Finding Text
Finding 2023-002: Matching - Significant Deficiency
U.S. Department of Housing and Urban Development
Passed through the Missouri Department of Mental Health
Continuum of Care Program, Federal Assistance Listing No. 14.267
Federal award year 2023
Criteria: The OMB Compliance Supplement and terms of the grant agreements include matching requirements, where the recipient must match grant funds with no less than 25 percent from other sources.
Condition: The Organization does not retain specific documentation of reviews performed on the matching requirement. Management described reviews that are being performed on the total expenditures incurred in the general ledger cost center, which are then reduced by the Organization’s matching amounts before performing drawdowns, but specific documentation is not maintained to provide evidence of these reviews and approvals.
Cause: A lack of maintaining documentation with evidence of review.
Effect or potential effect: The potential effect is that the Organization is not in compliance with matching requirements.
Questioned costs: None.
Context: Matching requirements were met for each of the three housing programs reviewed, therefore no questioned costs were noted. As noted above, for each housing program selected, no clear documentation was maintained to provide evidence of controls in place over compliance with the matching requirement.
Identification as a repeat finding, if applicable: This is not a repeat finding.
Recommendation: We recommend the Organization implement procedures to ensure documentation over matching procedures and evidence of reviews and controls performed is retained.
Views of responsible officials and auditee: Management agrees with this finding. See corrective action plan.