Finding 565530 (2024-002)

Program: 10.561 – United States Department of Agriculture: Passed-through Texas Health and Human Services Commission: SNAP Cluster: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program. Criteria: The Uniform Guidance requires documentation of time and effort spent on the Federal program. Condition: Healthier Texas was unable to provide sufficient time and effort reporting for employees who were funded by the Federal program. Cause: Healthier Texas did not realize that all employees charged to the Federal award needed to have a time certification or personal activity report completed. Effect or Potential Effect: Healthier Texas’ payroll expenditures charged to the Federal award were not adequately supported by time reporting documentation. Questioned Costs: Based on selections tested, questioned costs totaled $20,848. However, this was the amount based on sample testing and the total annual amount would be over the $25,000 reporting threshold. Context: Employees were not tracking the actual hours worked on the Federal program or completing time and effort documentation. Recommendation: Healthier Texas should design and implement a control process to ensure they are in compliance with Federal award time and effort reporting requirements. Repeat Finding: Yes; see 2023-002 on summary schedule of prior year findings Views of Responsible Officials: Management agrees with the audit finding and a response is included in the corrective action plan