WOMEN'S HEALTH AND FAMILY PLANNING ASSOCIATION OF TEXAS

Finding #2025-002 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Family Planning Services, Assistance Listing #93.217, Contract Number: FPHPA006521-03-00, Contract Year: 04/01/24 – 03/31/25. Criteria: Reporting – The U. S. Department of Health and Human Services requires quarterly and annual Federal Financial Reports be submitted to report expenditures under federal awards. Condition and context: During our testing of the Federal Financial Reports, we noted that for both quarters tested (2 out of 2), the entity reported draw down totals as federal expenditures rather than reporting the actual expenditures incurred. WHFPT management identified the errors and filed corrective reports after year-end. Cause and effect: WHFPT’s policies and procedures were not sufficient to ensure that federal expenditures reported were accurate for each required quarterly Federal Financial Report. Recommendation: Develop a process to ensure that the federal expenditures reported are supported by actual expenditures incurred and provide training to personnel regarding the reporting requirements. Views of responsible officers and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Family Planning Services, Assistance Listing #93.217, Contract Number: FPHPA006521-02-00, Contract Year: 04/01/23 – 03/31/24. Criteria: Reporting – Management of WHFPT is responsible for establishing and maintaining an effective system of internal control over government grant reporting to ensure all costs are reported in the correct period and that government grant revenue is properly reflected in the financial statements in accordance with generally accepted accounting principles. Condition and context: The finding reported as finding #2024-001 includes adjustments for the year ended March 31, 2024 to increase federal expenditures by $220,388. Cause and effect: See finding #2024-001. Questioned costs: None. Recommendation: See finding #2024-001. Views of responsible officers and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Applicable federal program: U. S. Department of Health and Human Services, Family Planning Services (Title X), Assistance Listing #93.217, Contract Number: FPHPA006521-01-00, Contract Year: 04/01/22 – 03/31/23 Criteria: Subrecipient monitoring – 2 CFR §200.332(d) requires that the activities of subrecipients be monitored to ensure that subawards are used for authorized purposes, in compliance with federal statutes, regulations, and the terms and conditions of the subaward, and that subaward performance goals are achieved. Part of the required monitoring activities include following-up and ensuring that the subrecipient takes timely and appropriate action on Single Audit findings. Condition and context: Of the four subrecipients tested, we found that WHFPT did not obtain and review the Single Audit reports for one subrecipient. Effect: Without sufficient policies in place to review the single audits for each subrecipient, WHFPT has no way to ensure that findings, if any, are appropriately and timely addressed to ensure compliance with federal statutes, regulations, and the terms and conditions of the subaward. Recommendation: Implement policies to obtain the single audit reports for all subrecipients to ensure compliance with federal requirements and, where findings are reported, ensure that the subrecipient has taken appropriate actions to remedy the finding. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.