Finding 2023-002
material weaknessmodified opinion
- Program
- LOW-INCOME HOME ENERGY ASSISTANCE (93.568)
- Compliance requirement
- Matching, level of effort, earmarking
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Federal Agency Name: Department of Health and Human Services, passed through Texas Department of Housing and Community Affairs
Program Name: Low-Income Home Energy Assistance
Assistance Listing Number: 93.568
Federal Award Number: 81220003607, 34210003673
Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Compliance Requirement: Earmarking
Criteria: The grant awards stipulates a set percentage of the award may be used for administrative costs by the awardee.
Condition: The Committee did not monitor earmarking percentage compliance requirements in accordance with grant allowable expenditures utilized for administrative costs and exceeded allowed administrative claims for certain months of the contract period.
Cause: The Committee had no policy in place to require regular monitoring and compliance with earmarking requirements for administrative claims.
Effect: The Committee on certain months exceeded the allowable administrative claim portion of awarded amounts.
Questioned Costs: None reported.
Context/Sampling: Nonstatistical sampling was used. Sample size was 6 of 36 monthly cost reports. 3 of the 6 months selected for sampling exceeded the allowable administrative percentage.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the Committee update its operating policies to require monthly calculation and review of allowable administrative claims to stay within the allowed percentage.
View of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.