Finding Text
Finding No.: 2025-013 Identification of Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.267 Continuum of Care Program Federal Award No.: GU0011L9C002112, GU0011L9C002213, GU0031L9C002203, GU0037L9C002302 Area: Matching, Level of Effort, and Earmarking Criteria or specific requirement (including statutory, regulatory or other citation): The recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of cash or in-kind contributions from other sources. For CoC geographic areas in which there is more than one grant agreement, the 25 percent match must be provided on a grant-by-grant basis. Condition: Of five grant awards tested, aggregating $569,741 of $ 1,053,179 of expenditures subjected to matching and level of effort tests, three subawards (60%) did not evidence matching of awards from allowable sources as follows: Item No. Grant Award Award Amount FY25 Grant Expenditures Grant Match Requirement Match Amounts Amounts Excess (Short) Questioned Costs 1 GU0011L9C002112 $576,510 $1,762 $144,128 $89,109 $(55,019) $1,762 2 GU0011L9C002213 576,510 6,359 144,128 - (144,128) 6,359 3 GU0037L9C002302 211,987 91,364 22,841 - (22,841) 91,364 Total Questioned Costs $99,485 Cause: Management has not fully implemented formalized policies and procedures to ensure centralized tracking, periodic reconciliation, and supervisory review of matching contributions in accordance with established control expectations. Responsibilities for monitoring matching activity are decentralized with each planner. A periodic management review of cumulative matching, supporting documentation, and source allowability is not consistently performed. Effect or potential effect: GHURA is in noncompliance with applicable matching and level of effort requirements. Questioned costs: $99,485 Finding No.: 2025-013, continued Identification as a repeat finding: Not applicable. Recommendation: Management should establish and implement formal policies and procedures to ensure centralized tracking, timely submission, and periodic reconciliation of matching contributions. Views of Responsible Officials: Management concurs with the finding. Refer to Management’s position as outlined in the Corrective Action Plan.