Audit 300728

FY End
2023-06-30
Total Expended
$1.02M
Findings
12
Programs
4
Organization: Barrett Foundation (NM)
Year: 2023 Accepted: 2024-03-29
Auditor: Cordova CPAS LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
389851 2023-001 Significant Deficiency - G
389852 2023-001 Significant Deficiency - G
389853 2023-001 Significant Deficiency - G
389854 2023-002 Significant Deficiency - N
389855 2023-002 Significant Deficiency - N
389856 2023-002 Significant Deficiency - N
966293 2023-001 Significant Deficiency - G
966294 2023-001 Significant Deficiency - G
966295 2023-001 Significant Deficiency - G
966296 2023-002 Significant Deficiency - N
966297 2023-002 Significant Deficiency - N
966298 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $306,263 Yes 0
14.231 Emergency Solutions Grant Program $238,711 - 0
14.267 Continuum of Care Program $73,531 Yes 2
97.024 Emergency Food and Shelter National Board Program $46,000 - 0

Contacts

Name Title Type
XFJNTARQA857 Cory Lee Auditee
5052469244 Bobby Cordova Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Barrett Foundation, Inc. and is presented on the modified accrual basis of accounting, which is the same basis as was used to prepare the financial statements. The information in this Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: Barrett Foundation, Inc. did not elect to use the allowed 10% indirect cost rate.

Finding Details

2023‐001 — Compliance over Matching – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We are working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing policies to address contracts that require match.
2023‐001 — Compliance over Matching – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We are working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing policies to address contracts that require match.
2023‐001 — Compliance over Matching – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We are working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing policies to address contracts that require match.
2023‐002 — Controls over Compliance –Rent Reasonableness – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Special Tests and Provisions Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors’ Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation’s server to show evidence that all policies and procedures were followed. Management’s Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted in Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.
2023‐002 — Controls over Compliance –Rent Reasonableness – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Special Tests and Provisions Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors’ Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation’s server to show evidence that all policies and procedures were followed. Management’s Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted in Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.
2023‐002 — Controls over Compliance –Rent Reasonableness – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Special Tests and Provisions Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors’ Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation’s server to show evidence that all policies and procedures were followed. Management’s Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted in Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.
2023‐001 — Compliance over Matching – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We are working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing policies to address contracts that require match.
2023‐001 — Compliance over Matching – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We are working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing policies to address contracts that require match.
2023‐001 — Compliance over Matching – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Matching Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses for the year which was less than the required 25%. Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind contributions from other sources (24 CFR section 578.73(a)). Effect: Barrett Foundation under matched the required amount for the Continuum of Care program. Questioned Costs: None Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in compliance with the required match for the fiscal year. Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the Continuum of Care program. Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new programs. We recognize that while progress has been made, some issues continue to need attention. We are working diligently with our community partners to meet their matching requirements and expect to not experience this issue in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing policies to address contracts that require match.
2023‐002 — Controls over Compliance –Rent Reasonableness – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Special Tests and Provisions Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors’ Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation’s server to show evidence that all policies and procedures were followed. Management’s Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted in Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.
2023‐002 — Controls over Compliance –Rent Reasonableness – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Special Tests and Provisions Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors’ Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation’s server to show evidence that all policies and procedures were followed. Management’s Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted in Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.
2023‐002 — Controls over Compliance –Rent Reasonableness – (Significant Deficiency) Federal Program Information: Funding Agency: Housing and Urban Development Title: Continuum of Care Assistance Listing Number: 14.267 Compliance Requirement: Special Tests and Provisions Award Year: July 1, 2022 to June 30, 2023 Condition: During our audit, we noted that Barrett Foundation had one of three tenants sampled who did not have evidence that the rent reasonableness form was reviewed or approved. Criteria: Barrett Foundation has a policy that its process over the rent reasonableness requirement is for one employee to fill out a rent reasonableness form and the supervisor to review and approve it before any rent payments are made on behalf of the client. Effect: Barrett Foundation did not have evidence that it followed its policy over the rent reasonableness requirement. Questioned Costs: None Cause: Barrett Foundation did not file the signed version of the rent reasonableness form and only had the unsigned version to show for the audit. This was due to turnover and certain documents not being filed correctly. Auditors’ Recommendation: We recommend that Barrett Foundation ensure that all signed documents are scanned into the Foundation’s server to show evidence that all policies and procedures were followed. Management’s Response: In FY23, Barrett Foundation experienced significant staffing shortages which resulted in Rent Reasonableness forms not being reviewed or signed. During FY24, Barrett Foundation audited all case files to address incomplete documentation. We also updated our standard operating procedures to indicate that rent reasonableness forms are completed annually as well as when a participant enters the programs, moves to a different unit, if there is a rent increase and that supervisors review and sign the form. Additionally, supervisors will begin conducting monthly random audits of client files to ensure that all required documentation is completed.