Finding Text
2023-003 Unallowable Matching Contributions – Compliance and Internal Controls over Matching (Material Weakness)
Federal Program Information:
Funding Agency: U.S. Department of Agriculture
FALN: 10.561
Federal Award Identification Numbers: All under this program. See Schedule of Expenditures of Federal Awards.
Pass Through Entity: State of Georgia Department of Human Services
Award Year: 2021-2022, 2022-2023
Federal Program Information:
Funding Agency: U.S. Department of Housing and Urban Development
FALN: 14.231
Federal Award Identification Numbers: All under this program. See Schedule of Expenditures of Federal Awards.
Pass Through Entity: Gwinnett County, Dekalb County, Cobb County, Fulton County
Award Year: 2021-2022, 2022-2023
Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award.
Additionally, under 2 CFR Section 200.306(b) any shared costs or matching funds and all contributions cannot be included as contributions for any other Federal award. They also cannot be paid by the Federal Government under another Federal award, except where the Federal statute authorizing a program specifically provides that Federal funds made available for such program can be applied to matching or cost sharing requirements of other Federal programs.
Condition: The Association used the same matching contributions on both FALN 10.561 and FALN 14.231. Additionally, some matching contributions under FALN 10.561 were paid by the Federal Government under another Federal award.
Effect: The lack of processes and controls set up to track matching contributions resulted in potentially unallowable matching contributions made to both FALN 10.561 and FALN 14.231.
Cause: The Association was not aware of the requirements related to matching and did not have processes and controls set up to track this information.
Questioned Costs: None
Perspective: This finding represents a systemic problem as it potentially affects the matching requirement across all federal programs.
Repeat Finding: Yes, this is a repeat of 2022-003
Recommendation: We recommend the Association establish policies and procedures to ensure that matching contributions are tracked and properly funded.