EIN: 746002392
UEI: FJQBXVS33VV4
Audited by: WHITLEY PENN, LLP
Oversight agency: 84 [Department of Education]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 12, 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 August 12, 2026 (21 days ago).
What is a management decision? →FAC accepted this audit on January 13, 2025 — management decision was due July 13, 2025.
FAC accepted this audit on February 10, 2026 — management decision was due August 10, 2026.
FAC accepted this audit on March 11, 2026 — management decision was due September 11, 2026.
FAC accepted this audit on January 12, 2024 — management decision was due July 12, 2024.
Criteria As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established “reporting” compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit special reporting related to real property subject to the terms and conditions of the contract. Condition During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual form SF-429 for Head Start. Cause The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect The lack of effective controls creates an environment in which errors could go undetected. Context The District failed to submit the annual SF-429 report for the reporting period ending November 30, 2022 in a timely manner and the report is delinquent. Repeat Finding Repeat finding of 2022-004 Recommendation We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan See corrective action plan.
Show full finding ▾Hide full finding ▴Criteria As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established “reporting” compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit special reporting related to real property subject to the terms and conditions of the contract. Condition During the fiscal year ended August 31, 2023, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual form SF-429 for Head Start. Cause The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect The lack of effective controls creates an environment in which errors could go undetected. Context The District failed to submit the annual SF-429 report for the reporting period ending November 30, 2022 in a timely manner and the report is delinquent. Repeat Finding Repeat finding of 2022-004 Recommendation We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan See corrective action plan.
Effective with the 2023-2024 fiscal period, the District created an Audit Specialist position within the Business Office. The Audit Specialist will assume responsibility for all grant reporting. The Audit Specialist will receive training on the reporting requirements for each grant. All reporting deadlines will be entered on the master department calendar that is maintained in Microsoft Outlook. The Audit Specialist will create the master calendar and the Assistant Superintendent of Business and Operations will verify and approve the calendar. Reminders for each report will be calendared with reminders sent one month prior to the due date, two weeks prior to the due date, one week prior to the due date, and one day prior to the due date. Electronic reports will be printed and physically signed by the person completing the reimbursement or report and the Assistant Superintendent of Business and Operations. The paper copy will be maintained in Grant Files. When available, security access will require one employee to submit the report and the Assistant Superintendent of Business and Operations to approve the report within the grant portal. Estimated Completion Date: August 2024 Management Contact: Margaret Lee
2022-004
FAC accepted this audit on January 30, 2023 — management decision was due July 30, 2023.
During the fiscal year ended August 31, 2022, the District did not have effective internal controls over compliance with the allowable costs/cost principles requirement described above. The District requested reimbursement from the ESF for $328,378 in expenditures for services that had not been received. Cause: The District did not have adequately designed controls in place to ensure compliance with the allowable costs/cost principles requirement. Effect or Potential Effect: The District was not in compliance with the allowable costs/cost principles requirement. Questioned Costs: $328,378 Context: Of the approximately $5.63 million reimbursed from the ESF, $328,378 in expenditures claimed for reimbursement were for services that had not been received. This was identified as a result of our audit procedures and the District adjusted the reported expenditures to reduce expenditures by this amount, and record the balance as "due to other governments" as of August 31, 2022. Recommendation: We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2022-003 Information on Federal Program: Assistance Listing 84.425 ? Education Stabilization Fund United States Department of Education Pass-Through Entity: Texas Department of Education Award Number: S425U210042 Compliance Requirements: Allowable Costs/Cost Principles Type of Finding: Material Weakness in Internal Control Over Compliance and Noncompliance (Questioned Costs over $25,000 for a Major Program) Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Education established ?allowable costs/cost principles? compliance requirement applicable to the Education Stabilization Fund which stipulates that direct costs be specifically identified and that services have been received prior to the reimbursement of expenditures. Condition: During the fiscal year ended August 31, 2022, the District did not have effective internal controls over compliance with the allowable costs/cost principles requirement described above. The District requested reimbursement from the ESF for $328,378 in expenditures for services that had not been received. Cause: The District did not have adequately designed controls in place to ensure compliance with the allowable costs/cost principles requirement. Effect or Potential Effect: The District was not in compliance with the allowable costs/cost principles requirement. Questioned Costs: $328,378 Context: Of the approximately $5.63 million reimbursed from the ESF, $328,378 in expenditures claimed for reimbursement were for services that had not been received. This was identified as a result of our audit procedures and the District adjusted the reported expenditures to reduce expenditures by this amount, and record the balance as "due to other governments" as of August 31, 2022. Recommendation: We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan: See corrective action plan.
