Finding 1157507 (2024-006)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369726
Organization: Katy Christian Ministries (TX)

AI Summary

  • Core Issue: Nine out of 40 clients lacked documentation proving their eligibility for food assistance.
  • Impacted Requirements: KCM must have internal controls to ensure only eligible clients receive assistance, as per federal guidelines.
  • Recommended Follow-Up: Enhance policies and procedures to improve documentation and retention of eligibility determinations.

Finding Text

Finding #2024-006 – Eligibility – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Agriculture, Passed through The Houston Food Bank, Emergency Food Assistance Program – Food Commodities (Food Distribution Cluster), Assistance Listing #: 10.569, Contract Number: 30517, Contract Year: 01/01/24 – 12/31/24. Criteria: Eligibility – KCM is responsible for having internal control procedures over its client intake process to ensure that only eligible clients are provided with food assistance. Condition and context: In a sample of 40 clients served during the year, we noted nine served clients had no documentation to support their eligibility to receive food assistance. Effect: Failure to follow eligibility guidelines could result in the distribution of federal food commodities to ineligible households. Recommendation: Strengthen policies and procedures to ensure the documentation and retention of eligibility determinations. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2024-006 – Eligibility – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Agriculture, Passed through The Houston Food Bank, Emergency Food Assistance Program – Food Commodities (Food Distribution Cluster), Assistance Listing #: 10.569, Contract Number: 30517, Contract Year: 01/01/24 – 12/31/24. Condition and context: In a sample of 40 clients served during the year, we noted nine served clients had no documentation to support their eligibility to receive food assistance. Recommendation: Strengthen policies and procedures to ensure the documentation and retention of eligibility determinations. Planned corrective action: An internal audit performed in January 2025 identified deficiencies in internal controls for the calendar year 2024, primarily due to elevated personnel turnover. In response, corrective measures were implemented in April 2025, including the establishment and documentation of formal internal controls and procedures. New management has assumed oversight responsibilities and is actively monitoring compliance to ensure sustained effectiveness of these controls. Controls have been strengthened to ensure eligibility determinations are properly supported and that support is reviewed and retained. Responsible officer: Virginia Gonzalez, Chief Executive Officer. Estimated completion date: Completed as of April 30, 2025.

Categories

Eligibility Material Weakness

Other Findings in this Audit

  • 1157505 2024-004
    Material Weakness Repeat
  • 1157506 2024-005
    Material Weakness Repeat
  • 1157508 2024-004
    Material Weakness Repeat
  • 1157509 2024-004
    Material Weakness Repeat
  • 1157510 2024-004
    Material Weakness Repeat
  • 1157511 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.569 Emergency Food Assistance Program (food Commodities) $689,031
97.024 Emergency Food and Shelter National Board Program $177,247
16.575 Crime Victim Assistance $160,372
21.027 Coronavirus State and Local Fiscal Recovery Funds $38,239
21.023 Emergency Rental Assistance Program $8,470