Finding Text
FINDING NO. 2023-001: NON-COMPLIANCE WITH SPECIAL TESTS AND PROVISIONS
RELATED TO TRI-PARTITE BOARD COMPLIANCE AND SIGNIFICANT DEFICIENCY IN
INTERNAL CONTROL OVER NONCOMPLIANCE WITH THE RELEVANT SPCIAL TESTS
AND PROVISIONS
Condition: Gulf Coast Community Services Association, Inc. (the “Organization) currently has nine (9)
members on its Board with one (1) vacant seat pending nomination from an elected public official. As
such, only two (2) members currently represent elected public officials. The vacant board position has
not been filled and has exceeded the length of time the state allows for the seat to remain vacant.
Additionally, no appointive public official was nominated to fill this vacant seat.
Criteria: The CSBG Act at 42 USC 9910(a)(2)(A) and Title 10 of the Texas Administrative Code (TAC)
Part 1, Chapter 6, Subchapter B, Rule §6.210(a) requires GCCSA to administer the CSBG Program
through a tripartite board with a condition that one-third (1/3) of such members be elected public officials,
holding office on the date of the selection, or their representatives. In the event that there are not enough
elected public officials reasonably available and willing to serve on the board, the entity may select
appointive public officials to serve on the board. The public officials selected to serve on the board may
each choose one permanent representative or designate an alternate to serve on the board. Appointive
public officials or their representatives or alternates may be counted in meeting the 1/3 requirement.
Per May 2023 OMB Compliance Supplement, the CSBG Act does not provide for a grace period for
entities to get into compliance when a vacancy exists, however, entities are required to not exceed the
length of time permitted by the state. Rule §6.212(b)(1) of Subchapter B above of the TAC, allows the
board position to remain vacant for no more than 90 days.
Cause: The Organization did not take the necessary steps to ensure and support the Board’s timely
selection and seating of a public official or public official’s permanent representative to fill the vacant
public sector seat.
Perspective Information: The Organization has not filled the board vacancy for the selected public
official for over one (1) year.
Questioned Costs: None noted.
Effect or Potential Effect: The Organization is not in compliance with its corporate bylaws as well as
regulatory provisions related to tri-partite board requirements.Identification of Repeat Finding: Not applicable since this is a new finding.
Recommendation: We recommend that the Organization fill the vacant public sector seat, strengthen
monitoring of compliance with corporate bylaws and report such compliance to the Governance &
Operations Committee and/or its Board of Directors, at least on an annual basis.
Views of Responsible Officials: Although there were several unforeseen circumstances that adversely
impacted the timely filling of the vacancy for the public sector seat, none validate the fact that the
Organization did not adhere to the expectations outlines in the corporate bylaws and regulatory
provisions.
It is important, however, that the Organization is aware of the need for key members of management to
work with the Board to develop a plan for board recruitment, development and training.