Finding 564789 (2023-004)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-06-13

AI Summary

  • Core Issue: There is a significant deficiency in internal controls, leading to mismatched eligibility dates for 4 out of 40 consumers between the ILS and DRS systems.
  • Impacted Requirements: Compliance with 2 CFR 200.303 and ILS Program Standards 5.6.3.5 is not being met, risking services to ineligible consumers.
  • Recommended Follow-Up: Strengthen internal controls to ensure accurate eligibility date tracking in both systems to prevent service delivery to ineligible consumers.

Finding Text

2023-004 (2022-004) – Classification of Consumer Goals – Significant Deficiency in Internal Controls over Compliance ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2023 Condition: Eligibility dates were not matching between the ILS system and DRS system on 4 of 40 consumers tested. Criteria: 2 CFR 200.303 requires a non-Federal entity to Establish 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. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per ILS Program Standards 5.6.3.5 Revision 19-1, all entries to the Independent Living Services Data Reporting System made by the service provider will be considered a part of the consumer case file. Each consumer case file must minimally meet the requirements of 34 CFR, Subtitle B, Chapter III, Part 364, §364.53, and provide documentation concerning: the consumer’s goals for independence and anticipated methods and services to achieve the goals. Effect: The Organization may unintentionally provide services to ineligible consumers. Cause: Lack of internal controls at the Organization to ensure that eligibility dates are appropriate in both the ILS and DRS system. Questioned Costs: No questioned costs identified.

Corrective Action Plan

Auditor's Recommendation: The auditor recommends the Organization enhance the design of its control activities and procedures over the reporting of consumer eligibility dates to ensure that date of eligibility agree between the ILS and DRS systems. Management’s Response: The LIFE Inc. staff have received training on new measures to ensure that the eligibility dates in the databases are consistent. When new Consumers request assistance through the Purchased Services Program, their intake appointments are scheduled simultaneously with those for the Base Grant Services. This coordination helps guarantee that the dates in both databases match. Due date of completion: May 31, 2025 Responsible Official: Program Director, Lidia Taylor

Categories

Eligibility Matching / Level of Effort / Earmarking Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 564787 2023-002
    Significant Deficiency Repeat
  • 564788 2023-003
    Significant Deficiency Repeat
  • 564790 2023-002
    Significant Deficiency Repeat
  • 564791 2023-003
    Significant Deficiency Repeat
  • 564792 2023-004
    Significant Deficiency Repeat
  • 1141229 2023-002
    Significant Deficiency Repeat
  • 1141230 2023-003
    Significant Deficiency Repeat
  • 1141231 2023-004
    Significant Deficiency Repeat
  • 1141232 2023-002
    Significant Deficiency Repeat
  • 1141233 2023-003
    Significant Deficiency Repeat
  • 1141234 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $102,759
93.369 Acl Independent Living State Grants $97,131
93.432 Covid-19: Acl Centers for Independent Living $11,174
93.432 Acl Centers for Independent Living $9,942