Finding Text
2023‐001 — Compliance over Matching – (Significant Deficiency)
Federal Program Information:
Funding Agency: Housing and Urban Development
Title: Continuum of Care
Assistance Listing Number: 14.267
Compliance Requirement: Matching
Award Year: July 1, 2022 to June 30, 2023
Condition: During our audit, we noted that Barrett Foundation only matched 7.34% of the total applicable expenses
for the year which was less than the required 25%.
Criteria: Barrett Foundation must match all applicable grant funds, with no less than 25 percent of cash or in-kind
contributions from other sources (24 CFR section 578.73(a)).
Effect: Barrett Foundation under matched the required amount for the Continuum of Care program.
Questioned Costs: None
Cause: Barrett Foundation did not establish a sufficient system of internal control to ensure that they were in
compliance with the required match for the fiscal year.
Auditors’ Recommendation: We recommend that Barrett Foundation establish a system of internal controls to ensure
that they provide at least 25% of both cash and in-kind contributions for all applicable programs under the
Continuum of Care program.
Management’s Response: In FY23, Barrett Foundation transitioned from in-house financial services to an outside
accounting firm. The transition allowed Barrett Foundation to create an internal structure to meet the needs of new
programs. We recognize that while progress has been made, some issues continue to need attention. We are working
diligently with our community partners to meet their matching requirements and expect to not experience this issue
in FY24. Additionally, we are currently updating Barrett Foundation's Finance Policies in which we are establishing
policies to address contracts that require match.