Finding 1217830 (2025-001)

Federal Agency: U.S Department of Health and Human Services - Administration of Children and Families Federal Program Name: Temporary Assistance for Needy Families Foster Youth Project Assistance Listing Number: 93.558 Federal Award Identification Number: 2501TXTANF - 2024 Pass-Through Agency: Texas Workforce Commission Pass-Through Numbers: 0125TAN001, 1824TAN001, 1826TAN001 Award Period: 08/01/2024 – 09/30/2025 Type of Finding:  Significant Deficiency in Internal Control Criteria: The Texas Workforce Commission has created a Contract Budget and Billing Workbook which is used to manage budget changes and monthly billing. The billing worksheet contains all approved transactions for Temporary Assistance for Needy Families Foster Youth Project grants for the month including payroll disbursements. Condition and Context: From January to May 2025, payroll expenses for one employee were billed to the grants based on the budgeted estimate, even though their actual hours worked were less than budgeted. Questioned Costs: Estimated maximum: $116. Cause: Lack of key control over one employee’ payroll expenses allocated to the grants. Effect: Potential expenditure coded to the grant in which the employee was not completing work for the grant. Repeat Finding: No Recommendation: The Organization should implement thorough payroll expenses reviews, ensuring employee hours billed to grants reflect actual time worked rather than budget estimates. Alternatively, if budgeted amounts are used, they should be regularly compared with actual hours, with billing adjusted at least annually at the end of each grant. View of Responsible Officials: Management is in agreement. Management Responses and Corrective Action Plan: See attached corrective action plan.