officials: HHSC concurs with the finding.
Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Eligibility, Reporting, Special Tests and Provisions – Provider Eligibility – Information Technology – Vendor Management Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medicaid Cluster ALN: 93.775, 93.777, 93.778 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2305TXIMPL, 2305TX5MAP, 2405TXIMPL, 2405TX5000, 2405TX5MAP, October 1, 2022 – September 30, 2023, July 1, 2023 – September 30, 2023, October 1, 2023 – September 30, 2024, October 1, 2023 – June 30, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: HHSC contracted with Conduent State Healthcare, LLC (Conduent Pharmacy) to administer the Vendor Drug Program for the Medicaid Cluster through March 2024. Conduent Pharmacy performs services related to processing pharmacy claims and managing the rebate administration function for the HHSC Vendor Drug Program. HHSC utilizes the Conduent Drug Rebate Administration Management (DRAMS) application to validate and bill drug manufacturers for rebates and the Open Systems Plus (OS+) application to construct drug coverage rules related to payment for pharmacy services. A Service Organization Controls 1 (SOC 1) Type 2 report validates the suitability of design and operating effectiveness of the controls to meet the designed control objectives of internal controls over financial reporting. This report is critical to ensure that the service organization has the required controls infrastructure in place to process HHSC’s data. Testing of controls infrastructure includes, but is not limited to, physical security, logical controls, and change management. We noted that the SOC 1 Type 2 report for the third-party administrator for DRAMS and OS+ was not completed for the seven month period during which the applications were being utilized. As such, HHSC was unable to evaluate whether reasonable controls were in place over this third-party service to determine if they are secure, accurate and available, and support processing integrity during the period in which the applications were being used. Questioned costs: None Context: See “Condition.” Cause: DRAMS and OS+ were used to manage the Vendor Drug Program through March 2024, after which HHSC moved to a different third-party administrator. Despite HHSC’s request, Conduent did not engage an auditor to complete the SOC 1 Type 2 report for the period September 1, 2023 – March 30, 2024. Effect: Failure to obtain and review findings and complementary user entity controls within a third-party vendor’s SOC 1 Type 2 report may result in inappropriate reliance on the third-party vendor’s internal controls, which could result in noncompliance. Repeat finding: No Recommendation: HHSC should strengthen its vendor management policies to ensure SOC 1 Type 2 reports are completed and received in a timeframe that allows management to determine if the third-party services are secure, accurate and available, and support processing integrity for the fiscal year. This may be accomplished by including clauses into vendor contracts to require SOC 1 Type 2 reports or allow HHSC rights to audit if alternative procedures are necessary. Views of responsible officials: HHSC concurs with the finding.
Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Eligibility, Reporting, Special Tests and Provisions – Provider Eligibility – Information Technology – Vendor Management Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medicaid Cluster ALN: 93.775, 93.777, 93.778 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2305TXIMPL, 2305TX5MAP, 2405TXIMPL, 2405TX5000, 2405TX5MAP, October 1, 2022 – September 30, 2023, July 1, 2023 – September 30, 2023, October 1, 2023 – September 30, 2024, October 1, 2023 – June 30, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: HHSC contracted with Conduent State Healthcare, LLC (Conduent Pharmacy) to administer the Vendor Drug Program for the Medicaid Cluster through March 2024. Conduent Pharmacy performs services related to processing pharmacy claims and managing the rebate administration function for the HHSC Vendor Drug Program. HHSC utilizes the Conduent Drug Rebate Administration Management (DRAMS) application to validate and bill drug manufacturers for rebates and the Open Systems Plus (OS+) application to construct drug coverage rules related to payment for pharmacy services. A Service Organization Controls 1 (SOC 1) Type 2 report validates the suitability of design and operating effectiveness of the controls to meet the designed control objectives of internal controls over financial reporting. This report is critical to ensure that the service organization has the required controls infrastructure in place to process HHSC’s data. Testing of controls infrastructure includes, but is not limited to, physical security, logical controls, and change management. We noted that the SOC 1 Type 2 report for the third-party administrator for DRAMS and OS+ was not completed