2022-002 - Emergency Solutions Grant - Assistance Listing No. 14.231
Significant Deficiency in Internal Control Over Compliance and Noncompliance – A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable.
Condition and Context: During 2022, FSA maintained payroll records which included detailed timecards or time studies for employees who spent hours worked on the Emergency Solutions Grant (ESG). We selected 8 employees for testing during the audit and noted that 2 employees did not maintain detailed timecards or a time study and 3 employees worked less hours on ESG than what were claimed for reimbursement under the grant. Our sample was not considered to be a statistically valid sample.
Cause and Effect: We noted a lack of internal controls surrounding the tracking of hours worked for ESG during 2022 which resulted in noncompliance. We tested 8 employees for a total of $14,431 of claimed payroll cost and calculated known questioned costs of $2,196 which resulted in likely questioned costs of $8,703 using an error rate of 15% over total payroll claimed for 2022 of $57,188. Total likely questioned costs were 2% of overall ESG expenditures for 2022.
Recommendation: We recommend FSA implement procedures for all employees who have payroll claimed under federal programs to maintain detailed timecards or time studies to support hours worked under each federal program.
Views of Responsible Officials and Planned Corrective Actions: Family Service Association of Howard County, Inc.’s (FSA) accounting department experienced significant turnover during 2022 which included the Director of Accounting leaving mid-year. Since the new Director of Accounting took on her role we have been actively working on ways to enhance our processes. Family Service Association of Howard County, Inc. (FSA) will implement procedures and maintain timecards and time studies for employees who have payroll claimed under the federal programs to be in compliance of federal grants beginning April 2024.
2022-002 - Emergency Solutions Grant - Assistance Listing No. 14.231
Significant Deficiency in Internal Control Over Compliance and Noncompliance – A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable.
Condition and Context: During 2022, FSA maintained payroll records which included detailed timecards or time studies for employees who spent hours worked on the Emergency Solutions Grant (ESG). We selected 8 employees for testing during the audit and noted that 2 employees did not maintain detailed timecards or a time study and 3 employees worked less hours on ESG than what were claimed for reimbursement under the grant. Our sample was not considered to be a statistically valid sample.
Cause and Effect: We noted a lack of internal controls surrounding the tracking of hours worked for ESG during 2022 which resulted in noncompliance. We tested 8 employees for a total of $14,431 of claimed payroll cost and calculated known questioned costs of $2,196 which resulted in likely questioned costs of $8,703 using an error rate of 15% over total payroll claimed for 2022 of $57,188. Total likely questioned costs were 2% of overall ESG expenditures for 2022.
Recommendation: We recommend FSA implement procedures for all employees who have payroll claimed under federal programs to maintain detailed timecards or time studies to support hours worked under each federal program.
Views of Responsible Officials and Planned Corrective Actions: Family Service Association of Howard County, Inc.’s (FSA) accounting department experienced significant turnover during 2022 which included the Director of Accounting leaving mid-year. Since the new Director of Accounting took on her role we have been actively working on ways to enhance our processes. Family Service Association of Howard County, Inc. (FSA) will implement procedures and maintain timecards and time studies for employees who have payroll claimed under the federal programs to be in compliance of federal grants beginning April 2024.
2022-003 - Emergency Solutions Grant - Assistance Listing No. 14.231
Significant Deficiency in Internal Control Over Compliance and Noncompliance – F. Equipment and Real Property Management
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Agency must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”.
2 CFR 200.313 includes requirements related to maintaining records of equipment purchased at a value with equals or exceeds the lesser of the Organization’s capitalization threshold or $5,000. “Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.”
Condition and Context: During 2022, FSA purchased equipment of $1,236. FSA’s capitalization threshold of $1,000. FSA did not capitalize the equipment. Due to the fact that FSA did not capitalize the equipment purchased, the equipment was not appropriately tracked in accordance with Uniform Guidance.
Cause and Effect: We noted a lack of internal controls surrounding the equipment and real property management process resulted in equipment not appropriately being capitalized and tracked in accordance with federal guidelines. This deficiency could also lead to noncompliance related to the disposal of equipment and real property purchased with federal funds.
Recommendation: We recommend FSA implement procedures to ensure equipment and real property purchased with federal funding is appropriately capitalized and tracked.
Views of Responsible Officials and Planned Corrective Actions: Family Service Association of Howard County, Inc. (FSA) acknowledges and agrees with the audit findings. We are actively working on ways to enhance our systems and improve staff training and staff transition to address the identified areas of improvement. Our goal is to ensure that we meet the highest standards. Family Service Association of Howard County Inc. (FSA) will implement procedures to ensure equipment and real property purchased with federal funding is appropriately capitalized and tracked beginning April 2024.
2022-002 - Emergency Solutions Grant - Assistance Listing No. 14.231
Significant Deficiency in Internal Control Over Compliance and Noncompliance – A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable.
