Finding 1215718 (2025-001)

FINDING No. 2025-001 Statement of Condition: The auditor identified one draw that did not include the proper match calculation in accordance with the grant agreement requirements in the amount of $29,474. The error was originally detected by management but was not corrected in a timely manner. Criteria: The Association is required to match a certain percentage of grant claims with non-federal funds or in-kind expenses. Effect: The Association is not in compliance with the grant agreement’s matching requirements. Cause: The Association’s grant agreement required personnel expenditures claimed and reimbursed with federal grant proceeds to be matched with a certain amount of non-federal funding sources. The Association’s claim included an error that caused the entire amount of the personnel expenditures for the claim period to be reimbursed with federal grant funds. The Association identified but failed to reduce a future claim in a timely manner. Recommendation: The Association should reduce a future claim for the expenditures that were not matched and should include a reconciliation of all claims and related matches for a specific grant to ensure no future noncompliance with match requirements. Management Response: Subsequent to year end, the Association reduced the December 2025 claim to account for the over payment.