for the seven month period during which the applications were being utilized. As such, HHSC was unable to evaluate whether reasonable controls were in place over this third-party service to determine if they are secure, accurate and available, and support processing integrity during the period in which the applications were being used. Questioned costs: None Context: See “Condition.” Cause: DRAMS and OS+ were used to manage the Vendor Drug Program through March 2024, after which HHSC moved to a different third-party administrator. Despite HHSC’s request, Conduent did not engage an auditor to complete the SOC 1 Type 2 report for the period September 1, 2023 – March 30, 2024. Effect: Failure to obtain and review findings and complementary user entity controls within a third-party vendor’s SOC 1 Type 2 report may result in inappropriate reliance on the third-party vendor’s internal controls, which could result in noncompliance. Repeat finding: No Recommendation: HHSC should strengthen its vendor management policies to ensure SOC 1 Type 2 reports are completed and received in a timeframe that allows management to determine if the third-party services are secure, accurate and available, and support processing integrity for the fiscal year. This may be accomplished by including clauses into vendor contracts to require SOC 1 Type 2 reports or allow HHSC rights to audit if alternative procedures are necessary. Views of responsible officials: HHSC concurs with the finding.
Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Eligibility, Reporting, Special Tests and Provisions – Provider Eligibility – Information Technology – Vendor Management Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medicaid Cluster ALN: 93.775, 93.777, 93.778 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Number and Period: 2305TXIMPL, 2305TX5MAP, 2405TXIMPL, 2405TX5000, 2405TX5MAP, October 1, 2022 – September 30, 2023, July 1, 2023 – September 30, 2023, October 1, 2023 – September 30, 2024, October 1, 2023 – June 30, 2024 Statistically Valid Sample: No, and not intended to be a statistically valid sample Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per 2 CFR 200.303(a), Health and Human Services Commission (HHSC) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that it is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: HHSC contracted with Conduent State Healthcare, LLC (Conduent Pharmacy) to administer the Vendor Drug Program for the Medicaid Cluster through March 2024. Conduent Pharmacy performs services related to processing pharmacy claims and managing the rebate administration function for the HHSC Vendor Drug Program. HHSC utilizes the Conduent Drug Rebate Administration Management (DRAMS) application to validate and bill drug manufacturers for rebates and the Open Systems Plus (OS+) application to construct drug coverage rules related to payment for pharmacy services. A Service Organization Controls 1 (SOC 1) Type 2 report validates the suitability of design and operating effectiveness of the controls to meet the designed control objectives of internal controls over financial reporting. This report is critical to ensure that the service organization has the required controls infrastructure in place to process HHSC’s data. Testing of controls infrastructure includes, but is not limited to, physical security, logical controls, and change management. We noted that the SOC 1 Type 2 report for the third-party administrator for DRAMS and OS+ was not completed for the seven month period during which the applications were being utilized. As such, HHSC was unable to evaluate whether reasonable controls were in place over this third-party service to determine if they are secure, accurate and available, and support processing integrity during the period in which the applications were being used. Questioned costs: None Context: See “Condition.” Cause: DRAMS and OS+ were used to manage the Vendor Drug Program through March 2024, after which HHSC moved to a different third-party administrator. Despite HHSC’s request, Conduent did not engage an auditor to complete the SOC 1 Type 2 report for the period September 1, 2023 – March 30, 2024. Effect: Failure to obtain and review findings and complementary user entity controls within a third-party vendor’s SOC 1 Type 2 report may result in inappropriate reliance on the third-party vendor’s internal controls, which could result in noncompliance. Repeat finding: No Recommendation: HHSC should strengthen its vendor management policies to ensure SOC 1 Type 2 reports are completed and received in a timeframe that allows management to determine if the third-party services are secure, accurate and available, and support processing integrity for the fiscal year. This may be accomplished by including clauses into vendor contracts to require SOC 1 Type 2 reports or allow HHSC rights to audit if alternative procedures are necessary. Views of responsible officials: HHSC concurs with the finding.