It's Time Texas

Program: 10.561 – United States Department of Agriculture: Passed-through Texas Health and Human Services Commission: SNAP Cluster: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program. Criteria: The Uniform Guidance requires documentation of time and effort spent on the Federal program. Condition: Healthier Texas was unable to provide sufficient time and effort reporting for employees who were funded by the Federal program. Cause: Healthier Texas did not realize that all employees charged to the Federal award needed to have a time certification or personal activity report completed. Effect or Potential Effect: Healthier Texas’ payroll expenditures charged to the Federal award were not adequately supported by time reporting documentation. Questioned Costs: Based on selections tested, questioned costs totaled $20,848. However, this was the amount based on sample testing and the total annual amount would be over the $25,000 reporting threshold. Context: Employees were not tracking the actual hours worked on the Federal program or completing time and effort documentation. Recommendation: Healthier Texas should design and implement a control process to ensure they are in compliance with Federal award time and effort reporting requirements. Repeat Finding: Yes; see 2023-002 on summary schedule of prior year findings Views of Responsible Officials: Management agrees with the audit finding and a response is included in the corrective action plan

Finding 2024-003: Federal Audit Clearinghouse Submission Program: 10.561 is the only Federal program for Healthier Texas, otherwise not applicable. Criteria: Under the audit requirements of the Uniform Guidance, auditees are required to submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: Healthier Texas’ data collection form and the reporting package for the year ended December 31, 2023 were not submitted to the FAC within a timely manner. Cause: Delays in the year end closing process and providing supporting documentation to the auditors by Healthier Texas caused the timing of the Uniform Guidance audit and submission of the data collection form and the reporting package to the FAC to be late. Effect or Potential Effect: Healthier Texas’ data collection form and reporting package were not submitted on time as required under the Uniform Guidance. Questioned Costs: None noted. Context: While evaluating Healthier Texas’ risk assessment, it was noted that the data collection form and the reporting package were not timely filed. Recommendation: We recommend that Healthier Texas put controls in place to ensure timely filing of the data collection form and the reporting package to the FAC. Repeat Finding: No Views of Responsible Officials: Management agrees with the audit finding and a response is included in the corrective action plan

Program: 10.561 – United States Department of Agriculture: Passed-through Texas Health and Human Services Commission: SNAP Cluster: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program. Criteria: Healthier Texas’ Federal program expenditures must meet the requirements of the Uniform Guidance and be adequately documented. In addition, Healthier Texas’ Federal program expenditures must meet any requirements from passed through state agencies. The Texas Comptroller Travel Site states under the Prohibited Reimbursements, Gratuities section that tips or gratuities paid in conjunction with meal expenses are generally not reimbursable. Condition: Based upon inspection of Healthier Texas’ paid invoices there were costs that were determined to be unallowable. Cause: There is a significant deficiency in internal controls over the compliance for the allowable costs/cost principles type of compliance. Healthier Texas has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance with the allowable costs/cost principles requirements. Effect or Potential Effect: Healthier Texas is not in compliance with the allowable costs/cost principles requirements. Questioned Costs: Amount is below the threshold of $25,000. Context: The following costs were determined to be unallowable or not reasonable or necessary in the proper and efficient performance of the Federal program:  Gratuity charges  Overpayment of one invoice Recommendation: We recommend Healthier Texas design and implement internal control procedures that will ensure compliance with the Uniform Guidance and the compliance supplement. Repeat Finding: No Views of Responsible Officials: Management agrees with the audit finding and a response is included in the corrective action plan

Condition: ITT was unable to provide sufficient time and effort reporting for employees who were funded by the Federal program. Cause: ITT did not realize that all employees charged to the Federal award needed to have a time certification or personal activity report completed. Effect: ITT’s payroll expenditures charged to the Federal Award were not adequately supported by time reporting documentation. Questioned Cost: Based on selections tested, questioned costs totaled $9,749. However, this was the amount based on sample testing and the total annual amount would be over the $25,000 reporting threshold. Recommendation: ITT should design and implement a control process to ensure they are in compliance with Federal award time and effort reporting requirements. Management Response: Name of Contact Person: Lonnicia Maxwell, Vice President Operations Corrective Action: ITT will design and implement a control process to ensure they are in compliance with Federal award time and effort reporting requirements. These actions were implemented in September 2024.