Finding Text
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: 2022
Condition: LIFE was not verifying the classification of consumer goals agreed in the ILS system
and DRS system on 1 of 49 consumers tested. In addition, inaccurate listings of consumers were
initially provided to the auditors.
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 classification of consumer goals reported and tracked in the DRS system may have
been reported in the wrong category.
Cause: Lack of internal controls at LIFE to ensure that consumer goals are reported correctly in
both the ILS and DRS system and accurate reports are generated.
Questioned Costs: No questioned costs identified.