FAC Explorer

Finding 1210833 (2025-004)

Material Weakness Repeat Finding
Requirement
EM
Questioned Costs
-
Year
2025
Accepted
2026-04-29
Audit: 400108
Organization: City of Austin (TX)
Auditor: DELOITTE & TOUCHE LLP

AI Summary

  • Core Issue: The City failed to review Single Audit Reports for some subrecipients, risking non-compliance with eligibility and monitoring requirements.
  • Impacted Requirements: Pass-through entities must verify subrecipients' audits and ensure corrective actions are taken on any findings affecting subawards.
  • Recommended Follow-up: Austin Public Health should enhance controls to ensure all Single Audit Reports are reviewed for compliance impacts and proper disclosure of funding.

Finding Text

Finding 2025-004: – Finding of Significant Deficiency in Internal Control over Eligibility and Subrecipient Monitoring and Finding of Non-compliance ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA) Award #TXH22-F004, TXH23-F004 and TXH24-F004, 2025, U.S. Department of Housing and Urban Development ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS Award # 5 UT8HA33918-05-00 and 5 UT8HA33918-06-00, 2025, U.S. Department of Health & Human Services Criteria: Pass-through entities have a responsibility to verify that subrecipients are audited as required and ensure the subrecipient takes corrective action on any single audit findings related to the subaward or other audit findings that will impact their ability to meet the objectives of the subaward. Condition: ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA): • The City utilized 4 subrecipients to determine eligibility for the participants. Neither the City nor the City’s third-party vendor reviewed the respective Single Audit report for 1 of the 4 subrecipients to ensure that the City’s subaward was appropriately included within the subrecipient’s Single Audit Report. ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS (Ryan White): • Neither the City nor the City’s third-party vendor reviewed the Single Audit Report for 1 out of 5 subrecipients to ensure the subrecipient is taking corrective action on a single audit finding related to the program. Cause: The City monitors subrecipients under the HOPWA and Ryan White programs by utilizing a third-party vendor. However, the City did not ensure that the scope of work provided by the third-party vendor was sufficient to meet the subrecipient monitoring compliance requirements related to the review of single audits. Effects: Failure to review the Single Audit Reports of subrecipients could result in the City missing identified issues like internal control deficiencies or instances of noncompliance, which may result in the early termination of the grant award, non-reimbursement of grant funding, or cessation of future funding. Questioned Costs: None. Context: While the City has a control in place to ensure Single Audit Reports were submitted, neither the City nor the third-party vendor reviewed the most recently available Single Audit Reports of its subrecipients to ensure the City’s subaward agreements were appropriately included, and whether there were any audit findings requiring corrective action. ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA): • 1 out of 4 subrecipients’ Single Audit Reports was not reviewed to ensure that the City’s subaward was appropriately included within the Schedule of Expenditures of Federal Awards. Within this subrecipient’s Single Audit Report, the subrecipient did not list the City as a grantor for the HOPWA program under ALN 14.241, despite having expenditures incurred during the fiscal year under audit. ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS (Ryan White): • 1 out of 5 subrecipients’ Single Audit Reports were not reviewed to ensure the subrecipient had implemented corrective action on related audit findings. Within this subrecipient’s Single Audit Report, there was a reportable audit finding related to the same ALN as the Ryan White program. While the finding was not related to the City’s subaward under the Ryan White program, the finding could potentially impact the subrecipient’s compliance with the City’s subaward. Repeat Finding from Prior Year: No Recommendations: Austin Public Health grant management should refine their controls to ensure that Single Audit Reports are reviewed for audit findings that have a potential to impact compliance with the City’s subawards, and to ensure the pass-through funds provided to the subrecipient have been appropriately disclosed on the subrecipient’s Schedule of Expenditures of Federal Awards. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.

Corrective Action Plan

Finding 2025-004: Finding of Significant Deficiency in Internal Control over Eligibility and Subrecipient Monitoring and Finding of Non-compliance ALN 14.241 Housing Opportunities for Persons with AIDS (HOPWA) Award #TXH22-F004, TXH23-F004 and TXH24-F004, 2025, U.S. Department of Housing and Urban Development ALN 93.686 Ending the HIV Epidemic: A Plan for America - Ryan White HIV/AIDS Award # 5 UT8HA33918-05-00 and 5 UT8HA33918-06-00, 2025, U.S. Department of Health & Human Services Contact Person – Adrienne Sturrup, Director, Austin Public Health Management Response – Concur. Management has taken the following steps to address this finding: 1. Process Improvement: The department is: • reviewing the interlocal agreement to update the language for greater clarity on requirements. • mapping the process for requesting, receiving and requiring financial audits and single audits. • identifying the appropriate party to review and follow-up on any areas of concern identified in a Single Audit. 2. Internal Control: Periodic supervisory verification that audits are obtained and reviewed. 3. Additional training: • After mapping out the process for tracking and requiring financial and single audits, training will be provided to staff and vendors. • If department staff will be reviewing and following-up on financial and single audits, appropriate level of staff and aligned trainings will be identified and provided. Estimated Completion – September 30, 2026.

