Finding Text
2024-008 Information on the Federal Program: Assistance Listing Number 93.526; Grants for Capital Development in Health Centers; Department of Health and Human Services; Federal Award No. C8ECS44299 Criteria Or Specific Requirement: Matching, Level of Effort, Earmarking; As stated in 45 CFR 75.306, matching or cost-sharing includes the requirement to provide contributions of a specified amount or percentage to match federal awards. Matching may be in the form of allowable costs incurred or in-kind contributions. The specific requirements for matching are unique to each federal program and are listed in the notice of award. Condition: The Organization requested and received cash reimbursement for all construction costs incurred before the end of the grant period, but did not meet the matching requirement that stated for all incurred construction costs 75% would be covered by the Organization up to the full grant award of $644,584. Cause: The Organization incurred costs toward the project, but the project date was coming to an end, so management drew the funds before finishing the project. The Organization did not provide the match to the federal awards drawn. Effect or Potential Effect: The result is questioned costs and noncompliance with the grant program. Questioned Costs: $289,520 Context: There was a total of $644,584 in grant funding awarded for construction costs under an approved construction plan. The funding was towards a total project cost of $2,547,800, which the Organization was required to cover $1,903,216 to receive the remaining $644,584. The draw request would need to be in a proportional percentage share so management could not draw down the funds in full until the their share of the costs were incurred as well. Identification as a Repeat Finding, if Applicable: Not a repeat finding Recommendation: Management should make sure to match their share of the funding before draws are made on the federal grant funds. Views of Responsible Officials and Planned Corrective Actions: See separate auditee document for planned corrective action.