Finding 9669 (2023-002)

Assistance Listing Number, Federal Agency, and Program Name 14.267 U.S. Department of Housing and Urban Development Continuum of Care Youth Transitions Program Federal Award Identification Number and Year CO0059L8T032013 April 1, 2021 to March 31, 2022 Pass through Entity N/A Direct Finding Type Significant deficiency Repeat Finding No Criteria Per 24 CFR 578.73(a), the recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of funds or in kind contributions from other sources. Condition In a monitoring visit performed by U.S. Department of Housing and Urban Development (HUD), the grantor found that the supporting documentation submitted does not enable a third party reviewer to make a clear determination that match requirements were met. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context The Organization met the required match but did not have documentation to support that match requirements were met. Cause and Effect The Organization did not have adequate policies in place over retaining documentation to support the required match was met. The effect is that the Organization is unable to track and show evidence that it met the 25 percent match obligation. If the 25 percent match obligation is not met, funds will likely need to be returned to the grantor. Recommendation The Organization should implement policies and controls to ensure that documentation is completed and retained to support that the match requirement is met. Views of Responsible Officials and Planned Corrective Actions The Organization established a policy and procedure to calculate the match requirement, compare it with the required total, and proactively identify actions to address any shortages at the end of each month. The Organization also ensured that all matches were supported by documents in a format that third parties could verify.