FAC Explorer

Audit 23636

FY End
2022-06-30
Total Expended
$20.35M
Findings
4
Programs
54
Organization: Carroll County Commissioners (MD)
Year: 2022 Accepted: 2022-11-28
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25948 2022-001 - - P
25949 2022-002 - - P
602390 2022-001 - - P
602391 2022-002 - - P

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $6.08M Yes 2
21.023 Emergency Rental Assistance Program $2.13M Yes 0
20.507 Federal Transit_formula Grants $1.74M Yes 0
14.228 Community Development Block Grants/state's Program $785,464 Yes 0
14.879 Mainstream Vouchers $753,675 Yes 0
20.205 Highway Planning and Construction $564,854 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $548,367 Yes 0
14.231 Emergency Solutions Grant Program $480,712 - 0
17.278 Wioa Dislocated Worker Formula Grants $442,395 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $441,114 - 0
93.558 Temporary Assistance for Needy Families $394,306 - 0
97.067 Homeland Security Grant Program $376,264 - 0
20.106 Airport Improvement Program $367,798 - 0
17.259 Wioa Youth Activities $304,508 - 0
17.258 Wioa Adult Program $234,498 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $222,056 - 0
21.019 Coronavirus Relief Fund $218,987 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $208,054 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $184,785 - 0
93.563 Child Support Enforcement $140,314 - 0
93.556 Promoting Safe and Stable Families $125,824 - 0
97.042 Emergency Management Performance Grants $125,725 - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $118,174 Yes 0
93.778 Medical Assistance Program $102,997 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $84,976 - 0
95.001 High Intensity Drug Trafficking Areas Program $81,955 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $80,559 - 0
10.916 Watershed Rehabilitation Program $63,174 - 0
14.896 Family Self-Sufficiency Program $61,922 - 0
16.588 Violence Against Women Formula Grants $55,482 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $37,273 - 0
16.922 Equitable Sharing Program $30,495 - 0
93.053 Nutrition Services Incentive Program $26,189 - 0
14.241 Housing Opportunities for Persons with Aids $25,319 - 0
93.324 State Health Insurance Assistance Program $23,491 - 0
66.466 Chesapeake Bay Program $21,793 - 0
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $21,700 - 0
14.267 Continuum of Care Program $16,307 - 0
20.616 National Priority Safety Programs $15,402 - 0
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $14,982 - 0
64.044 Vha Home Care $12,683 - 0
20.218 National Motor Carrier Safety $12,038 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $10,354 - 0
16.111 Joint Law Enforcement Operations $8,311 - 0
16.992 Federal Asset Forfeiture Grant $8,035 - 0
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $7,557 - 0
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $6,011 - 0
93.499 Low Income Household Water Assistance Program $5,809 - 0
93.071 Medicare Enrollment Assistance Program $4,732 - 0
20.600 State and Community Highway Safety $3,269 - 0
21.016 Equitable Sharing $3,142 - 0
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $2,728 - 0
16.758 Improving the Investigation and Prosecution of Child Abuse and the Regional and Local Children's Advocacy Centers $187 - 0
16.575 Crime Victim Assistance $-1 - 0

