Finding 40098 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-09-27

Audit: 48673

Organization: Aids Foundation Houston, Inc. (TX)

Auditor: Carr Riggs & Ingram LLC

AI Summary

Core Issue: The Foundation lacked records to confirm that reports were submitted on time, indicating a significant deficiency in internal controls over reporting.
Impacted Requirements: This situation violates 2 CFR Section 200.303(a), which mandates effective internal controls for managing federal awards.
Recommended Follow-Up: The Foundation should enhance its controls by ensuring submission emails are included in grant records to prevent future issues.

Finding Text

2022-001 Internal Controls over Reporting (Significant Deficiency) U.S. Department of Housing and Urban Development 14.241 Housing Opportunities for Persons with AIDS Passed through Houston Regional HIV/AIDS Resource Group, Inc. Federal Award ID numbers:22AFH00HP, 22aAFH00HP, 23AFH00HP Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Condition: AIDS Foundation Houston, Inc. (Foundation) did not have records to verify that submitted reports met the grantor?s due dates during 2022. The Foundation?s established controls over reporting did not work effectively to detect and/or correct this non-compliance over the reporting process. Cause: The Foundation?s staff turnover during 2022 caused the misplacement of the records. Effect: Maintaining records are key to verifying the reports submitted met the grantor?s due dates. Questioned Costs: None Auditor?s Recommendation: We recommend the Foundation review its controls and ensure that the copies of the submission emails be part of the Foundation?s grant records. Views of Responsible Officials: We concur with the recommendation, please see Corrective Action Plan.

Corrective Action Plan

September 26, 2023 AIDS Foundation Houston, Inc. dba Allies in Hope respectfully submits the following corrective action plan in response to our single audit results for the year ended December 31, 2022. Carr, Riggs & Ingram, LLC Two Riverway, 15th Floor Houston, Texas 77056 Audit Period: Fiscal Year January 1, 2022 ? December 31, 2022 The finding from the schedule of findings and questioned costs dated September 26, 2023, is discussed below. The finding is numbered consistently with the number assigned in the schedule. 2022-001 Internal Controls over Reporting (Significant Deficiency) Recommendation: The Foundation review its controls and ensure that the copies of the submission emails be part of the Foundation?s grant records. Corrective Action: Effective 10/1/23 we are using a shared system to house and track our reporting to our funders and will save emails sent to funders in this shared system in order to document the submission of the reports. Responsible Parties: Chief Financial Officer, Chief Program Officer, and Director of Compliance Date Expected to be Corrected: 10/1/23 If the U.S. Department of Housing and Urban Development has any questions regarding this plan, please contact Nicholas Williams, CFO at 713-623-6796 x285. Sincerely yours, Nicholas Williams Nicholas Williams Chief Financial Officer

Other Findings in this Audit

616540 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.267	Continuum of Care Program	$2.05M
14.231	Covid-19 Emergency Solutions Grant Program	$1.13M
93.939	Hiv Prevention Activities_non-Governmental Organization Based	$487,405
14.241	Housing Opportunities for Persons with Aids	$386,810
93.940	Hiv Prevention Activities_health Department Based	$250,833
93.928	Special Projects of National Significance	$242,055
93.917	Hiv Care Formula Grants	$84,028
93.941	Hiv Demonstration, Research, Public and Professional Education Projects	$39,816
14.218	Community Development Block Grants/entitlement Grants	$10,083