Tarrant County Samaritan Housing, Inc

Finding No. 2024-001: Allowable activities - Significant deficiency in internal control over compliance. Criteria: The Uniform Guidance requires that costs be adequately documented. The Organization’s internal control procedures over compliance specify that all employees’ timesheets and hours agree to the amount allocated to grant activities. Condition: During allowable cost testing for federal grants, for 2 out of the 25 payroll transactions tested, the amount charged to the grant did not agree to the employee’s approved percentage to be allocated to the grant. Cause: Formula errors on the allocation spreadsheet were not caught during the review process. Effect: The amount charged to the grant was less than the amount that should have been allocated to the grant. Recommendation: Management should ensure that the allocations on the grant billing sheet agree to the timecard prior to requesting reimbursement. Management’s Response: See corrective action plan.

Finding No. 2024-002: Eligibility – Significant deficiency in internal control over compliance. Criteria: The terms of the grant agreement require that a unit inspection is documented when a client moves in and subsequent annual inspections. Condition: During eligibility testing for federal grants, for 2 out of 11 participants tested were not able to provide unit inspection documentation. Cause: The Organization was relying on other entities to complete the move in and annual inspections. They did not implement internal controls procedures to ensure these third party inspections were taking place. Effect: All units were not inspected in accordance with grant requirements. Recommendation: Management should implement internal control procedures to ensure annual inspections are completed in accordance with the grant requirements. Management’s Response: See corrective action plan.