Finding 618108 (2022-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-27
Audit: 39437
Organization: Houston Area Women's Center (TX)

AI Summary

  • Core Issue: Payroll allocations were incorrectly calculated, leading to undercharging of grants and an unallowable bonus being charged.
  • Impacted Requirements: Compliance with the Uniform Guidance and Texas Grant Management Standards regarding accurate payroll records and allowable costs.
  • Recommended Follow-Up: Reinforce adherence to established policies and procedures for payroll reviews and allocations to prevent future errors.

Finding Text

Finding #2022-001 ? Significant Deficiency Applicable federal program: U. S. Department of Justice Assistance Listing #16.575 Passed through Office of the Governor, Criminal Justice Division Crime Victim Assistance Contract #?s: 3521203; 4219601; 4219602 Contract years: 10/01/21 ? 09/30/22; 10/01/21 ? 09/30/22; 10/01/22 ? 09/30/23 Criteria: Allowable Costs ? The Uniform Guidance ?200.430 and the Texas Grant Management Standards require that charges to awards for salaries and wages must be based on records that accurately reflect the work performed. These records must 1) be supported by a system of internal control which provides reasonable assurance the charges are accurate, allowable and properly allocated; 2) reasonably reflect the total activity for which the employee is compensated; 3) comply with the established accounting policies and practices of the agency; and 4) support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one activity. Additionally, the Uniform Guidance requires costs to be necessary and reasonable for the performance of the federal award. Condition and context: During our testing of 25 payroll transactions, we noted the following: ? 9 transactions in March 2022 where allocations were not properly calculated resulting in a grant being undercharged. ? 1 transaction in March 2022 where an employee?s $280 bonus was charged to the grant, which is unallowable. Repeat of finding #2021-001. Cause: The errors in the payroll allocations and charging the bonus to a grant occurred due to failure to follow established policies and procedures. Effect: Failure to follow established internal control policies and procedures which requires reviews of payroll, including adherence to allocations methodology, resulted in errors in grant billings and could result in unallowable costs being charged to the grants, or vice versa. Recommendation: Emphasize adherence to established policies and procedures to ensure payroll, including allocations methodology, are properly followed and reviewed. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 41657 2022-003
    Significant Deficiency Repeat
  • 41658 2022-003
    Significant Deficiency Repeat
  • 41659 2022-003
    Significant Deficiency Repeat
  • 41660 2022-003
    Significant Deficiency Repeat
  • 41661 2022-003
    Significant Deficiency Repeat
  • 41662 2022-003
    Significant Deficiency Repeat
  • 41663 2022-003
    Significant Deficiency Repeat
  • 41664 2022-001
    Significant Deficiency Repeat
  • 41665 2022-002
    Significant Deficiency
  • 41666 2022-001
    Significant Deficiency Repeat
  • 41667 2022-002
    Significant Deficiency
  • 618099 2022-003
    Significant Deficiency Repeat
  • 618100 2022-003
    Significant Deficiency Repeat
  • 618101 2022-003
    Significant Deficiency Repeat
  • 618102 2022-003
    Significant Deficiency Repeat
  • 618103 2022-003
    Significant Deficiency Repeat
  • 618104 2022-003
    Significant Deficiency Repeat
  • 618105 2022-003
    Significant Deficiency Repeat
  • 618106 2022-001
    Significant Deficiency Repeat
  • 618107 2022-002
    Significant Deficiency
  • 618109 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $841,011
14.231 Emergency Solutions Grant Program $595,925
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $357,566
21.023 Emergency Rental Assistance Program $237,391
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $232,301
21.027 Coronavirus State and Local Fiscal Recovery Funds $222,472
16.524 Legal Assistance for Victims $214,895
14.218 Community Development Block Grants/entitlement Grants $214,568
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $185,298
14.267 Continuum of Care Program $108,706
93.667 Social Services Block Grant $90,950
16.575 Crime Victim Assistance $76,567
10.558 Child and Adult Care Food Program $75,333
93.136 Injury Prevention and Control Research and State and Community Based Programs $71,325
16.017 Sexual Assault Services Formula Program $51,147
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $20,628