Condition and Context: During 2022, FSA maintained payroll records which included detailed timecards or time studies for employees who spent hours worked on the Emergency Solutions Grant (ESG). We selected 8 employees for testing during the audit and noted that 2 employees did not maintain detailed timecards or a time study and 3 employees worked less hours on ESG than what were claimed for reimbursement under the grant. Our sample was not considered to be a statistically valid sample.
Cause and Effect: We noted a lack of internal controls surrounding the tracking of hours worked for ESG during 2022 which resulted in noncompliance. We tested 8 employees for a total of $14,431 of claimed payroll cost and calculated known questioned costs of $2,196 which resulted in likely questioned costs of $8,703 using an error rate of 15% over total payroll claimed for 2022 of $57,188. Total likely questioned costs were 2% of overall ESG expenditures for 2022.
Recommendation: We recommend FSA implement procedures for all employees who have payroll claimed under federal programs to maintain detailed timecards or time studies to support hours worked under each federal program.
Views of Responsible Officials and Planned Corrective Actions: Family Service Association of Howard County, Inc.’s (FSA) accounting department experienced significant turnover during 2022 which included the Director of Accounting leaving mid-year. Since the new Director of Accounting took on her role we have been actively working on ways to enhance our processes. Family Service Association of Howard County, Inc. (FSA) will implement procedures and maintain timecards and time studies for employees who have payroll claimed under the federal programs to be in compliance of federal grants beginning April 2024.
2022-002 - Emergency Solutions Grant - Assistance Listing No. 14.231
Significant Deficiency in Internal Control Over Compliance and Noncompliance – A. Activities Allowed or Unallowed and B. Allowable Costs/Cost Principles
Criteria: 2 CFR 200.403(g) indicates costs must be adequately documented in order to be considered allowable.
Condition and Context: During 2022, FSA maintained payroll records which included detailed timecards or time studies for employees who spent hours worked on the Emergency Solutions Grant (ESG). We selected 8 employees for testing during the audit and noted that 2 employees did not maintain detailed timecards or a time study and 3 employees worked less hours on ESG than what were claimed for reimbursement under the grant. Our sample was not considered to be a statistically valid sample.
Cause and Effect: We noted a lack of internal controls surrounding the tracking of hours worked for ESG during 2022 which resulted in noncompliance. We tested 8 employees for a total of $14,431 of claimed payroll cost and calculated known questioned costs of $2,196 which resulted in likely questioned costs of $8,703 using an error rate of 15% over total payroll claimed for 2022 of $57,188. Total likely questioned costs were 2% of overall ESG expenditures for 2022.
Recommendation: We recommend FSA implement procedures for all employees who have payroll claimed under federal programs to maintain detailed timecards or time studies to support hours worked under each federal program.
Views of Responsible Officials and Planned Corrective Actions: Family Service Association of Howard County, Inc.’s (FSA) accounting department experienced significant turnover during 2022 which included the Director of Accounting leaving mid-year. Since the new Director of Accounting took on her role we have been actively working on ways to enhance our processes. Family Service Association of Howard County, Inc. (FSA) will implement procedures and maintain timecards and time studies for employees who have payroll claimed under the federal programs to be in compliance of federal grants beginning April 2024.
2022-003 - Emergency Solutions Grant - Assistance Listing No. 14.231
Significant Deficiency in Internal Control Over Compliance and Noncompliance – F. Equipment and Real Property Management
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Agency must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”.
2 CFR 200.313 includes requirements related to maintaining records of equipment purchased at a value with equals or exceeds the lesser of the Organization’s capitalization threshold or $5,000. “Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.”
Condition and Context: During 2022, FSA purchased equipment of $1,236. FSA’s capitalization threshold of $1,000. FSA did not capitalize the equipment. Due to the fact that FSA did not capitalize the equipment purchased, the equipment was not appropriately tracked in accordance with Uniform Guidance.
Cause and Effect: We noted a lack of internal controls surrounding the equipment and real property management process resulted in equipment not appropriately being capitalized and tracked in accordance with federal guidelines. This deficiency could also lead to noncompliance related to the disposal of equipment and real property purchased with federal funds.
Recommendation: We recommend FSA implement procedures to ensure equipment and real property purchased with federal funding is appropriately capitalized and tracked.
Views of Responsible Officials and Planned Corrective Actions: Family Service Association of Howard County, Inc. (FSA) acknowledges and agrees with the audit findings. We are actively working on ways to enhance our systems and improve staff training and staff transition to address the identified areas of improvement. Our goal is to ensure that we meet the highest standards. Family Service Association of Howard County Inc. (FSA) will implement procedures to ensure equipment and real property purchased with federal funding is appropriately capitalized and tracked beginning April 2024.