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1210817 2025-004
    Material Weakness Repeat
  • 1210818 2025-004
    Material Weakness Repeat
  • 1210819 2025-004
    Material Weakness Repeat
  • 1210820 2025-003
    Material Weakness Repeat
  • 1210821 2025-003
    Material Weakness Repeat
  • 1210822 2025-003
    Material Weakness Repeat
  • 1210823 2025-003
    Material Weakness Repeat
  • 1210824 2025-003
    Material Weakness Repeat
  • 1210825 2025-003
    Material Weakness Repeat
  • 1210826 2025-003
    Material Weakness Repeat
  • 1210827 2025-003
    Material Weakness Repeat
  • 1210828 2025-002
    Material Weakness Repeat
  • 1210829 2025-002
    Material Weakness Repeat
  • 1210830 2025-002
    Material Weakness Repeat
  • 1210831 2025-004
    Material Weakness Repeat
  • 1210832 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $30.82M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $7.78M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $7.71M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $3.94M
12.U00 Waterloo Greenway-Design and Construction Assistance $3.53M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $2.97M
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $2.60M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $2.56M
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $2.47M
66.468 DRINKING WATER STATE REVOLVING FUND $2.26M
15.916 OUTDOOR RECREATION ACQUISITION, DEVELOPMENT AND PLANNING $2.25M
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $2.13M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.23M
93.686 ENDING THE HIV EPIDEMIC: A PLAN FOR AMERICA — RYAN WHITE HIV/AIDS PROGRAM PARTS A AND B $1.20M
16.922 EQUITABLE SHARING PROGRAM $1.18M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $834,107
93.268 COVID-19 - IMMUNIZATION COOPERATIVE AGREEMENTS $701,914
66.046 CLIMATE POLLUTION REDUCTION GRANTS $613,391
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $572,727
97.036 COVID-19 - DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $563,896
81.086 CONSERVATION RESEARCH AND DEVELOPMENT $534,557
20.940 RECONNECTING COMMUNITIES PILOT (RCP) DISCRETIONARY GRANT PROGRAM $464,802
93.493 CONGRESSIONAL DIRECTIVES $454,472
97.091 HOMELAND SECURITY BIOWATCH PROGRAM $320,670
20.237 MOTOR CARRIER SAFETY ASSISTANCE HIGH PRIORITY ACTIVITIES GRANTS AND COOPERATIVE AGREEMENTS $319,492
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $288,796
93.940 HIV PREVENTION ACTIVITIES HEALTH DEPARTMENT BASED $278,080
81.128 ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM (EECBG) $240,000
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $225,000
14.248 COMMUNITY DEVELOPMENT BLOCK GRANTS SECTION 108 LOAN GUARANTEES $190,936
97.067 HOMELAND SECURITY GRANT PROGRAM $185,863
97.045 COOPERATING TECHNICAL PARTNERS $180,256
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $178,309
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $177,245
93.387 NATIONAL AND STATE TOBACCO CONTROL PROGRAM $167,266
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $161,223
97.137 STATE AND LOCAL CYBERSECURITY GRANT PROGRAM TRIBAL CYBERSECURITY GRANT PROGRAM $153,932
66.202 CONGRESSIONALLY MANDATED PROJECTS $153,035
16.590 GRANTS TO ENCOURAGE ARREST POLICIES AND ENFORCEMENT OF PROTECTION ORDERS PROGRAM $145,735
93.323 COVID-19 - EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $130,744
20.939 SAFE STREETS AND ROADS FOR ALL $127,345
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $122,376
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $104,185
93.823 PUBLIC HEALTH RESPONSE, FORECASTING, AND ANALYTIC CAPACITIES RELATED TO DISEASE OUTBREAKS, EPIDEMICS, AND PANDEMICS $101,518
16.575 CRIME VICTIM ASSISTANCE $97,485
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $95,000
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $87,770
16.742 PAUL COVERDELL FORENSIC SCIENCES IMPROVEMENT GRANT PROGRAM $85,130
14.239 COVID-19 - HOME INVESTMENT PARTNERSHIPS PROGRAM $81,800
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $77,560
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $77,454
21.016 EQUITABLE SHARING $73,647
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $70,933
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $70,000
16.833 NATIONAL SEXUAL ASSAULT KIT INITIATIVE $66,836
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $59,078
16.585 TREATMENT COURT DISCRETIONARY GRANT PROGRAM $57,877
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $49,377
94.006 AMERICORPS STATE AND NATIONAL 94.006 $42,397
10.664 COOPERATIVE FORESTRY ASSISTANCE $42,124
93.421 STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATION’S HEALTH $41,248
93.495 COVID-19 - COMMUNITY HEALTH WORKERS FOR PUBLIC HEALTH RESPONSE AND RESILIENT $40,620
16.817 BYRNE CRIMINAL JUSTICE INNOVATION PROGRAM $31,387
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $24,797
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $24,391
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $22,025
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $22,000
14.023 COMMUNITY DEVELOPMENT BLOCK GRANT- PRO HOUSING COMPETITION $21,890
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $18,946
16.745 CRIMINAL AND JUVENILE JUSTICE AND MENTAL HEALTH COLLABORATION PROGRAM $15,247
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $11,363
16.058 DEMONSTRATION PROGRAM ON TRAUMA-INFORMED, VICTIM CENTERED TRAINING FOR LAW ENFORCEMENT $10,310
93.391 COVID-19 - ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $9,799
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $6,768
93.008 MEDICAL RESERVE CORPS SMALL GRANT PROGRAM $5,795
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $5,000
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $2,090
93.569 COMMUNITY SERVICES BLOCK GRANT $1,428
14.231 COVID-19 - EMERGENCY SOLUTIONS GRANT PROGRAM $951
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $-190
14.401 FAIR HOUSING ASSISTANCE PROGRAM $-582
93.354 COVID-19 - PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $-1,233
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $-29,343