Finding Text
Continuum of Care Program, U.S. Department of Housing and Urban Development Federal Assistance Listing #14.267; Contract No. CA1126L9D042209, CA1126L9D042310, CA0869L9D042311, CA2041D9D042100, CA2041D9D042201, CA1517L9D042207, CA1200L9D042209
Condition: Matching requirements were not met for five of the seven grantor's numbers under the program.
Criteria: In compliance with Title 24 CFR Subpart FProgram Requirements §578.73 Matching requirements. (a) In general. The recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of funds or in-kind
contributions from other sources. For Continuum of Care geographic areas in which there is more than one grant agreement, the 25 percent match must be provided on a grant-bygrant basis. Recipients that are UFAs or are the sole recipient for their Continuum, may
provide match on a Continuum-wide basis. Cash match must be used for the costs of activities that are eligible under subpart D of this part, except that HPCs may use such match for the costs of activities that are eligible under §578.71.
Cause: The error stems from the lack of understanding of matching requirements and methods including allowable usage of other grant funds and application of funding towards specific program expenditures.
Effect: The Organization failed to produce funds in accordance with the program requirements. Failure to match funding could result in loss of future funding.
Recommendation: Management should obtain greater understanding of matching rules and requirements to adequately track and expend matching funds. Management should implement controls and procedures for maintaining supporting documentation for all matched expenditures and sources of match funding.