Finding Text
Significant Deficiency CFDA No.: 16.575 Program Title: Crime Victim Assistance Federal Award No.: 2020-V2-GX-004 and 2019-V2-GX-0011 Federal Award Year: September 30, 2021 Name of Pass-through Entity: Texas Office of the Governor ? Criminal Justice Division (CJD) and Children?s Advocacy Centers of Texas, Inc. (CACTX) Name of Federal Agency: U.S. Department of Justice 2022-001 Allowable Costs Criteria 2 CFR 200.430(i)(1)(i) states, ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.? In addition, state and federal grant standards require that the method used to allocate a cost should be reasonable and measurable means of distributing the cost to those funding sources, and consistently applied for the type of cost. Condition During the audit, we noted two instances in which salaries and wages charged to the grant did not agree to time allocated on timesheets. In addition, we noted multiple variances in indirect costs charged to the grant because of misapplication of the Organization?s cost allocation plan. The total extrapolated difference amounted to less than 1% of total expenditures for this grant. Questioned Cost $0 Context This does not appear to be an isolated instance. Cause Coding of timesheets in accounting software was not reviewed prior to preparation of requests for reimbursement. In addition, the Organization did not update and apply its cost allocation plan correctly on a monthly basis. Effect The Organization had multiple variances in salaries and indirect costs. Recurrence This is a repeat finding. Recommendation The Organization should review timesheets before coding salaries and wages in QuickBooks and preparing requests for reimbursement. In addition, the Organization should be updating its FTE calculation for its cost allocation plan and certifying it monthly to determine monthly grant expenditures. Views of Responsible Officials The Henderson County HELP Center, Inc. (the Organization) will ensure each employee timesheet is reviewed and approved monthly prior to payroll being paid. The Organization will also ensure the cost allocation plan based on full-time equivalents (FTE) is reviewed and certified monthly prior to preparation of requests for reimbursement.