Finding Text
The organization did not maintain adequate controls over federal grant compliance monitoring, grant financial management, and SEFA reporting. Specifically: • Management did not maintain a formal mechanism to track and document required versus actual matching contributions for the HUD CoC program, and no grant-level calculation was available to demonstrate compliance with the required 25% match requirement. • Written policies and procedures do not address monitoring of the HUD CoC administrative cost limitation. • The accounting system permitted expenditures to be posted outside the applicable grant performance periods, and no formal grant cutoff policy or review control had been established. • Management did not perform documented reviews of transactions recorded near grant period start and end dates to ensure expenditures were recorded in the proper reporting period. • The initial SEFA provided for audit was inaccurate and unsupported by adequate underlying schedules or reconciliations. • Management had not implemented a formal documented review process to evaluate whether grants and expenditures were appropriately included on the SEFA, including evaluation of a significant State-funded capital grant received during the year.