Finding Text
Finding 2025-009 Matching: Internal Control U.S. Department of Health and Human Services No. 93.276 Drug Free Community Grant Period Year Ended June 30, 2025 Criteria: The entity should maintain controls to ensure matching contributions are properly calculated, documented, monitored, and reconciled to supporting records. Condition and Context: During the audit, management revised the allocation between grantfunded payroll costs and matching payroll costs. In addition, reconciliations had not been performed before the audit, resulting in differing match calculations during the audit process. Cause: Management did not perform periodic reconciliations of match calculations and lacked formal review procedures over the match reporting process. Effect: The absence of timely reconciliations increases the risk that matching requirements could be calculated incorrectly or unsupported amounts could be reported. Recommendation: We recommend management establish formal procedures for tracking and reconciling matching contributions, including documented supervisory review of match calculations and supporting documentation, to ensure compliance with federal matching requirements. Management Response: Policies are being implemented to ensure proper tracking and reconciling of matching contributions are being done and reviewed, see corrective action plan.