Catholic Charities of Dallas, Inc.

Finding number: 2024-001 Criteria: Policies and procedures over reporting are critical to reduce the risk that reports will be submitted accurately and timely. Condition: Control procedures were not effectively in place to ensure the required reporting was submitted by the due date. Cause: During the year-ended June 30, 2024, two out of four reports tested were submitted after the specified due date outlined by the grantor. This was caused by oversight in submitting reports on-time. Recommendation: We recommend proper controls be implemented to ensure that all reports are submitted to the grantor by the specified reporting due dates to ensure proper compliance. Management Response The internal control deficiency noted is related to the 2023-2024 Resettlement Program required compliance reporting of program activity. There were various situations last year where the program did not make sure the reports were keyed into the MRIS system by the due date. To prevent the noncompliance in the future the following actions will be taken: • The R&P team has established a delegate to submit the report in any event the R&P specialist is out on leave to avoid any delays. • The reception and placement team has created quarterly calendar reminders for the R&P team to submit the report. • The reception and placement team has created quarterly calendar reminders for the accounting team to approve the report after approval by either the Director Refugee Services or Chief Service Officer. • R&P will make it a priority to communicate with accounting when the submission of the report has been completed and then confirm approval with accounting to bridge any gaps of communication. 41

Criteria: Costs must meet seven general criteria in order to be allowable under Federal awards as defined by 45 CFR 75.403(g). Condition: During our testing of this compliance requirement, we noted that in one out of our sample of 25 non-payroll expenditures tested, there was not sufficient documentation available to determine if allowable costs were adequate under the grant agreement. Questioned Costs $211.39 Context: An employee lost the supporting receipt, and therefore, completed the Agency created `Form for Lost Receipts? and submitted that form for reimbursement. The description on the form was not adequate to determine allowability. Cause: The P-Card system reimbursed the employee, as the policy at the time had been to provide the 'lost receipt' form due to the policy stating that in the absence of a receipt, the employee is to provide the form explaining what the expense related to. Effect: The Agency may have reimbursed the employee for personal expenses not related to the federal program. Repeat Finding: No Recommendation: We recommend that the Agency implement a policy requiring that all program expenses require receipts and are properly approved and authorized by Program Directors. Views of responsible officials: The Agency has modified the policy to ensure receipts for expenditures are submitted before an expense gets reimbursed.