Finding 1175430 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-02-25
Audit: 389195
Organization: Bethany Housing Corporation (CT)
Auditor: WHITTLESEY PC

AI Summary

  • Core Issue: The board of directors is not holding meetings regularly, which affects their oversight responsibilities.
  • Impacted Requirements: Regular meetings are essential for the board to fulfill their fiduciary duties and effectively govern the Project.
  • Recommended Follow-Up: Ensure the board schedules and conducts meetings consistently to enhance oversight of management and financial transactions.

Finding Text

Finding No. 2024-002 – Board Oversight – Other Matter Criteria: Board of directors should convene on a regular basis to fulfill their fiduciary duties and provide governance to the Project. Board of directors should be active and oversee responsibilities of the Project. Condition: During our audit testing, we noted that the board of directors were not holding board meetings regularly. Effect: Board of directors may not be providing sufficient oversight of the management company and the Project’s financial transactions. Cause: Board of directors are not meeting on a regular basis. Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan

Corrective Action Plan

Management will work with the Board of Directors to establish a formal board meeting calendar with meetings scheduled at least quarterly to ensure sufficient oversight and fiduciary responsibilities are fulfilled.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1175427 2024-001
    Material Weakness Repeat
  • 1175428 2024-002
    Material Weakness Repeat
  • 1175429 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $195,672
10.415 RURAL RENTAL HOUSING LOANS $33,852