Finding Text
U.S. Department of Housing and Urban Development
14.241 – Housing Opportunities for Persons with AIDS
Passed through Texas Department of State Health Services
Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023
Contract No. 537-17-0195-00001 and HHS001022300003
Texas Department of State Health Services
State HIV Service Grants
Award Periods: September 1, 2021 to March 31, 2022 and April 1, 2022 to August 31, 2023
Contract No. 537-18-0097-00001 and HHS001022300002
Criteria: Pass-through entities are required to monitor subrecipients in accordance with 2 CFR Section 200.332. Further, under 2 CFR Section 200.303a, 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 statutes, regulations, and the terms and conditions of the award.
Condition: For the fiscal year ended December 31, 2022, The Resource Group did not perform financial monitoring of its subrecipients.
Cause: Initially subrecipient monitoring was suspended due to COVID-19 in 2020 and reinstated late 2021. The Resource Group restarted their monitoring of subrecipients, however the monitoring was done by two individuals, one for programming and the other for financial monitoring. Monitoring of programming was completed timely, while the financial monitoring was not. Further, the Finance Director, who was responsible for the financial monitoring, resigned in 2023 and the successor Finance Director was hired in August 2023.
Effect: As a result of not completing all financial monitoring and the turnover in Finance Director, The Resource Group is not in compliance with grant requirements.
Questioned Costs: None Noted
Recommendation: The Resource Group should follow its policies to perform fiscal monitoring on its subrecipients in accordance with 2 CFR Section 200.332.
Views of Responsible Officials: See corrective action plan.