Finding Text
Finding #2024-003 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, 93.567, Refugee and Entrant Assistance Voluntary Agency Programs, Passed through U. S. Committee for Refugees and Immigrants: 10/01/23 – 09/30/24, 2402VARVMG-00. Criteria: Matching, Level of Effort and Earmarking 45 CFR 75 306 stipulates that matching funds must meet the following criteria: 1) verifiable from organization’s records, 2) not included as contributions for any other federal award, 3) are necessary and reasonable for accomplishment of project or program objectives, 4) are allowable under Uniform Guidance Subpart E, 5) are not paid by the federal government under another federal award except where federal statute allows, and 6) are included in approved budget when required by HHS award agency. Additionally, donated goods and services should be valued at fair value, must be documented, and to the extent feasible supported by the same methods used internally by the organization. Condition and context: During our testing of 40 transactions reported as matching grant costs, we identified two exceptions totaling $369 with lack of documentation of fair value of in-kind donations. Additionally, the YMCA did not meet its match requirement by approximately $281,000. Repeat of finding #2023-005. Cause: Failure to follow the YMCA’s policies and procedures related to the valuation, and documentation of in-kind items for the match grant, and failure to cumulate sufficient costs to apply towards match requirements. Effect: Potential over/under statement of the fair value of in-kind match and failure to meet match requirement. Recommendation: Provide additional training and emphasize adherence to established policies and procedures to ensure maintenance of documentation for valuation, documentation and monitoring of matching grant funds. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.