Finding Text
Emergency Solutions Grant Program, U.S. Department of Housing and Urban Development Federal Assistance Listing #14.231; Contract No. 015-2024, 144-2022, 221-2023, 279-2023, 641-2023, 518-2022, 2022-243, 2023-293, 2023-125, 2023-292, 2023-288, 2022-238
Condition: The Organization failed to fully match funding for ten of the twelve grantor's numbers under the program. Out of a total required match of $606,436, only a portion of matched funds were made in the amount of $370,745, resulting in an unfunded match of $235,691.
Criteria: In compliance with Title 24 CFR Subpart CAwards and Use of Funds §576.201 Matching requirement. (a) The recipient must make matching contributions to supplement the recipient's Emergency Solution Grant (ESG) program in an amount that equals the recipient's fiscal year grant for ESG. This amount may include contributions to any project under the recipient's ESG program, including any subrecipient's ESG project, if the requirements in this section are met.
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 match 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.