FAC Explorer

Finding 30277 (2022-001)

Significant Deficiency Repeat Finding
Requirement
G
Questioned Costs
-
Year
2022
Accepted
2023-01-24
Audit: 36366
Organization: The Empowerment Program, Inc. (CO)
Auditor: Kundinger Corder & Montoya PC

AI Summary

  • Core Issue: Empowerment used unallowable sources for matching funds in quarterly reports.
  • Impacted Requirements: This practice may lead to non-compliance with matching requirements in grant agreements.
  • Recommended Follow-Up: Management should clarify allowable match sources under Uniform Guidance and use a spreadsheet to track revenue sources for matching.

Finding Text

Condition and Criteria: Empowerment used unallowable sources to meet the matching requirement. Cause: For a sample of two quarterly reports prepared by staff that were selected during the year, each report showed federal funds through a passthrough source were being used to provide the match, which are not an acceptable source of matching funds. Effect: Empowerment may not meet the matching requirement set forth under each of the grant agreements. Recommendation: We recommend management and staff obtain a thorough understanding of what match requirements are allowed under Uniform Guidance to ensure the matching funds being reported are from allowable sources. We also recommend the use of a spreadsheet to document and itemize each revenue source being used as a match.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: The accountant agrees that Empowerment used unacceptable sources of matching funds in the past and that Empowerment did not have a full understanding of both the reporting and the match percentage. Accounting has a full understanding of the appropriate matching sources as well as the match percentage. The accountant will maintain a separate spreadsheet with the grant budgets detail the funding that is used for the match for each period to include, source, quarterly amount and totaled to match each grant year funding, ensuring only eligible funds are reported to meet the matching requirement.

Categories

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

Other Findings in this Audit

  • 606719 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $609,777
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $560,030
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $557,649
14.239 Home Investment Partnerships Program $349,547
14.241 Housing Opportunities for Persons with Aids $173,733
93.914 Hiv Emergency Relief Project Grants $139,693
93.788 Opioid Str $136,814