FAC Explorer

Finding 1223673 (2025-002)

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: An incorrect payment rate led to an overpayment of $9.10 to a childcare provider under federal programs.
  • Impacted Requirements: Payments must align with approved rates as per Texas Workforce Commission guidelines.
  • Recommended Follow-Up: Enhance training for staff on BakerRipley’s and TWC’s policies to prevent future errors.

Finding Text

Finding #2025-002 – 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 and 20020, Contract Year: 10/01/24 – 09/30/25, 10/01/25 - 09/30/26, 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 and 20020, Contract Year: 10/01/24 – 09/30/25, 10/01/25 - 09/30/26, Department of Agriculture, Assistance Listing #: 10.561 – State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (SNAP Cluster), Passed through Houston-Galveston Area Council, Contract Number: 20020, Contract Year: 10/01/25 - 09/30/26. Criteria: Allowable costs – The Texas Workforce Commission (TWC) requires that childcare providers are paid for services to low-income families based upon approved rates. Condition and context: During our testing of 40 federal and state payments to childcare providers under the Houston-Galveston Area Council contract, we noted that 1 childcare provider was paid at an incorrect provider rate resulting in an overpayment of $9.10. Questioned costs: $9.10. Cause: BakerRipley’s procedures failed to identify that the childcare provider was being paid at the incorrect rate. Effect: Payments to childcare providers were overstated by the use of the incorrect rate resulting in unallowable costs under the impacted program and necessitating recoupment efforts. Recommendation: Re-emphasize training of personnel and adherence to BakerRipley’s and TWC’s policies and procedures. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2025-002 – 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 and 20020, Contract Year: 10/01/24 – 09/30/25, 10/01/25 - 09/30/26, 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 and 20020, Contract Year: 10/01/24 – 09/30/25, 10/01/25 - 09/30/26, Department of Agriculture, Assistance Listing #: 10.561 – State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (SNAP Cluster), Passed through Houston-Galveston Area Council, Contract Number: 20020, Contract Year: 10/01/25 - 09/30/26. Condition and context: During our testing of 40 federal and state payments to childcare providers under the Houston-Galveston Area Council contract, we noted that 1 childcare provider was paid at an incorrect provider rate resulting in an overpayment of $9.10. Recommendation: Re-emphasize training of personnel and adherence to BakerRipley’s and TWC’s policies and procedures. Corrective action: BakerRipley will re-emphasize training of personnel and adherence to BakerRipley’s and TWC’s policies and procedures. Responsible officer: Neil Hanson. Estimated date of completion: December 31, 2026

Categories

Allowable Costs / Cost Principles 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
  • 1223672 2025-001
    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