HOUSTON AREA WOMEN'S CENTER INC

Finding #2023-002 – Significant Deficiency and Other Noncompliance. U. S. Department of Housing and Urban Development, Passed through City of Houston, HOME Investment Partnerships Program, Assistance Listing #: 14.239. Contract period: 02/17/23 – 02/16/40. Criteria: Prime and subcontractors are required to be reported on the Section 3 Utilization Plan and the MWSBE Utilization Plan by HAWC. Condition and context: During our testing of 6 subcontractors out of 55 for proper inclusion in the Section 3 Utilization Plan and the MWSBE Utilization Plan, we identified one subcontractor was not included on the reports in a timely manner. Cause: HAWC engaged the construction company to provide the required reporting for the Section 3 Utilization Plan and the MWSBE Utilization Plan. The construction company had overlooked filing the reports in the month the subcontractor was utilized (June 2023), but subsequently identified the error and filed the August 2023 report with the subcontractor included. Effect: The Section 3 Utilization Plan and MWSBE Utilization Plan reports were incomplete in June 2023. Recommendation: Provide additional independent reviews of the Section 3 Utilization Plan and MWSBE Utilization Plan reports. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2023-003 – Significant Deficiency. U. S. Department of the Treasury, Passed through Texas Department of Housing and Community Affairs, Emergency Rental Assistance Program, Assistance Listing #: 21.023, Contract #: 20220000030, Contract period: 03/01/22 – 07/31/25. Criteria: Eligibility – HAWC is responsible for having internal control procedures over the review of client files to ensure the completeness of required documents in the client files and accuracy of information in the client database. Condition and context: HAWC’s policies and procedures for verifying the completeness of eligibility documentation includes the completion of a client file review with an internal reviewer’s signature evidencing their review. In our testing of a sample of 40 clients, we noted one client file for services provided that did not have the signature of an internal reviewer. We noted that the eligibility files did not include the required documentation. Cause: The finding occurred as a result of HAWC not following its internal control procedures requiring review of documentation to ensure the client files are complete with eligibility documentation and the information entered in the client database is accurate. Effect: Failure to follow internal control procedures could result in incomplete client files, errors in the client database, and ineligible persons served. Recommendation: Provide additional staff training to ensure that HAWC’s internal control procedures that require review of client files are followed. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.