The meeting between Mr Benson and Healthwatch Worcestershire originally took place on Monday, January 15. WASB is a partner of Worcestershire County Council.
"Rough sleepers and people living in homeless hostels are very vulnerable.
"A formal repayment plan must be put in place to allow the conflicted trustee and general manager to make good the £10,000 losses incurred as a consequence of their actions.
"In this case the charity did not have sufficiently robust policies on controlling its resources and failed to exercise due care.
He said: "The vast majority of the people we try to help are on the streets through a number of unfortunate events. In general people don't choose homelessness as a lifestyle.
They are there as they have nowhere else to go." The project manager added that rough sleepers can be former prisoners, who have lost their homes while in jail, addicts or even victims of domestic violence.
“Through the lens of adversity in childhood the idea that some people have chosen a homeless lifestyle is offensive.” Mr Sutton added that the St Paul's Hostel trustees would like to meet the WASB at the earliest opportunity.