2022-003 Allowable Costs/Cost Principles Type of Finding: Material Weakness in Internal Control Over Compliance and Noncompliance Federal programs purchases go through multiple approvals prior to issuing a purchase order. Approvals include the grant program administrator, director of purchasing, director of finance, and assistant superintendent of business and operations, and superintendent at a minimum. All approving staff have attended federal programs training including ESSER training. Since the questioned costs went through the established approval procedures, all staff with responsibility of approving grant purchases will attend additional training on allowable costs including a refresher training each semester beginning with the Spring 2023 semester. Training should be continuous and ongoing since question-and-answer documents are constantly updated and changed. To address the specific finding in the audit, the director of finance will establish pre-paid accounts in the general fund that will be used to record subscriptions and contracts that extend beyond the current fiscal year. At the end of the fiscal year, the director of finance will move expenditures associated with the fiscal year to the grant through a journal entry. In addition, the pre-paid account will be reconciled with the balance of each subscription identified in the reconciliation. The list of pre-paid subscriptions and the journal entry will both be reviewed and approved by the assistant superintendent of business and operations as a part of newly established operating procedures. Estimated Completion Date: January 2023 Management Contact: Margaret Lee
During the fiscal year ended August 31, 2022, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual financial forms SF-425 and SF-429 for Head Start. Cause: The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect: The lack of effective controls creates an environment in which errors could go undetected. Context: The District failed to submit the annual SF-425 financial report and SF-429 real property status report for the reporting period ending November 30, 2021 in a timely manner and the report became delinquent. Upon the District?s request, the granting agency agreed to an extension of the deadline and the SF-425 financial report was submitted by the District on November 4, 2022 and the SF-429 report was submitted on November 7, 2022. Recommendation: We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan: See corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2022-004 Information on Federal Program: Assistance Listing 93.600 ? Head Start Cluster United States Department of Health and Human Services Award Number: 06CH010751-03 Compliance Requirements: Reporting Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: As a condition of receiving Federal awards, non-Federal entities agree to comply with laws, regulations and the provisions of grant agreements and contracts, and to maintain internal control to provide reasonable assurance of compliance with these requirements. The Department of Health and Human Services established ?reporting? compliance requirement applicable to the Head Start Cluster which stipulates that recipients submit financial reporting forms of program revenues and expenditures subject to the terms and conditions of the contract. Condition: During the fiscal year ended August 31, 2022, the District did not have effective internal controls over compliance with the reporting requirement described above. The District was delinquent in its submission to the granting agency of its annual financial forms SF-425 and SF-429 for Head Start. Cause: The District did not have adequately designed controls in place to ensure compliance with the reporting requirement. Effect or Potential Effect: The lack of effective controls creates an environment in which errors could go undetected. Context: The District failed to submit the annual SF-425 financial report and SF-429 real property status report for the reporting period ending November 30, 2021 in a timely manner and the report became delinquent. Upon the District?s request, the granting agency agreed to an extension of the deadline and the SF-425 financial report was submitted by the District on November 4, 2022 and the SF-429 report was submitted on November 7, 2022. Recommendation: We recommend that the District review its internal controls over compliance to ensure controls are suitably designed and are in place to prevent, or detect and correct, noncompliance with applicable compliance requirements. Views of Responsible Officials and Planned Corrective Action Plan: See corrective action plan.
2022-004 Compliance Requirements: Reporting Finding: Material Weakness in Internal Control Over Compliance Effective January 2023, business office personnel responsible for grant accounting will meet with grant managers to discuss grant activity and obtain approval for reimbursements. The assistant superintendent of business and operations, Margaret Lee, will be responsible for scheduling the monthly meetings between business office staff and grant managers. Margaret Lee will establish a master calendar of grant reporting deadlines that will be reviewed at each monthly meeting between business office staff and grant managers. As a part of the monthly balance sheet reconciliation and review, accounting staff will review grant reimbursement requests from the prior month and ensure that funds were received and recorded to the appropriate account. Evidence of communications with the granting agency will be required to document any revenues that were not received and/or recorded. If communications from the granting agency are not provided, the assistant superintendent for business and operations will be responsible for contacting the granting agency directly to follow up on the reporting requirements and reimbursement status. Estimated Completion Date: August 2023 Management Contact: Margaret Lee
FAC accepted this audit on January 24, 2022 — management decision was due July 24, 2022.
FAC accepted this audit on January 4, 2021 — management decision was due July 4, 2021.
FAC accepted this audit on January 7, 2020 — management decision was due July 7, 2020.
FAC accepted this audit on February 6, 2019 — management decision was due August 6, 2019.
FAC accepted this audit on February 18, 2018 — management decision was due August 18, 2018.
FAC accepted this audit on January 23, 2017 — management decision was due July 23, 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.
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