Finding 22448 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-19

AI Summary

  • Core Issue: The Community Action Agency of Butte County, Inc. did not have enough government sector representatives on its board, violating the tri-partite board requirement.
  • Impacted Requirements: This finding highlights non-compliance with the CSBG Act, which mandates a board composition that includes at least one-third government representatives.
  • Recommended Follow-Up: Implement procedures to fill board vacancies and ensure compliance with the tri-partite board structure moving forward.

Finding Text

Finding 2022-002: Tri-Partite Board Composition Department of Health and Human Services AL # 93.569 Community Services Block Grant Federal Grantor/Pass-Through Grantor Grant Number Grant Period State of CA Department of CSD 21F-4005 01/01/21 - 05/31/22 State of CA Department of CSD 21F-4406 07/01/21 - 05/31/22 State of CA Department of CSD 22F-5005 01/01/22 - 05/31/23 State of CA Department of CSD 20F-3644 ' 03/27/20 - 08/31/22 Questioned Costs: None How were questioned costs computed: Not applicable Condition At times during the year, less than 1/3 of the members of the board of directors of Community Action Agency of Butte County, Inc. were representative of the government sector in accordance with the CSBG program. There were also longstanding vacancies on the board of directors that contributed to Community Action Agency of Butte County, Inc. not meeting this requirement. This is a repeat of finding 2021-005. Criteria The CSBG Act at 42 USC 9910(b), required that public organizations administer the CSBG program through a Tri-Partite board. Cause Community Action Agency of Butte County, Inc. had board vacancies during the year, causing it to not be in compliance with the tri-partite board requirement. Effect Due to the above noted conditions, Community Action Agency of Butte County, Inc. was not in compliance with this compliance requirement and a significant deficiency in internal control over compliance exists. Recommendation We recommend Community Action Agency of Butte County, Inc. establish procedures to ensure the composition of the members of its board of directors meet this requirement. View of Responsible Officials We agree with the recommendation and have begun implementing additional procedures

Corrective Action Plan

2022-002 - Tri-Partite Board Composition Upon request from the California Department of Community Services and Development (CSD), the Agency's Board of Directors submitted a signed Letter of Intent to reduce our Board Membership from 12 members to 9 members. The letter was accepted by CSD. In July of2023 the remaining Public Sector Board vacancy was filled, bringing the Board of Directors to their full complement of 9 members comprised of I/3rd Low-Income Representatives, I/3rd Private Representatives and 113rd Public Representatives. Person(s) Responsible: Danny Xin Liu : 6 months 9/18/2023

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22449 2022-002
    Significant Deficiency Repeat
  • 598890 2022-002
    Significant Deficiency Repeat
  • 598891 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $2.53M
10.569 Emergency Food Assistance Program (food Commodities) $817,504
10.568 Emergency Food Assistance Program (administrative Costs) $422,095
93.569 Community Services Block Grant $232,414
10.766 Community Facilities Loans and Grants $182,641
81.042 Weatherization Assistance for Low-Income Persons $121,253
97.024 Emergency Food and Shelter National Board Program $15,620