Buckner International

Federal Agency: U.S Department of Health and Human Services - Administration of Children and Families Federal Program Name: Temporary Assistance for Needy Families Foster Youth Project Assistance Listing Number: 93.558 Federal Award Identification Number: 2501TXTANF - 2024 Pass-Through Agency: Texas Workforce Commission Pass-Through Numbers: 0125TAN001, 1824TAN001, 1826TAN001 Award Period: 08/01/2024 – 09/30/2025 Type of Finding:

 Significant Deficiency in Internal Control

Criteria: The Texas Workforce Commission has created a Contract Budget and Billing Workbook which is used to manage budget changes and monthly billing. The billing worksheet contains all approved transactions for Temporary Assistance for Needy Families Foster Youth Project grants for the month including payroll disbursements.

Condition and Context: From January to May 2025, payroll expenses for one employee were billed to the grants based on the budgeted estimate, even though their actual hours worked were less than budgeted.

Questioned Costs: Estimated maximum: $116.

Cause: Lack of key control over one employee’ payroll expenses allocated to the grants. Effect: Potential expenditure coded to the grant in which the employee was not completing work for the grant.

Repeat Finding: No

Recommendation: The Organization should implement thorough payroll expenses reviews, ensuring employee hours billed to grants reflect actual time worked rather than budget estimates. Alternatively, if budgeted amounts are used, they should be regularly compared with actual hours, with billing adjusted at least annually at the end of each grant.

View of Responsible Officials: Management is in agreement.

Management Responses and Corrective Action Plan: See attached corrective action plan.

Federal Agency: U.S Department of Health and Human Services - Administration of Children and Families Federal Program Name: Temporary Assistance for Needy Families Foster Youth Project Assistance Listing Number: 93.558 Federal Award Identification Number: 2501TXTANF - 2024 Pass-Through Agency: Texas Workforce Commission Pass-Through Numbers: 0125TAN001 Award Period: 08/01/2024 – 09/30/2025 Type of Finding:

 Significant Deficiency in Internal Control

Criteria: The Texas Workforce Commission has created a Contract Budget and Billing Workbook which is used to manage budget changes and monthly billing. The billing worksheet contains all approved transactions for Temporary Assistance for Needy Families Foster Youth Project grants for the month including general disbursements.

Condition and Context: One expenditure that was billed to the grant in March 2025 exceeded amount that was supported by provided documentation.

Questioned Costs: $50.

Cause: Lack of effective key control over review of general expenses billed to the grant.

Effect: Potential expenditures that do not exist are coded to the grant or expenditures for which the Organization doesn't have appropriate support are coded to the grant.

Repeat Finding: No

Recommendation: The Organization should implement thorough review over general expenditures billed to the grant to ensure that all expenditures exist and match supporting documentation.

View of Responsible Officials: Management is in agreement.

Management Responses and Corrective Action Plan: See attached corrective action plan.

Federal Agency: U.S Department of Health and Human Services - Administration of Children and Families Federal Program Name: Temporary Assistance for Needy Families Foster Youth Project Assistance Listing Number: 93.558 Federal Award Identification Number: 2501TXTANF - 2024 Pass-Through Agency: Texas Workforce Commission Pass-Through Numbers: 1824TAN001 Award Period: 08/01/2024 – 09/30/2025 Type of Finding:

 Significant Deficiency in Internal Control

Criteria: The grant agreement requires final performance report to be submitted within 60 days after the grant end date.

Condition and Context: Final performance report was submitted on December 2, 2025 which is outside of the allowed 60 days period. No extension was obtained from the grantor.

Questioned Costs: Estimated maximum: N/A

Cause: Lack of effective key control over final performance reporting to ensure timely submission.

Effect: Failure to submit reports by the due date is considered contractual noncompliance.

Repeat Finding: No.

Recommendation: The Organization should immediately notify the grantor when it is determined that the Organization will not be able to meet the required reporting deadlines in order to obtain an extension or determine alternative resolution. In addition, the Organization should implement additional internal controls to ensure that reports are getting submitted timely.

View of Responsible Officials: Management is in agreement.

Management Responses and Corrective Action Plan: See attached corrective action plan.