A report by the state auditor released today found that because of poor documentation it was impossible to determine how child-care provider Beacon of Hope Foster Care Agency Inc. spent its $1.5 million budget of federal and state funds in 2009.

The critique of Beacon of Hope, which last year served 218 children in Corpus Christi and Harlingen, was part of a review of five of the state's 232 child-care providers. The audit criticized Seton Home of San Antonio and Houston Serenity for failing to provide documents to support how they spent federal and state funds. Harmony Family Services of Abilene and Behavioral Healthcare Services Inc. of Arlington got clean financial bills of health from the auditor.

The audit criticized Beacon of Hope for lack of or poor documentation while preparing its report of costs in 2009. Revenue and expense records were inconsistent, and several expenditures were either not allowed or understated, the report said.

In a letter to the auditor agreeing in principle with the findings in the report, Adriana Orozco, executive director of Beacon of Hope, said changes would be made in documenting and reporting to address the Auditor's concerns. Orozco told the auditor that Beacon of Hope disagreed that its lapses constituted serious financial weakness.

Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org.

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