FAC Explorer

Finding 1162013 (2024-007)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-11-06
Audit: 371876
Organization: Bill Wilson Center (CA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: Missing documents and ineligible costs totaling $113,280 were identified during the audit, impacting financial accuracy.
  • Impacted Requirements: The organization failed to secure critical documents and properly review expenses, leading to potential funding risks.
  • Recommended Follow-Up: Implement a centralized document management system and enhance training on eligible costs for staff to ensure compliance.

Finding Text

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS MATERIAL WEAKNESS COMPLIANCE 2024-007 – MISSING DOCUMENTS AND ALLOWABLE COSTS IDENTIFICATION OF THE FEDERAL PROGRAM ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds CRITERIA An organization must have a system in place to properly secure and have the ability to retrieve critical documents. Grant revenue should be billed and recognized based on accurate and eligible costs, milestones, or the satisfaction of certain conditions. CONDITION During our testing, we noted the following: 1. Management was unable to provide supporting documents for claimed expenses of $37,007. 2. Management was able to provide advance request forms. 3. There were $76,273 of ineligible costs. CAUSE Management did not secure the documents in a central location that is accessible to those who need access. The costs incurred were not properly reviewed to eliminate ineligible costs or the billing to grantors was not reviewed. Accurate and timely monthly grant billing procedures were not performed. EFFECT The effect for missing documents is that key financial statement amounts will not be supported. The inability to produce appropriate supporting documents will lead to questioned costs or produce inconsistent results. Ineligible costs will lead to inaccurate financial statements for revenue and receivables. Also, claiming ineligible costs could jeopardize future funding or place the Organization in a negative position with the funder. QUESTION COSTS $37,007 for missing documents. $76,273 for ineligible costs. RECOMMENDATION Management should develop a system to store and categorize electronic and paper documents so that they can be easily accessible. Management has policies in place for billing; however, more attention is required when reviewing expenses being charged to a respective awards. Training on eligible costs should be provided to program and accounting staff. MANAGEMENT’S RESPONSE AND PLANNED CORRECTIVE ACTION See attached corrective action plan

Corrective Action Plan

For ALN 21.027 Coronavirus State and Local Fiscal Recovery, There was a staffing change for the program between June to September 2024. The new program team met with the OSH’s fiscal team to review billing requirements and spending guidelines in the beginning of FY24-25. Starting October 2024, the new program team followed the guideline to restrict allowable expenses for clients only to the following: ● Tenant rent portion only on an emergency or as needed basis ● Move in deposit ● Housing application fees In FY24-25, clients came from referrals from OSH as agreed upon. Client eligibility is verified by data in HMIS by the program team. Client files are stored in locked cabinets in the program team’s office. All time entries are reviewed, approved, submitted, processed and saved in Paycom.

Categories

Questioned Costs Allowable Costs / Cost Principles Eligibility Material Weakness

Other Findings in this Audit

  • 1162014 2024-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.658 Foster Care Title IV-E, AFDC-FC - THP-Non Minor Dependent (0268.18.01), passed through the County of Santa Clara $856,508
14.218 CDBG Enclave Renovation Project (6/30/24), passed through the City of San Jose $773,014
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood, passed through the County of Santa Clara $717,224
14.276 Rapid Rehousing Program (12/31/2024) $667,898
14.267 Rapid ReHousing for Homeless Youth, passed through County of Santa Clara Office of Supportive Housing $518,250
21.027 Coronavirus State and Local Fiscal Recovery Funds, Emergency Housing Voucher Program, passed through County of Santa Clara $502,060
14.267 Transitional Housing for YYF South County (ends 3/31/2024) $405,471
14.267 Rapid ReHousing for Youth (ends 11/30/2023) $315,043
16.575 Crime Victim Assistance, VOCA - Specialized Emergency Housing Program (ends 9/30/2024), passed through California Office of Emergency Services $251,117
14.267 Transitional Housing to Rapid Rehousing for Youth (ends 11/30/2024) $209,797
93.623 Basic Center Grant, RHY- Basic Center Grant - South County (ends 9/29/24) $180,658
16.575 Crime Victim Assistance, VOCA - Tranistional Housing Program (ends 12/31/2023), passed through California Office of Emergency Services $169,728
16.575 Crime Victim Assistance, VOCA - Marginalized Victimss Program (ends12/31/2023), passed through California Office of Emergency Services $169,098
93.788 State Opioid Response Grant (SOR III), passed through Sierra Health Foundation $164,255
14.267 Transitional Housing for YYF South County (ends 3/31/2025) $156,541
16.575 Crime Victim Assistance, VOCA - Tranistional Housing Program (ends 12/31/2024), passed through California Office of Emergency Services $156,202
93.623 Basic Center Grant, RHY- Basic Center Grant - North County (ends 9/29/24) $155,033
14.267 Peacock Commons - Permanent Housing (ends 11/30/24) $122,479
93.550 Transitional Living for Homless Youth - Maternity Group Home (ends 9/29/24) $109,933
14.267 Peacock Commons - Permanent Housing (ends 11/30/23) $103,080
16.575 Crime Victim Assistance, VOCA - Homeless Youth and Exploitation Program (ends 6/30/2024), passed through California Office of Emergency Services $97,068
16.575 Crime Victim Assistance, VOCA - Child Abuse Treatment Program (ends 12/31/2023), passed through California Office of Emergency Services $97,000
16.575 Crime Victim Assistance, VOCA - Child Abuse Treatment Program (ends 12/31/2024), passed through California Office of Emergency Services $87,939
93.557 Street Outreach Program (ends 9/29/2024) $86,303
14.267 Transitional Housing for YYF North County (ends 11/30/2023) $81,691
14.267 Transitional Housing to Rapid Rehousing for Youth (ends 11/30/2023) $79,619
16.575 Crime Victim Assistance, VOCA - Specialized Emergency Housing Program (ends 9/30/2023), passed through California Office of Emergency Services $72,257
14.276 Santa Cruz Shared Housing Program (12/31/2024) $69,608
14.276 Santa Cruz Shared Housing Program (12/31/2023) $61,660
93.550 Transitional Living for Homless Youth - Maternity Group Home (ends 9/29/23) $52,219
93.623 Basic Center Grant, RHY- Basic Center Grant - South County (ends 9/29/23) $48,592
93.623 Basic Center Grant, RHY- Basic Center Grant - North County (ends 9/29/23) $43,823
14.218 CDBG Family Therapy and School Outreach Program, passed through the City of Santa Clara $30,000
14.218 CDBG Family and Individual Counseling Services Program, passed through the City of Sunnyvale $25,000
93.557 Street Outreach Program (ends 9/29/2023) $24,371
97.024 Federal Emergency Food and Shelter Board Program - Phase 41 (to 12/31/2024) $17,000
14.218 CDBG Family Advocacy Services Program (to 12/31/2023), passed through the City of Mountain View $3,535