Finding 1168299 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-07

AI Summary

  • Core Issue: Interfaith Ministries failed to maintain required documentation in client files, specifically the acknowledgment of receipt for debit cards.
  • Impacted Requirements: This noncompliance affects the completeness of client files and adherence to internal control procedures mandated by the Texas Office for Refugees.
  • Recommended Follow-Up: Reinforce the importance of following established policies to ensure all necessary documentation, like debit card receipts, is properly filed.

Finding Text

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.566, Passed through Texas Office for Refugees, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Contract #’s: FFY2024-27947V-CMA and FFY2025-27947V-CMA, Contract years: 10/23-09/24 and 10/24-09/25. Criteria: Allowable Costs – Interfaith Ministries is responsible for having internal control procedures to ensure the completeness of required documents in the client files. Condition and context: Interfaith Ministries’ policies and procedures for verifying the completeness of documentation includes ensuring the acknowledgement of receipt of a debit card by the client is maintained in the client file. In a sample of 33 client files tested for refugee cash assistance program, we noted one client who received a debit card in February 2025 did not have the acknowledgement receipt in the client file. Cause: The finding occurred as a result of Interfaith Ministries not following its internal control procedures to ensure that client files are complete including the client acknowledgement of receipt of a debit card. Effect: Failure to follow internal control procedures could result in incomplete client files, and noncompliance with procedures required by the Texas Office for Refugees (TXOR). Recommendation: Emphasize adherence to established policies and procedures to ensure acknowledgement of receipt of a debit card by the client is maintained in the client file. Views of responsible officials and planned corrective action: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Assistance Listing #93.566, Passed through Texas Office for Refugees, Refugee and Entrant Assistance State/Replacement Designee Administered Programs, Contract #’s: FFY2024-27947V-CMA and FFY2025-27947V-CMA, Contract years: 10/23-09/24 and 10/24-09/25. Condition and context: Interfaith Ministries’ policies and procedures for verifying the completeness of documentation includes ensuring the acknowledgement of receipt of a debit card by the client is maintained in the client file. In a sample of 33 client files tested for refugee cash assistance program, we noted one client who received a debit card in February 2025 did not have the acknowledgement receipt in the client file. Recommendation: Emphasize adherence to established policies and procedures to ensure acknowledgement of receipt of a debit card by the client is maintained in the client file. Planned corrective action: With the implementation of the Refugee Cash Assistance (RCA) Debit Card program by TXOR, our organization established the policy that client case files must contain a copy of the Debit Card Activation Page with the client’s signature and the date the card was delivered to the client as required by TXOR. Our program team will re-emphasize these policies through additional staff training to ensure compliance with the established policy and procedures for the RCA Debit Card program. Additionally, our compliance department will establish procedures to perform periodic reviews to ensure that the client files are complete. Responsible officer: Ali Al Sudani, Chief Program Officer and Terry Merriett, VP of Quality Assurance & Compliance. Estimated completion date: December 1, 2025.

Categories

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1168295 2025-001
    Material Weakness Repeat
  • 1168296 2025-001
    Material Weakness Repeat
  • 1168297 2025-001
    Material Weakness Repeat
  • 1168298 2025-002
    Material Weakness Repeat
  • 1168300 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $3.08M
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $2.47M
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $1.57M
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $1.56M
93.667 SOCIAL SERVICES BLOCK GRANT $642,583
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $594,197
94.006 AMERICORPS STATE AND NATIONAL 94.006 $287,670
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $247,580
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $163,602
97.067 HOMELAND SECURITY GRANT PROGRAM $24,000