Finding 1161624 (2023-006)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
$1
Year
2023
Accepted
2025-10-29

AI Summary

  • Core Issue: AIRS did not meet the required 50% match for federal funding, reporting only $217,048 against a needed $447,907.
  • Impacted Requirements: The matching requirement for the Refugee and Entrant Assistance program was not satisfied, leading to questioned costs of $895,814.
  • Recommended Follow-Up: Management should discuss next steps with ECDC and the US Department of Health and Human Services to address compliance issues.

Finding Text

Federal Financial Assistance Listing Number: 93.567. Questioned costs: $895,814. Criteria: The federal program requirements for the Refugee and Entrant Assistance Voluntary Agency Programs (FFA Listing No. 93.567) and the subaward agreement with the Ethiopian Community Development Council, Inc. (ECDC) requires a match of $1 of value through non-federal cash, in-kind donations and volunteer time for each $2 of grant award received (50% match). Condition: AIRS does not appear received sufficient non-federal cash, in-kind donations and volunteer time to satisfy the matching requirement for the year ended September 30, 2023. AIRS submitted repotting to ECDC documenting a total match amount received during the year ended September 30, 2023 of $217,048. However, the total award received and expended during 2023 was $895,814. Thus, the required match amount for year ended September 30, 2023 is $447,907. In addition, certain amounts included in the $217,048 match amount reported to ECDC, of approximately $135,000, did not appear to be properly supported or valued. Finally, AIRS also failed to properly record certain of the in-kind matching amounts to its financial statements during the year ended September 30, 2024 (See Finding 2023-002). Cause: AIRS did not receive or record sufficient matching amounts in order to satisfy the matching requirements of the federal award program. Effect: AIRS is not in compliance with the matching compliance requirement for the federal award. Questioned Costs: $895,814. Repeat Finding from Prior Year: No. Recommendation: I strongly recommend that management engage in discussions with both program oversight personnel at ECDC and at the US Department of Health and Human Services to determine any further actions required related to this federal program award. Views of Responsible Officials: Management concurs with this audit finding.

Corrective Action Plan

AIRS management will improve procedures and add additional controls to record sufficient matching amounts in order to satisfy the matching requirements of the federal award program, including proper documentation and processing of in-kind items that are included in the matching fund internal reports so they are supported and valued as required under Uniform Guidance.

Categories

Questioned Costs Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1161622 2023-004
    Material Weakness Repeat
  • 1161623 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $895,814
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $705,875
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $593,251
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $341,963
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $27,494