Finding Text
SD 2022-005 Support for Matching Federal Award: 14.231 Emergency Solutions Grant Program 2022 Funding Department of Housing and Urban Development Passed through the Florida Department of Children and Families Contract No. GPZ48 Criteria: 24 CFR 576.201 specifies the recipient must make matching contributions to supplement the recipient's ESG program in an amount that equals the recipient's fiscal year grant for ESG. 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. The sources of matching funds, required by awards, should be documented and retained. Condition: Subrecipient requests for reimbursement did not include detail support for matching funds. Cause: At the outset of the award, subrecipients specify the types of match (cash, in-kind, service, use of facilities, etc.) they will provide for the award and they provide the amount of the match for each month on the monthly invoice/request for reimbursement. However, no support is provided for the type, quantity, or value of match during the month. Effect: The required matching funds may not be obtained for the award. Questioned Costs: None Perspective: Support for matching was not obtained for any subrecipients. Recommendation: Sources of and detail support for matching funds should be obtained prior to payment of subrecipient requests for reimbursement. Management Response: Since the prior audit, we implemented several changes which affect the repeated findings. The FY 20-21 Audit report was issued on June 30, 2022. The change in the fiscal year resulted in a 12-hour turnaround making it difficult to clear the findings and implement the recommended changes from last year's audit. We require match documentation to be provided upfront during the competitive RFP. We detailed in each sub-recipient contract the Match requirements that ensure compliance with 24 CFR 576.201 and 2 CFR 200.303. We have added a match reporting requirement to the invoicing process that requires proof of Match monthly. These sub-recipient contracts went into effect July 1, 2022 making the implementation of the recommended change effective outside of the fiscal year in review. This finding will be cleared in our next audit.