EIN: 746001875
UEI: KPJ2RC29LY68
Audit also covers 2 related EINs: 371701440, 742573425 · unlinked EINs have no separate FAC filing
Audited by: RAUL HERNANDEZ & COMPANY, P.C.
Oversight agency: 14 [Department of Housing and Urban Development]
View federal awards & risk assessment →
Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 31, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 1, 2026 (23 days from today).
What is a management decision? →FAC accepted this audit on October 7, 2025 — management decision was due April 7, 2026.
FAC accepted this audit on December 22, 2025 — management decision was due June 22, 2026.
FAC accepted this audit on December 17, 2025 — management decision was due June 17, 2026.
FAC accepted this audit on March 5, 2025 — management decision was due September 5, 2025.
FAC accepted this audit on December 22, 2025 — management decision was due June 22, 2026.
FAC accepted this audit on December 17, 2025 — management decision was due June 17, 2026.
FAC accepted this audit on April 11, 2024 — management decision was due October 11, 2024.
ALN 97.067 - HOMELAND SECURITY GRANTS PROGRAM (HSGP) Reference Number 2022-013 Payroll Costs Criteria: The Homeland Security Grants program (Operation Stonegarden) allows funds to be used for operational overtime costs associated with law enforcement activities, in support of border law enforcement agencies for increased border security enhancement. Internal controls should be in place to ensure such overtime costs are accurately tracked to ensure reimbursement is requested only for allowable costs and allowable activities. Condition Found: Internal controls are not suitably designed to ensure overtime costs charged to the program are correct and accurate. A sample of 40 payroll transactions were selected for testing and the following inaccuracies were noted. One instance was noted where an employee worked 10 overtime hours performing Operation Stonegarden eligible activities, however, 16 overtime hours were charged to the program. One instance was noted where an employee worked 12.5 overtime hours performing Operation Stonegarden eligible activities, however, only 5.5 overtime hours were charged to the program. One instance was noted where an employee worked 8 overtime hours performing Operation Stonegarden eligible activities, however, the employee timesheet reflected 11.75 hours. Context: Condition was noted in conducting testing for internal controls over compliance and compliance. A random sample of 40 payroll transactions were selected for testing. Effect: Ineffective internal controls related to the tracking of overtime hours results in incorrect reimbursement requests submitted for reimbursement. Such errors may result in ineligible costs charged to the program. Questioned Costs: None reported. Cause: Controls are not suitably designed to ensure Operation Stonegarden hours are accurately tracked. Recommendation: We recommend the City strengthen internal controls related to the tracking of Operation Stonegarden overtime costs. As part of the process for requesting reimbursement, we recommend all supporting documentation be reviewed including employee timesheets, daily activity report summaries, OPSG overtime submission forms and reimbursement request forms. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.
Show full finding ▾Hide full finding ▴ALN 97.067 - HOMELAND SECURITY GRANTS PROGRAM (HSGP) Reference Number 2022-013 Payroll Costs Criteria: The Homeland Security Grants program (Operation Stonegarden) allows funds to be used for operational overtime costs associated with law enforcement activities, in support of border law enforcement agencies for increased border security enhancement. Internal controls should be in place to ensure such overtime costs are accurately tracked to ensure reimbursement is requested only for allowable costs and allowable activities. Condition Found: Internal controls are not suitably designed to ensure overtime costs charged to the program are correct and accurate. A sample of 40 payroll transactions were selected for testing and the following inaccuracies were noted. One instance was noted where an employee worked 10 overtime hours performing Operation Stonegarden eligible activities, however, 16 overtime hours were charged to the program. One instance was noted where an employee worked 12.5 overtime hours performing Operation Stonegarden eligible activities, however, only 5.5 overtime hours were charged to the program. One instance was noted where an employee worked 8 overtime hours performing Operation Stonegarden eligible activities, however, the employee timesheet reflected 11.75 hours. Context: Condition was noted in conducting testing for internal controls over compliance and compliance. A random sample of 40 payroll transactions were selected for testing. Effect: Ineffective internal controls related to the tracking of overtime hours results in incorrect reimbursement requests submitted for reimbursement. Such errors may result in ineligible costs charged to the program. Questioned Costs: None reported. Cause: Controls are not suitably designed to ensure Operation Stonegarden hours are accurately tracked. Recommendation: We recommend the City strengthen internal controls related to the tracking of Operation Stonegarden overtime costs. As part of the process for requesting reimbursement, we recommend all supporting documentation be reviewed including employee timesheets, daily activity report summaries, OPSG overtime submission forms and reimbursement request forms. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.
