Finding 569707 (2024-005)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-06-30

Audit: 361057

Organization: Children's Advocacy Center of Hidalgo County, Inc. (TX)

Auditor: Burton McCumber & Longoria LLP

AI Summary

Core Issue: The Center failed to verify its FY24 inventory count, leaving key information blank and not maintaining required property records.
Impacted Requirements: This violates VOCA's equipment management criteria, specifically the need for physical inventory every two years and proper tagging of equipment.
Recommended Follow-Up: Update policies to ensure compliance with VOCA requirements, including documenting the inventory count date, results, and responsible personnel signatures.

Finding Text

Reference Number 2024-005 Equipment Management (Federal and State) Criteria: VOCA Grantee Responsibilities and Conditions stipulate requirements related to property and equipment purchased in whole or in part with grant funds (Section 7 Equipment Requirements): 7.1B states at least every two (2) years, grantee must take a physical inventory and reconcile the results with property records. 7.1C outlines the minimum requirements of the information that must be maintained for property/inventory (description, serial number, etc.). 7.1D states the grantee shall permanently identify all such equipment by appropriate tags or labels affixed to the equipment. Condition: Evidence of the inventory count performed in FY24 could not be verified as the column labeled "verified by and date" was left blank for all items. The Center was unable to provide an updated, comprehensive listing of all property/equipment purchased in whole or in part with VOCA funding, including the minimum information required under Section 7.1C. We were unable to observe equipment inventory tags affixed to items acquired within FY24. Cause and Effect: The Center did not adhere to its policies and procedures regarding an annual physical inventory of equipment. Additionally, the Center appears to have changed the format of its inventory records, leading to the exclusion of the minimum information required by VOCA. Questioned Cost: None reported Repeat Finding: N/A Recommendation: It is recommended the Center update the design of its written policies and procedures regarding Equipment Management to ensure all items required under Section 7 Equipment Requirements are addressed. As best practice, the Center should consider requiring identification of the date the physical count was performed, the results/conclusion of the count and who performed the count, evidenced by their signature(s). Views of Responsible Officials: See management's corrective action plan

Corrective Action Plan

Reference Number 2024-005 Equipment Management Recommendation – It is recommended the Center update the design of its written policies and procedures regarding Equipment Management to ensure all items required under Section 7 Equipment Requirements are addressed. As best practice, the Center should consider requiring identification of the date the physical count was performed, the results/conclusion of the count and who performed the count, evidenced by their signature(s). Corrective Action Plan – CACHSC has introduced a new Equipment Management Plan, now included in the Financial Policies. A dedicated staff member has been assigned sole responsibility for maintaining accurate records and updates for all organizational equipment. Proposed Completion Date – Immediately Contact Person – Executive Director: Nadia Ochoa Finance Director: Daniel Sanchez Account 1: Rolando Solis

Other Findings in this Audit

569708 2024-006

Significant Deficiency
1146149 2024-005

Significant Deficiency
1146150 2024-006

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
16.575	Crime Victim Assistance	$1.22M
21.027	Coronavirus State and Local Fiscal Recovery Funds	$95,029
14.218	Community Development Block Grants/entitlement Grants	$14,911