FAC Explorer

Finding 1223672 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-07-15
Audit: 407173
Organization: Bakerripley (TX)
Auditor: BLAZEK & VETTERLING

AI Summary

  • Core Issue: Duplicate childcare payments totaling $3.6 million were made due to software updates affecting payment reports.
  • Impacted Requirements: Internal controls over federal awards were insufficient, violating Section 200.303 of the Uniform Guidance.
  • Recommended Follow-Up: Establish procedures to detect and prevent duplicate payments before they are issued.

Finding Text

Finding #2025-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: Department of Health and Human Services, Assistance Listing #: 93.575 – Childcare and Development Block Grant (CCDF Cluster), Passed through Houston-Galveston Area Council, Contract Number: 13410, Contract Year: 10/01/24 - 09/30/25, Assistance Listing #: 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CCDF Cluster), Passed through Houston-Galveston Area Council, Contract Number: 13410, Contract Year: 10/01/24 - 09/30/25. Criteria: Allowable costs – Section 200.303 of the Uniform Guidance indicates that the organization must 1) establish, document, and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award and 2) evaluate and monitor the compliance with statutes, regulations, and terms and conditions of the federal award. The non-federal entity must also take prompt action when instances of noncompliance are identified. Condition and context: During the planning phase of the audit, management disclosed that childcare providers were paid $3.6 million in duplicate childcare assistance payments in July 2025. As of May 15, 2026, $2.5 million of the duplicate payments have been recovered. Questioned costs: $1.1 million. Cause: BakerRipley’s state-required childcare assistance payment application was first implemented in January 2025 with software updates made by the state in July 2025. The updates impacted the final payment report on one payment batch, resulting in duplications of individual children listed on that report. A final reconciliation of the batch of childcare payments was not performed to identify any duplicated transactions at the time the batch was processed. Effect: Duplicate childcare provider payments were issued and charged to the grant. Recommendation: Implement prevention procedures to identify duplicate payments prior to payment. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2025-001 – Significant Deficiency and Other Noncompliance. Applicable federal programs: Department of Health and Human Services, Assistance Listing #: 93.575 – Childcare and Development Block Grant (CCDF Cluster), Passed through Houston-Galveston Area Council, Contract Number: 13410, Contract Year: 10/01/24 - 09/30/25, Assistance Listing #: 93.596 – Child Care Mandatory and Matching Funds of the Child Care and Development Fund (CCDF Cluster), Passed through Houston-Galveston Area Council, Contract Number: 13410, Contract Year: 10/01/24 - 09/30/25. Condition and context: During the planning phase of the audit, management disclosed that childcare providers were paid $3.6 million in duplicate childcare assistance payments in July 2025. As of May 15, 2026, $2.5 million of the duplicate payments have been recovered. Recommendation: Implement prevention procedures to identify duplicate payments prior to payment. Corrective action: BakerRipley has reviewed internal processes and procedures to determine the cause and implement prevention procedures related to the duplication of payments prior to payment. Responsible officer: Neil Hanson. Estimated date of completion: December 31, 2026

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1223651 2025-001
    Material Weakness Repeat
  • 1223652 2025-002
    Material Weakness Repeat
  • 1223653 2025-002
    Material Weakness Repeat
  • 1223654 2025-002
    Material Weakness Repeat
  • 1223655 2025-001
    Material Weakness Repeat
  • 1223656 2025-002
    Material Weakness Repeat
  • 1223657 2025-002
    Material Weakness Repeat
  • 1223658 2025-001
    Material Weakness Repeat
  • 1223659 2025-002
    Material Weakness Repeat
  • 1223660 2025-002
    Material Weakness Repeat
  • 1223661 2025-001
    Material Weakness Repeat
  • 1223662 2025-002
    Material Weakness Repeat
  • 1223663 2025-002
    Material Weakness Repeat
  • 1223664 2025-002
    Material Weakness Repeat
  • 1223665 2025-002
    Material Weakness Repeat
  • 1223666 2025-001
    Material Weakness Repeat
  • 1223667 2025-002
    Material Weakness Repeat
  • 1223668 2025-002
    Material Weakness Repeat
  • 1223669 2025-001
    Material Weakness Repeat
  • 1223670 2025-002
    Material Weakness Repeat
  • 1223671 2025-002
    Material Weakness Repeat
  • 1223673 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.600 HEAD START $36.91M
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $36.45M
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $30.22M
64.033 VA SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM $6.63M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $2.02M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1.80M
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $1.61M
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $1.54M
17.225 UNEMPLOYMENT INSURANCE $1.54M
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $1.53M
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $646,419
10.555 NATIONAL SCHOOL LUNCH PROGRAM $611,608
21.009 VOLUNTEER INCOME TAX ASSISTANCE (VITA) MATCHING GRANT PROGRAM $611,534
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $458,858
97.102 CASE MANAGEMENT PILOT PROGRAM $403,326
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $391,847
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $380,747
84.027 SPECIAL EDUCATION GRANTS TO STATES $359,073
10.553 SCHOOL BREAKFAST PROGRAM $227,106
17.801 JOBS FOR VETERANS STATE GRANTS $198,646
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $197,821
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $188,004
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $91,103
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $79,964
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $69,509
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $66,299
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $53,994
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $52,018
81.087 RENEWABLE ENERGY RESEARCH AND DEVELOPMENT $38,130
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $38,042
17.207 EMPLOYMENT SERVICE/WAGNER-PEYSER FUNDED ACTIVITIES $25,277
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $21,682
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $18,309
17.259 WIOA YOUTH ACTIVITIES $10,228
17.258 WIOA ADULT PROGRAM $4,390
84.369 GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES $2,849
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $679
93.778 GRANTS TO STATES FOR MEDICAID $567
84.425 EDUCATION STABILIZATION FUND $-2,402