Reference Number 2022‐013 Payroll Costs (ALN 97.067 – Homeland Security Grants Program) Corrective Action: We acknowledge the errors in OT hours identified during the audit. It is noteworthy that our diligent grant management staff took immediate corrective action by rectifying the OT hours errors before submitting reimbursement costs to the grantor and fully disclosing them to your team during the auditing testing period. Consequently, no grant funds were incurred or deemed unallowable during this period by the grantor agency. Strengthening Internal Controls: The city of Pharr recognizes the importance of robust internal controls, particularly in the tracking of OPSG overtime costs. We are committed to strengthening our internal controls to prevent future errors and enhance the accuracy of our reimbursement requests. Comprehensive Review Process: As part of the process for requesting reimbursement, we recommend implementing a comprehensive review of all supporting documentation. This includes a meticulous examination of employee timesheets, daily activity report summaries, OPSG overtime submission forms, and reimbursement request forms. Proposed Completion Date: 9/30/2024 Name of contact person: Robert Garcia, Grants Manager 1 Contact: Robert.garcia@pharr‐tx.gov
ALN 21.027 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) Reference Number 2022-014 Program Costs Criteria: Internal controls should be suitably designed to ensure only eligible costs are charged to the program. Only eligible costs should be charged to the program. Condition Found: The City elected to use the standard allowance for revenue loss as allowed under the CSLFRF. The City elected to apply EMS payroll costs as costs as such costs used to support public health as allowed under CSLFRF. The City identified the payroll costs applied to the program for an amount equal to the revenue loss claimed and provided a detail for sample selection and testing. In testing internal controls over compliance and compliance, we noted one employee in the sample selected was a library employee during the pay period tested rather than EMS. Context: Condition was noted in conducting testing for internal controls over compliance and compliance over allowable costs and allowable activities in a random sample of 40 payroll transactions. Sample size was expanded to 71 and no other exceptions were noted. Effect: The effect of this matter results in unallowed costs. Questioned Costs: None reported. Cause: The employee was a library employee and later transferred to the EMS department in March 2022. The employee was erroneously included in the listing of EMS employees for the fiscal year ended September 30, 2022 in the list of costs claimed to the program. Recommendation: We recommend the City implement controls to ensure all costs identified as having been charged to the program are allowable. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.
Show full finding ▾Hide full finding ▴ALN 21.027 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (CSLFRF) Reference Number 2022-014 Program Costs Criteria: Internal controls should be suitably designed to ensure only eligible costs are charged to the program. Only eligible costs should be charged to the program. Condition Found: The City elected to use the standard allowance for revenue loss as allowed under the CSLFRF. The City elected to apply EMS payroll costs as costs as such costs used to support public health as allowed under CSLFRF. The City identified the payroll costs applied to the program for an amount equal to the revenue loss claimed and provided a detail for sample selection and testing. In testing internal controls over compliance and compliance, we noted one employee in the sample selected was a library employee during the pay period tested rather than EMS. Context: Condition was noted in conducting testing for internal controls over compliance and compliance over allowable costs and allowable activities in a random sample of 40 payroll transactions. Sample size was expanded to 71 and no other exceptions were noted. Effect: The effect of this matter results in unallowed costs. Questioned Costs: None reported. Cause: The employee was a library employee and later transferred to the EMS department in March 2022. The employee was erroneously included in the listing of EMS employees for the fiscal year ended September 30, 2022 in the list of costs claimed to the program. Recommendation: We recommend the City implement controls to ensure all costs identified as having been charged to the program are allowable. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.
