Finding 1086108 (2024-001)

- Repeat Finding
Requirement
G
Questioned Costs
-
Year
2024
Accepted
2024-11-21

AI Summary

  • Core Issue: The organization failed to meet the 25% matching requirement for federal grants, providing only 8% for NC 0045 and 4% for NC 0221.
  • Impacted Requirements: Noncompliance with HUD's matching funds criteria could jeopardize future funding and program administration.
  • Recommended Follow-up: Continue discussions with HUD for transferring remaining grants and ensure compliance by March 2025.

Finding Text

Finding 2024-001: Noncompliance with Matching Requirement Recommendation: It is our understanding that the organization has already been in discussions with HUD regarding its inability to secure sufficient matching funds and is seeking to discontinue its administration of this program. As of July 2024, the NC0045 has been transferred to another organization. View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will continue working with HUD to transfer these award programs to another entity that has more capacity of complying with all requirements. As of July 2024, grant NC0045 was transferred to Brick Capital. The Organization is continuing to work with HUD to transfer the NC0221 grant. Name of the Contact Person Responsible for the Corrective Action: Tameka Gunn, President and Chief Executive Officer Planned Completion Date for the Corrective Action Plan: March 2025 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Continuum of Care Program (Northern PSH Combo and Piedmont) Assistance Listing Number: 14.267 Award Period: Northern PSH Combo (Grant no. NC 0045) April 1, 2024 to March 31, 2024 Piedmont (Grant no. NC 0221) June 1, 2023 to May 31, 2024 Type of Finding: Noncompliance Condition and Criteria: Matching requirement is 25% of all grant funds except for leasing funds. However, for Grant no. NC 0045 we noted that the Organization provided matching funds at approximately 8% and for Grant no. NC 0221 we noted that the Organization provided matching funds at approximately 4%. Total expenditures of federal awards was approximately $1.1 million for NC 0221 and $1.2M for NC 0045 these grants. Cause: The Organization and HUD were both aware of the Organization’s past difficulties in securing sufficient matching funds for both of these grant programs. Accordingly, in a prior year HUD waived the matching requirement in order to provide the Organization with more time to attempt to secure sufficient matching funds. However, the Organization was not successful in that effort and HUD declined to provide a waiver that would extend past June 30, 2022. Effect: The Organization has not provided sufficient matching funds and as a result is not in compliance with the 25% matching requirement. This condition could result in the Organization losing funding due to noncompliance. However, as further discussed below the Organization is already in discussions with HUD regarding its potential discontinuance with these specific programs. Grant 0045 was transferred to another agency subsequent to year end.

Categories

Matching / Level of Effort / Earmarking HUD Housing Programs

Other Findings in this Audit

  • 509665 2024-003
    Significant Deficiency
  • 509666 2024-001
    - Repeat
  • 509667 2024-002
    Significant Deficiency
  • 509668 2024-003
    Significant Deficiency
  • 509669 2024-001
    - Repeat
  • 509670 2024-003
    Significant Deficiency
  • 1086107 2024-003
    Significant Deficiency
  • 1086109 2024-002
    Significant Deficiency
  • 1086110 2024-003
    Significant Deficiency
  • 1086111 2024-001
    - Repeat
  • 1086112 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $1.20M
14.239 Home Investment Partnerships Program $104,295
14.169 Housing Counseling Assistance Program $55,000
14.231 Emergency Solutions Grant Program $32,045
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $25,000
21.027 Coronavirus State and Local Fiscal Recovery Funds $25,000
16.736 Transitional Housing Assistance for Victims of Domestic Violence, Dating Violence, Stalking, Or Sexual Assault $22,062
20.509 Formula Grants for Rural Areas and Tribal Transit Program $19,350