FAC Explorer

Finding 34035 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-07-19
Audit: 34742
Organization: The Beacon of Downtown Houston (TX)
Auditor: Blazek & Vetterling

AI Summary

  • Core Issue: The Beacon did not obtain required fidelity bond coverage as per contract stipulations.
  • Impacted Requirements: Compliance with Section BB of the subgrantee contract and 10 TAC §1.406 is necessary for financial protection.
  • Recommended Follow-Up: Ensure The Beacon identifies and adheres to all contract provisions to prevent financial risks.

Finding Text

Finding #2022-001 ? Other Noncompliance Applicable federal program: U. S. Department of the Treasury Passed through Coalition for the Homeless of Houston/Harris County Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 Contract #: 967571915 Contract year: 09/01/21 ? 08/31/22 Criteria: Section BB of The Beacon?s subgrantee contract requires The Beacon to maintain adequate fidelity bond coverage as set forth in 10 TAC ?1.406. Condition and context: The Beacon failed to obtain fidelity bond coverage. Cause: The Beacon did not maintain fidelity bond coverage required by the contract. Effect: Financial losses could be incurred without adequate coverage. Recommendation: Ensure The Beacon identifies and complies with all contract provisions. Views of responsible officers and planned corrective action: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

FINDINGS ? FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Finding #2022-001 ? Other Noncompliance Applicable federal program: U. S. Department of the Treasury Passed through Coalition for the Homeless of Houston/Harris County Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #21.027 Contract #: 967571915 Contract year: 09/01/21 ? 08/31/22 Recommendation: Ensure The Beacon identifies and complies with all contract provisions. Planned corrective action: The Beacon has purchased and will maintain fidelity bond coverage that satisfies the requirements that are set forth in 10 TAC ?1.406. In addition, the Beacon has increased its staff capacity to review contracts and processes to ensure that they are compliant with internal and external standards and regulations. Responsible officer: Rebecca Landes, Chief Executive Officer Estimated completion date: April 5, 2023

Categories

Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $420,827
21.023 Emergency Rental Assistance Program $272,737
14.218 Community Development Block Grants/entitlement Grants $113,970
14.267 Continuum of Care Program $88,597
97.024 Emergency Food and Shelter National Board Program $27,257
14.231 Emergency Solutions Grant Program $3,725