Corrective Action: Employee Classification Review: - Conducts a comprehensive review of all employees claimed under the CSLFRF program. - Verify that each employee included in the program's cost claims is correctly categorized based on their role and department. - Ensure that payroll records accurately reflect the departmental assignments of each employee for the relevant fiscal year. Internal Controls Enhancement: - Strengthen internal controls related to cost allocation for federally funded programs. - Implement a review process for payroll costs charged to federal programs, including periodic audits or cross‐checks against departmental records. - Establish clear guidelines and documentation requirements for including employees in federally funded programs. Training and Communication: - Train relevant personnel, including payroll staff and departmental managers, on correctly classifying and documenting costs for federally funded programs. - Ensure that all staff involved in cost allocation know the requirements and guidelines set forth by the CSLFRF program. Regular Monitoring and Reporting: - Develop a monitoring schedule to review costs claimed under the CSLFRF program regularly. - Generate reports to track payroll costs associated with the program and compare them against departmental records. - Implement a reporting mechanism to alert management of any discrepancies or inconsistencies in cost allocation. Documentation and Record‐Keeping: - Maintain thorough documentation of employee assignments, payroll records, and cost allocation for the CSLFRF program. - Establish a centralized repository for all documents related to federally funded programs for easy access during audits or reviews. Management Oversight: - Assign responsibility to a designated individual or team to oversee compliance with cost allocation requirements for the CSLFRF program. - Regularly review the corrective action plan's implementation progress and address any issues or challenges. Proposed Completion Date: 9/30/2024 Name of contact person: Robert Garcia, Grants Manager 1 Contact: Robert.garcia@pharr‐tx.gov
FAC accepted this audit on May 19, 2022 — management decision was due November 19, 2022.
FAC accepted this audit on January 31, 2022 — management decision was due July 31, 2022.
Per the Compliance Supplement for CDBG, Environmental Reviews: Projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from RROF and environmental certification requirements. Per 24 CFR Section 570.506 ? Records to be maintained: Each recipient shall establish and maintain sufficient records to enable the Secretary to determine whether the recipient has met the requirements of this part. Effect: The City of Pharr has not met the compliance requirement for rehabilitation projects. When CDBG funds are used for rehabilitation, the grantee must ensure that the work is properly completed (24 CFR section 570.506) Cause: Weak departmental control over document retention and recent turnover in the CDBG department during the auditor?s fieldwork has caused the City of Pharr failure to provide documentation to meet the special test for the selected subrecipient?s activity. Recommendation: The department should verify reporting requirements for all federal programs are met on a timely basis and evidence of such be available for auditor inspection during audit fieldwork.Questioned Cost: $38,100.00
Show full finding ▾Hide full finding ▴Schedule Reference (2020-002) Community Development Block Grant (CDBG) ? Special Test and Provisions ? Environmental ReviewsSIGNIFICANT DEFICIENCY Criteria: The auditor randomly selected subrecipients of the CDBG program during the audit year in scope. The subrecipient?s activities as noted in the Activity Summary Report were described as "to provide housing rehabilitation to three (3) single-family residential units and two complete (2) reconstructions.? After inquiry and documentation request, the auditor was unable to verify the City of Pharr, as the grantee, ensured pre-rehabilitation inspections were conducted, verified deficiencies were corrected, and work was properly completed in accordance with contract specifications. The special test was not met. Additionally, the City of Pharr was unable to provide the auditor evidence an environmental review for the selected project occurred, such as the Green Building Retrofit Checklist. The special test was not met. Condition: Per the Compliance Supplement for CDBG, Environmental Reviews: Projects must have an environmental review unless they meet criteria specified in the regulations that would exempt or exclude them from RROF and environmental certification requirements. Per 24 CFR Section 570.506 ? Records to be maintained: Each recipient shall establish and maintain sufficient records to enable the Secretary to determine whether the recipient has met the requirements of this part. Effect: The City of Pharr has not met the compliance requirement for rehabilitation projects. When CDBG funds are used for rehabilitation, the grantee must ensure that the work is properly completed (24 CFR section 570.506) Cause: Weak departmental control over document retention and recent turnover in the CDBG department during the auditor?s fieldwork has caused the City of Pharr failure to provide documentation to meet the special test for the selected subrecipient?s activity. Recommendation: The department should verify reporting requirements for all federal programs are met on a timely basis and evidence of such be available for auditor inspection during audit fieldwork.Questioned Cost: $38,100.00
City Response and Implementation Plan of Action(s): We agree with this finding. We have proactively created a CDBG guidance manual that will be submitted within 30 days for city council approval. The purpose of this manual is to provide management support to CDBG-funded grant activities while ensuring that all subrecipient agencies adhere to federal and City of Pharr rules and requirements. The "Agency" or "Agencies" refer to Sub-recipient entities that include nonprofits, City of Pharr departments, public agencies, and other government organizations that will assume responsibility for environmental review and decision-making under the National Environmental Policy Act of 1969 (NEPA) and other related provisions of law, generally found in HUD regulations in 24 CFR 58.Furthermore, we will provide each subrecipent grantee with a checklist to complete the appropriate environmental review and public notification process. Staff will then process it and send it to HUD for final approval, a compliance certification (Enviro mental Certification) with environmental laws, and a Request for Release of Funds from environmental conditions.
