Finding Text
Finding No.: 2023-002
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
AL Program: 14.267 Continuum of Care Program
Area: Matching, Level of Effort, Earmarking
Questioned Costs: $51,281
Criteria:
In accordance with applicable matching requirements, the recipient or subrecipient must match all grant funds, except for leasing funds, with no less than 25 percent of cash or in-kind contributions from other sources that is verifiable from the non-federal entity’s records and are not included as contributions for any other federal award.
Condition:
For 5 (or 36%) of 14 projects tested, we noted deficient matches, as follows: See Schedule of Findings and Question Costs for chart/table.
Cause:
GHURA did not effectively monitor controls over compliance with applicable matching, level of effort, earmarking requirements.
Effect:
GHURA is in noncompliance with applicable matching, level of effort, earmarking requirements. The total questioned cost is $51,281.
Recommendation:
GHURA should strengthen monitoring controls over compliance with applicable matching, level of effort, earmarking requirements. Responsible personnel should coordinate with subrecipients to ascertain the funding source of the required and actual match. Prior to approving administrative costs, responsible personnel should verify cumulative administrative cost totals and compare such totals to the administrative cost ceilings to ascertain that such ceilings are not exceeded.
Views of Responsible Officials:
The Authority will review its accounting processes to accurately record and provide complete reports as required by the U.S. Housing and Urban Development (HUD), by the recommendations from HUD’s technical assistance, and by the updated Uniform Guidance requirements to report matching requirements. Responsible accounting and planning personnel will be trained on updated Uniform Guidance.