Finding 1182347 (2025-003)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393787
Auditor: CLARK NUBER P S

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance, specifically related to matching requirements for the Continuum of Care Program.
  • Impacted Requirements: The Organization failed to ensure that matching costs only included amounts from allowable sources as per 2 CFR 200.306.
  • Recommended Follow-Up: Strengthen controls by modifying the Excel workbook used for matching costs and implement a formal review process to ensure only eligible expenses are included.

Finding Text

Finding 2025-003 Significant deficiency in internal controls over compliance and instance of noncompliance related to matching requirements. Identification of the Federal Program Federal Agency: The United States Department of Housing and Urban Development Program Title: Continuum of Care Program Assistance Listing Number: 14.267 Award Numbers: All Award Periods: All Criteria Internal controls should ensure that the Organization’s population of allowable matching costs only include amounts from allowable sources in accordance with 2 CFR 200.306. Condition During testing of the matching compliance requirement we received an unsubmitted excel workbook identifying the matching costs eligible to be claimed during the period under audit. During testing of the aggregated charges it was identified five out of our 25 matching charges identified were improperly included as eligible in the excel workbook aggregating the matching cost pool as they were from an unallowable source. The error was due to a clerical allocation error within the spreadsheet identifying the matching charges. After correcting for the clerical error the unallowable costs were removed from the cost pool and the Organization determined it still had sufficient allowable and allocable charges to meet the awards matching requirements. Cause The primary cause of this issue is associated with inadequate internal controls relating to the spreadsheet design and review. Effect The effect of ineligible costs were included in the preliminary matching cost pool, there is a risk that reported match amounts could have been inaccurate and that reported cost sharing or matching would not meet the requirements of 2 CFR 200.306. Questioned Costs Not applicable. Recommendation We recommend that the Organization strengthen controls over the preparation and review of the matching cost pool by modifying the Excel workbook or other tools used to identify matching costs to ensure that only specifically designated matching expenses are included, implementing a formal review of the matching cost pool.

Corrective Action Plan

Finding 2025-003 Significant deficiency in internal controls over compliance and instance of noncompliance related to matching requirements. Contact Person(s): Nicholas Lee, Chief Financial Officer Corrective action planned: Management identified that the required matching report was not submitted to the funder in accordance with the grant deliverable requirements. The organization has since reviewed the grant agreement to ensure full understanding of all reporting and matching obligations. Corrective actions have been implemented. A centralized grant compliance checklist has been developed to outline all required deliverables, including matching report deadlines. Matching requirements have been incorporated into the organization’s grant reporting calendar with reminder controls in place. Responsibility for tracking and submitting match documentation has been formally assigned to designated Finance personnel, with supervisory review prior to submission. These measures strengthen internal controls over grant compliance and are designed to ensure timely submission of all required matching documentation going forward. Anticipated completion date: Implemented as of December 31, 2025

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1182333 2025-001
    Material Weakness Repeat
  • 1182334 2025-001
    Material Weakness Repeat
  • 1182335 2025-001
    Material Weakness Repeat
  • 1182336 2025-001
    Material Weakness Repeat
  • 1182337 2025-001
    Material Weakness Repeat
  • 1182338 2025-001
    Material Weakness Repeat
  • 1182339 2025-001
    Material Weakness Repeat
  • 1182340 2025-002
    Material Weakness Repeat
  • 1182341 2025-003
    Material Weakness Repeat
  • 1182342 2025-001
    Material Weakness Repeat
  • 1182343 2025-002
    Material Weakness Repeat
  • 1182344 2025-003
    Material Weakness Repeat
  • 1182345 2025-001
    Material Weakness Repeat
  • 1182346 2025-002
    Material Weakness Repeat
  • 1182348 2025-001
    Material Weakness Repeat
  • 1182349 2025-001
    Material Weakness Repeat
  • 1182350 2025-001
    Material Weakness Repeat
  • 1182351 2025-001
    Material Weakness Repeat
  • 1182352 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.44M
94.016 AMERICORPS SENIORS SENIOR COMPANION PROGRAM (SCP) 94.016 $216,464
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $204,684
14.267 CONTINUUM OF CARE PROGRAM $185,636
93.676 UNACCOMPANIED CHILDREN PROGRAM $178,914
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $177,493
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $174,184
94.002 AMERICORPS SENIORS RETIRED AND SENIOR VOLUNTEER PROGRAM (RSVP) 94.002 $134,723
97.010 CITIZENSHIP EDUCATION AND TRAINING $105,366
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $101,381
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $100,672
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $98,239
14.276 YOUTH HOMELESSNESS DEMONSTRATION PROGRAM $83,718
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $74,737
16.575 CRIME VICTIM ASSISTANCE $62,105
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $61,457
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $47,695
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $38,252
16.017 SEXUAL ASSAULT SERVICES FORMULA PROGRAM $32,015
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $30,000
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $19,155
93.667 SOCIAL SERVICES BLOCK GRANT $13,246
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $9,943
16.736 TRANSITIONAL HOUSING ASSISTANCE FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, STALKING, OR SEXUAL ASSAULT $1,544