Per 2 CFR Section 200.303 (a) ? Internal Controls: The Non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Effect: Auditor noted a lack of evidence and incomplete monitoring procedures, concluding ineffective operating controls over the grant. Cause: Per auditor inquiries, the City of Pharr?s management has informed the auditor the process for approving a grant-wide policy and procedure manual has been delayed. Additionally, reliance on the CDBG department for grant management has caused hierarchal issues when it relates to accountability of the City-wide grant-management department. Recommendation: The auditor recommends the City of Pharr adopt an internal control standard, specifically, the Standards for Internal Control in the Federal Government, which is provided by the US Government Accountability Office, also known as the Green Book. The auditor recommends management review of Part 6 of the Compliance Supplement to gain insights related to internal controls for non-compliance. Additionally, management must enforce an internal accountability process to verify that designed controls are effective on a periodic basis. Questioned Cost: -$0-
Show full finding ▾Hide full finding ▴Schedule Reference (2020-003) City-wide internal control effectiveness in relation to grant management SIGNIFICANT DEFICIENCYCriteria: During inquiry and request of policies and procedures within the grant department, the auditor noticed internal controls were properly designed within the CDBG department, which include controls in the forms of checklists, assignment of responsibilities, established deadlines, and monitoring procedures for compliance. Auditor selected a random sample of subrecipients to verify monitoring controls were effective. During auditor test of operating effectiveness, the auditor concluded ineffective controls due to a lack of evidence retention, empty checklists, and lack of monitoring of subrecipients as designed in the policies and procedures. Condition: Per 2 CFR Section 200.303 (a) ? Internal Controls: The Non-Federal entity must: establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Effect: Auditor noted a lack of evidence and incomplete monitoring procedures, concluding ineffective operating controls over the grant. Cause: Per auditor inquiries, the City of Pharr?s management has informed the auditor the process for approving a grant-wide policy and procedure manual has been delayed. Additionally, reliance on the CDBG department for grant management has caused hierarchal issues when it relates to accountability of the City-wide grant-management department. Recommendation: The auditor recommends the City of Pharr adopt an internal control standard, specifically, the Standards for Internal Control in the Federal Government, which is provided by the US Government Accountability Office, also known as the Green Book. The auditor recommends management review of Part 6 of the Compliance Supplement to gain insights related to internal controls for non-compliance. Additionally, management must enforce an internal accountability process to verify that designed controls are effective on a periodic basis. Questioned Cost: -$0-
City Response and Implementation Plan of Action(s): We agree with this finding. We have proactively created a CDBG guidance manual that will be submitted within 30 days for city council approval. The purpose of this manual is to provide management support to CDBG-funded grant activities while ensuring that all subrecipient agencies adhere to federal and City of Pharr rules and requirements. The "Agency" or "Agencies" refer to Sub-recipient entities that include nonprofits, City of Pharr departments, public agencies, and other government organizations that will assume responsibility for environmental review and decision-making under the National Environmental Policy Act of 1969 (NEPA) and other related provisions of law, generally found in HUD regulations in 24 CFR 58. Furthermore, we will provide each subrecipent grantee with a checklist to complete the appropriate environmental review and public notification process. Staff will then process it and send it to HUD for final approval, a compliance certification (Enviro mental Certification) with environmental laws, and a Request for Release of Funds from environmental conditions.
N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴N/A
Show full finding ▾Hide full finding ▴FAC accepted this audit on May 6, 2020 — management decision was due November 6, 2020.
FAC accepted this audit on April 4, 2019 — management decision was due October 4, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on March 16, 2018 — management decision was due September 16, 2018.
FAC accepted this audit on March 9, 2017 — management decision was due September 9, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Browse other Single Audit organizations in Texas →
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Add it to a monitored group and get alerted when a new audit, finding, repeat finding, or management-decision deadline shows up — instead of checking back.
Checking several at once? Portfolio view →
© 2026 Single Audit Intelligence. All data is public domain.
