Finding Text
Finding 2024-001: Noncompliance with Matching Requirement
Recommendation: It is our understanding that the organization has already been in discussions with HUD regarding its inability to secure sufficient matching funds and is seeking to discontinue its administration of this program. As of July 2024, the NC0045 has been transferred to another organization.
View of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. The Organization will continue working with HUD to transfer these award programs to another entity that has more capacity of complying with all requirements. As of July 2024, grant NC0045 was transferred to Brick Capital. The Organization is continuing to work with HUD to transfer the NC0221 grant.
Name of the Contact Person Responsible for the Corrective Action: Tameka Gunn, President and Chief Executive Officer
Planned Completion Date for the Corrective Action Plan: March 2025
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program: Continuum of Care Program (Northern PSH Combo and Piedmont)
Assistance Listing Number: 14.267
Award Period: Northern PSH Combo (Grant no. NC 0045) April 1, 2024 to March 31, 2024
Piedmont (Grant no. NC 0221) June 1, 2023 to May 31, 2024
Type of Finding: Noncompliance
Condition and Criteria: Matching requirement is 25% of all grant funds except for leasing funds. However, for Grant no. NC 0045 we noted that the Organization provided matching funds at approximately 8% and for Grant no. NC 0221 we noted that the Organization provided matching funds at approximately 4%. Total expenditures of federal awards was approximately $1.1 million for NC 0221 and $1.2M for NC 0045 these grants.
Cause: The Organization and HUD were both aware of the Organization’s past difficulties in securing sufficient matching funds for both of these grant programs. Accordingly, in a prior year HUD waived the matching requirement in order to provide the Organization with more time to attempt to secure sufficient matching funds. However, the Organization was not successful in that effort and HUD declined to provide a waiver that would extend past June 30, 2022.
Effect: The Organization has not provided sufficient matching funds and as a result is not in compliance with the 25% matching requirement. This condition could result in the Organization losing funding due to noncompliance. However, as further discussed below the Organization is already in discussions with HUD regarding its potential discontinuance with these specific programs. Grant 0045 was transferred to another agency subsequent to year end.