Finding 1175586 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-26

AI Summary

  • Core Issue: Two out of three sectors of the Tri-Partite board had vacancies for over nine months, violating CSBG requirements.
  • Impacted Requirements: CSBG Act mandates that boards must be fully staffed to ensure effective program administration.
  • Recommended Follow-Up: Board and management should prioritize filling the public and low-income sector vacancies to comply with regulations.

Finding Text

2025-001 Compliance and Controls over Tri-Partite Board Requirement for the Community Services Block Grant (Significant Deficiency) Federal Agency: Department of Health and Human Services Program Name: Community Services Block Grant (CSBG) Assistance Listing Number: 93.569 Award period: Year ended June 30, 2025 Criteria: The CSBG Act USC 9910(b) requires that public organizations administer CSBG programs through a Tri-Partite board. According to the Kansas CSBG Policy and Procedure Manual, section 6310, vacant board seats must be filled within nine months of the seat becoming vacant. Condition: We have determined that two of the three sectors had vacancies during the fiscal year for over nine months. Cause: The Organization was unable to fill the vacancies. Effect: The Organization may not run effectively with no representation from the public sector and two vacancies related to the low-income sector. Recommendation: We recommend the Board of Directors and management work to fill the vacancies in the public and low-income sectors. Questioned costs: None. Repeat Finding: N/A. Views of Responsible Officials and Planned Corrective Actions: Management and the Board of Directors agree with the finding and have been actively working to fill the vacancies, including directly working with the Kansas Housing Resource Center.

Corrective Action Plan

FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL PROGRAMS FEDERAL AGENCY: DEPARTMENT OF HEALTH AND HUMAN SERVICES PASS THROUGH ENTITY: KANSAS HOUSING RESOURCE CORPORATION PROGRAM NAME: COMMUNITY SERVICES BLOCK GRANT ASSISTANCE LISTING NUMBER: 93.569 AWARD PERIOD: YEAR ENDED JUNE 30, 2025 2025-001 Compliance and Controls over Tri-Partite Board Requirement for the Community Services Block Grant (Significant Deficiency) Recommendation: We recommend the Board of Directors and management work to fill the vacancies in the public and low-income sectors. Action Taken (Unaudited): Mid-Cap turns in a report to KHRC monthly, has board discussion and has restructured board recruitment. Planned completion for filling all vacancies is 2/6/2026.

Categories

Significant Deficiency

Other Findings in this Audit

  • 1175585 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.569 COMMUNITY SERVICES BLOCK GRANT $527,780
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $189,000
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $2,187