Finding 396152 (2020-005)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2020
Accepted
2024-05-08
Audit: 305763
Organization: Bristlecone Family Resources (CA)

AI Summary

  • Core Issue: There's a significant weakness in how eligibility for the federal program is documented and verified.
  • Impacted Requirements: Individuals may not comply with HUD's eligibility standards due to the absence of formal processes.
  • Recommended Follow-Up: Create and implement a policy for verifying income through methods like credit checks and employer history.

Finding Text

Type of Finding: Material Weakness over Major Federal program Criteria: Eligibility with the Federal award program Condition and Context: Entity has no formal documentation or verification process of individuals who are in the program. No formal policy is maintained. Effect: Individuals in the program may not meet the compliance requirements set out by HUD. Cause: Lack of proper understanding of eligibility requirements. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that the Organization adopt and establish a policy to verify income via credit checks, background checks, employer history, or other forms of verification.

Corrective Action Plan

Management’s Views: Management has identified and implemented processes and procedures that will ensure that the general ledger is properly supported by appropriate documentation and journal entries reviewed by someone other than the preparer, in order to ensure that amounts reported in the financial statements are appropriately accounted for in accordance with generally accepted accounting principles.

Categories

Eligibility HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 972594 2020-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $588,878
93.959 Block Grants for Prevention and Treatment of Substance Abuse $507,611
64.024 Va Homeless Providers Grant and Per Diem Program $115,500