Contacts

Name Title Type
RA72VPNF3ND3 Jennifer Hobbs Auditee
4103862004 Dan Kenney Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Carroll County, Maryland under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Carroll County, Maryland, it is not intended to and does not present the financial position, changes in net position or cash flows of Carroll County, Maryland. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Grant revenues are recorded for financial reporting purposes when expenditures are made in accordance with requirements of respective grants. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Both Rate Explanation: Carroll County, Maryland has elected to use the 10 percent de minimis indirect cost rate on certain grants and not to use the 10 percent de minimis indirect cost rate on other grants as allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Condition: The accounting records required numerous adjustments to be proposed and recorded in order for the implementation of GASB 87 to be fairly presented in accordance with generally accepted accounting principles in the United States of America. Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are detected and corrected by management in a timely manner. Effect or Potential Effect: Management may produce financial statements that are materially misstated. Cause: Management did not have controls over financial reporting specifically related to the implementation of GASB 87. Recommendation: Management should undertake a review of internal controls over financial reporting to determine who is preparing adjustments related to new GASB implementations and who is reviewing the adjustments and ensure that financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in the future. Views of Responsible Official(s) and Planned Corrective Actions: The Accounting office plans on utilizing DebtBook which was purchased earlier in the fiscal year to assist with this corrective action plan for GASB 87 implementation and compliance. This will include the formation of a Lease committee which would meet quarterly (at a minimum) beginning with FY23 ? quarterthree (3). The Lease committee will have representatives from various departments tasked with ongoing lease collection and compliance for all leases where the County is the Lessor or the Lessee. Our goal will be to continue to understand our obligations, obtain lease data, better organize our leases, and test for compliance so that Accounting can improve the creation of proper Schedules, Journal Entries, and Year-End Audit Notes for our Annual Comprehensive Financial Report (ACFR). In addition, Accounting will review the internal controls for booking these entries into our Financial Management System (FMS) so that we have separation of duties between those preparing the adjustments and those reviewing the adjustments to ensure the financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in FY23 and future fiscal years.
Finding 2022-002
Condition: During the course of our audit we noted a material misstatement in the County?s recognition of grant revenue related to fee-for-service grants in the grant fund, a major governmental fund. Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are detected and corrected by management in a timely manner. Effect or Potential Effect: Management may produce financial statements that are materially misstated. Cause: Management did not have controls over financial reporting specifically related to the recognition of revenue for fee-for-service grants. Recommendation: We recommend that the County update its formal documentation surrounding its procedures pertaining to grants. The policies and procedures should include a formal review process by a designated finance department employee with the proper subject matter expertise to help overcome the fact that grant administration is decentralized at the County. The process should include documentation of the procedures that are put in place so that the review can be reperformed. Views of Responsible Official(s) and Planned Corrective Actions: The Accounting office will take the lead in documenting the requirements of recognizing grant revenue related to fee-for-service grants to ensure the revenue is properly recorded. Revenue recognition is a generally accepted account principle (GAAP) that requires revenue to be recognized in the period when realized and earned. Accounting will work with the Grant Management Office, Budget Office, as well as various Grant Administrators to review and update our formal documentation: Carroll County Guide to Grants. Once updated in FY23 ? quarter three (3), we will train staff with fiscal responsibilities of managing and recording revenue and expenses to these grants. This topic will also be added to our FY23 current quarterly / monthly grant meeting with various departments. In addition, Accounting will review the internal controls for booking these entries into our Financial Management System (FMS) so that we have designed employees with the expertise to complete a formal review of revenue earned and unearned to ensure the financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in FY23 and future fiscal years.
Finding 2022-001
Condition: The accounting records required numerous adjustments to be proposed and recorded in order for the implementation of GASB 87 to be fairly presented in accordance with generally accepted accounting principles in the United States of America. Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are detected and corrected by management in a timely manner. Effect or Potential Effect: Management may produce financial statements that are materially misstated. Cause: Management did not have controls over financial reporting specifically related to the implementation of GASB 87. Recommendation: Management should undertake a review of internal controls over financial reporting to determine who is preparing adjustments related to new GASB implementations and who is reviewing the adjustments and ensure that financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in the future. Views of Responsible Official(s) and Planned Corrective Actions: The Accounting office plans on utilizing DebtBook which was purchased earlier in the fiscal year to assist with this corrective action plan for GASB 87 implementation and compliance. This will include the formation of a Lease committee which would meet quarterly (at a minimum) beginning with FY23 ? quarterthree (3). The Lease committee will have representatives from various departments tasked with ongoing lease collection and compliance for all leases where the County is the Lessor or the Lessee. Our goal will be to continue to understand our obligations, obtain lease data, better organize our leases, and test for compliance so that Accounting can improve the creation of proper Schedules, Journal Entries, and Year-End Audit Notes for our Annual Comprehensive Financial Report (ACFR). In addition, Accounting will review the internal controls for booking these entries into our Financial Management System (FMS) so that we have separation of duties between those preparing the adjustments and those reviewing the adjustments to ensure the financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in FY23 and future fiscal years.
Finding 2022-002
Condition: During the course of our audit we noted a material misstatement in the County?s recognition of grant revenue related to fee-for-service grants in the grant fund, a major governmental fund. Criteria: Internal controls over financial reporting should exist to ensure that material misstatements are detected and corrected by management in a timely manner. Effect or Potential Effect: Management may produce financial statements that are materially misstated. Cause: Management did not have controls over financial reporting specifically related to the recognition of revenue for fee-for-service grants. Recommendation: We recommend that the County update its formal documentation surrounding its procedures pertaining to grants. The policies and procedures should include a formal review process by a designated finance department employee with the proper subject matter expertise to help overcome the fact that grant administration is decentralized at the County. The process should include documentation of the procedures that are put in place so that the review can be reperformed. Views of Responsible Official(s) and Planned Corrective Actions: The Accounting office will take the lead in documenting the requirements of recognizing grant revenue related to fee-for-service grants to ensure the revenue is properly recorded. Revenue recognition is a generally accepted account principle (GAAP) that requires revenue to be recognized in the period when realized and earned. Accounting will work with the Grant Management Office, Budget Office, as well as various Grant Administrators to review and update our formal documentation: Carroll County Guide to Grants. Once updated in FY23 ? quarter three (3), we will train staff with fiscal responsibilities of managing and recording revenue and expenses to these grants. This topic will also be added to our FY23 current quarterly / monthly grant meeting with various departments. In addition, Accounting will review the internal controls for booking these entries into our Financial Management System (FMS) so that we have designed employees with the expertise to complete a formal review of revenue earned and unearned to ensure the financial data is properly recorded in the books and records of the County to prevent misstatements from occurring in FY23 and future fiscal years.