FOUNDATION FOR INSPIRATION & RECOGNITION OF SCIENCE & TECHNOLOGY IN TENon-Profit

2021-001 Noncompliance with Allowable Costs U.S. Department of Health and Human Services Passed through Texas Workforce Commission CFDA No. 93.558 ? Temporary Assistance for Needy Families TWC Contract No. 2919TAN001 Criteria: Internal controls should be in place in accordance with Federal award guidelines that provide reasonable assurance that employees who works, in whole or in part, on a federal program or cost objective are added to the payroll only after proper management approval Condition: The Organization was unable to provide sufficient payroll documentation for certain employees who were funded by the TANF program. More specifically, certain timesheets did not show evidence of approval by a direct supervisor. This is a repeat finding. Cause: The Organization experienced turnover and did not have effective policies and procedures in place to ensure supervisory approval on timekeeping records. As a result, the timesheets for certain employees that were charged against the federal program were not being properly approved by a direct supervisor. Effect: The Organization is not in compliance with federal requirements of costs charged to the TANF program. The costs may be disallowed. Questioned Costs: Due to insufficient payroll documentation for 7 individuals selected in our testing, certain salary/wages, and related taxes and benefits are considered known questioned costs in the amount of $19,660.49. We question costs when we find the Organization has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. We must report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Context: We tested 60 transactions charged against the federal program. The test found that 7 employees did not have sufficient payroll documentation. Our sample was a statistically valid sample. Recommendation: The Organization should implement a process to properly document approval by a direct supervisor before payroll is processed and charges are made against the federal program. The Organization should consult with the grantor to discuss whether the questioned costs identified in the audit should be repaid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

2020-001 Noncompliance with Allowable Costs U.S. Department of Health and Human Services Passed through Texas Workforce Commission CFDA No. 93.558 ? Temporary Assistance for Needy Families TWC Contract No. 2920TAN006 Criteria: Internal controls should be in place in accordance with Federal award guidelines that provide reasonable assurance that employees who works, in whole or in part, on a federal program or cost objective are added to the payroll only after proper management approval. Condition: The Organization was unable to provide sufficient payroll documentation for certain employees who were funded by the TANF program. More specifically, certain timesheets did not show evidence of approval by a direct supervisor. Cause: The Organization experienced turnover and did not have effective policies and procedures in place to ensure supervisory approval on timekeeping records. As a result, the timesheets for certain employees that were charged against the federal program were not being properly approved by a direct supervisor. Effect: The Organization is not in compliance with federal requirements of costs charged to the TANF program. The costs may be disallowed. Questioned Costs: Due to insufficient payroll documentation for 9 individuals selected in our testing, certain salary/wages, and related taxes and benefits are considered known questioned costs in the amount of $18,451.63. We question costs when we find the Organization has not complied with grant regulations or when it does not have adequate documentation to support its expenditures. We must report known questioned costs when likely questioned costs are greater than $25,000 for a type of compliance requirement for a major program. Context: We tested 60 transactions charged against the federal program. The test found that 9 employees did not have sufficient payroll documentation. Our sample was a statistically valid sample. Recommendation: The Organization should implement a process to properly document approval by a direct supervisor before payroll is processed and charges are made against the federal program. The Organization should consult with the grantor to discuss whether the questioned costs identified in the audit should be repaid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.