Finding Text
U.S. Department of Housing and Urban Development
Passed through the Missouri Department of Mental Health
Continuum of Care Program, Federal Assistance Listing No. 14.267
Federal award year 2024
Criteria: The OMB Compliance Supplement and terms of the grant agreements include matching requirements, where the recipient must match grant funds with no less than 25% from other sources.
Condition: The Organization did not retain specific documentation of reviews performed on the matching requirement for the period prior to March 2024. Management described reviews that are being performed on the total expenditures incurred in the general ledger cost center, which are then reduced by the Organization’s matching amounts before performing drawdowns, but specific documentation is not maintained to provide evidence of these reviews and approvals for the period prior to March 2024.
Cause: A lack of maintaining documentation with evidence of review for the period prior to March 2024.
Effect or potential effect: The potential effect is that the Organization is not in compliance with matching requirements.
Questioned costs: None.
Context: Starting in March of 2024, management implemented internal controls over the maintenance of documentation to provide evidence of controls in place over compliance with the matching requirement. Prior to March of 2024, no clear documentation was maintained to provide evidence of controls in place over compliance with the matching requirement.
Identification as a repeat finding, if applicable: This is a repeat finding. The prior year audit finding reference number is 2023-002.
Recommendation: We recommend the Organization continue to follow its implemented system of internal controls that began in March of 2024 to ensure documentation over matching procedures and evidence of reviews performed is retained.
Views of responsible officials and auditee: Management agrees with this finding. This finding was identified during the 2023 fiscal year audit. Federal regulations govern repeat finding language, the responsible staff immediately took action to correct once identified during the fiscal year 2023 audit process.