Finding Text
2022-001 Internal Controls over Reporting (Significant Deficiency) U.S. Department of Housing and Urban Development 14.241 Housing Opportunities for Persons with AIDS Passed through Houston Regional HIV/AIDS Resource Group, Inc. Federal Award ID numbers:22AFH00HP, 22aAFH00HP, 23AFH00HP Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Condition: AIDS Foundation Houston, Inc. (Foundation) did not have records to verify that submitted reports met the grantor?s due dates during 2022. The Foundation?s established controls over reporting did not work effectively to detect and/or correct this non-compliance over the reporting process. Cause: The Foundation?s staff turnover during 2022 caused the misplacement of the records. Effect: Maintaining records are key to verifying the reports submitted met the grantor?s due dates. Questioned Costs: None Auditor?s Recommendation: We recommend the Foundation review its controls and ensure that the copies of the submission emails be part of the Foundation?s grant records. Views of Responsible Officials: We concur with the recommendation, please see Corrective Action Plan.