Finding Text
Finding #2023-002 – Significant Deficiency and Other Noncompliance. Applicable federal programs: U. S. Department of Treasury, Assistance Listing #21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds, Passed through Harris County, Texas Contract #220163, Contract year: 12/01/22 – 12/31/24. U. S. Department of Health and Human Services: Assistance Listing #93.243, Substance Abuse and Mental Health Services Projects of Regional and National Significance, Contract #5H79TI080624-03, Contract year: 09/30/21 – 09/29/22, Contract #5H79TI080624-04, Contract year: 09/30/22 – 09/29/23, Passed through the City of Houston Health Department, Contract #H79SP080300, Contract years: 11/01/21 – 10/31/22, 11/01/22 – 10/31/23 and 06/08/21 – 06/30/23, Assistance Listing #93.788, Opioid STR, Passed through the Texas Health and Human Services Commission, Contract #HHS000357900001, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23, Passed through the University of Texas Health Science Center, San Antonio, Contract #HHS000561800001, Contract year: 09/01/21 – 08/31/22, Assistance Listing #93.959, Block Grants for Prevention and Treatment of Substance Abuse, Passed through the Texas Health and Human Services Commission, Contract #HHS000130500019, Contract years: 09/01/21 – 08/31/22 and 09/01/22 – 08/31/23. Criteria: Reporting – Management is responsible for establishing and maintaining an effective system of internal control over government grant billings to ensure all costs are reimbursed and that government grant revenue and receivables are properly reflected in the financial statements in accordance with generally accepted accounting principles and the Uniform Guidance. Condition and context: Houston Recovery Center is required to submit monthly reimbursement requests for five of its federal programs; one program requires reimbursement requests based on achievement of certain milestones rather than time. Out of a sample of 17 requests, we found six did not have evidence of review and approval as required by Houston Recovery Center’s policies and procedures. Cause and effect: The Senior Grant Accountant position did not provide the grant reimbursements to the Executive Director for review and approval prior to submission. The person in this role has transitioned. Failure to establish and maintain an adequate internal control system over government grant billings could result in the Houston Recovery Center not being reimbursed for program costs or overbilling government grants. Recommendation: Training should be provided to ensure that policies and procedures regarding independent review and approval are followed. Views of responsible officers and planned corrective action: Management agrees with the finding. See Corrective Action Plan.