Finding 1217294 (2025-003)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2025
Accepted
2026-06-10
Audit: 403455
Organization: Safehaven of Tarrant County (TX)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding compliance with grant period expenses.
  • Impacted Requirements: The Organization failed to ensure that expenses were charged to the correct grant period, violating federal regulations.
  • Recommended Follow-Up: Update the review process to ensure all expenses align with the correct grant period.

Finding Text

Finding 2025-003: Period of Performance – significant deficiency in internal controls over compliance and compliance finding. Continuum of Care Program – 14.267 Criteria: The Organization’s internal control over compliance is to review all expenses to ensure they are charged to the correct grant period. Condition: During period of performance testing for federal grants, for 1 of the 25 transactions, the payroll expense was charged to the wrong grant period. Cause: The control did not identify the billing error. Effect: The Organization charged the wrong grant period. Questioned Costs: None Recommendation: In order to comply with the Uniform Guidance federal regulations, we recommend a review process be updated so that expenses charged to the grant are aligned with the grant period. Management’s Response: See corrective action plan.

Corrective Action Plan

Finding 2025-003: Period of Performance – Significant deficiency in internal controls over compliance and compliance finding. Management Response The agency has added another level of review for Requests for Reimbursement (RFRs) to improve internal controls. Effective 10.01.2025, grant expense charges are processed as follows: 1. Finance Assistant creates grant Request for Reimbursement (RFR). Upon completion of the RFR, theAssistant signs the RFR as completed, then submits completed RFR along with supportingdocumentation to the EVP of Finance. Formerly, the creation of the RFR was being done by the EVP of Finance, with the addition of staff, we were able to relocate those duties to Finance Assistance in the Fall of 2025. 2. The EVP of Finance reviews the RFR for correct calculations and if the appropriate supportingdocumentation is attached. The EVP of Finance signs the RFR, then presents it to the ChiefOperating Officer for final approval. 3. Chief Operating Officer receives RFR from EVP of Finance, reviews RFR and approves for submissionto the Grantor or sends back for corrections. Adding a staff member in the Finance department allowed us to add another level of approval. In addition, notations have been made on all internal grant tracking documents, as to the start of each grant period. A payroll pay calendar is accessible to verify the exact dates covered on a pay period.

Categories

Period of Performance Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1217291 2025-001
    Material Weakness Repeat
  • 1217292 2025-003
    Material Weakness Repeat
  • 1217293 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 CRIME VICTIM ASSISTANCE $2.16M
93.496 FAMILY VIOLENCE PREVENTION AND SERVICES/CULTURALLY SPECIFIC DOMESTIC VIOLENCE AND SEXUAL VIOLENCE SERVICES $224,505
16.736 TRANSITIONAL HOUSING ASSISTANCE FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, STALKING, OR SEXUAL ASSAULT $203,789
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $160,247
14.267 CONTINUUM OF CARE PROGRAM $141,733
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $120,673
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $42,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $22,826