FAC Explorer

Audit 299786

FY End
2023-06-30
Total Expended
$799,012
Findings
2
Programs
1
Organization: Town of Manchester (MD)
Year: 2023 Accepted: 2024-03-28
Auditor: Cliftonlarsonallen LLP Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387726 2023-003 Significant Deficiency - I
964168 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $799,012 Yes 1

Contacts

Name Title Type
XNFZXQB31887 Kelly, Baldwin Auditee
4102393200 Chris Kessler Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1: BASIS OF PRESENTATION Accounting Policies: The accompanying SEFA has been prepared using the modified accrual basis of accounting as fully described in the Summary of Significant Accounting Policies accompanying the Town’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the expenditures of all federal award programs of the Town of Manchester, Maryland (the Town) for the year ended June 30, 2023. 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 Principals and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements.
Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying SEFA has been prepared using the modified accrual basis of accounting as fully described in the Summary of Significant Accounting Policies accompanying the Town’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance The accompanying SEFA has been prepared using the modified accrual basis of accounting as fully described in the Summary of Significant Accounting Policies accompanying the Town’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 3: INDIRECT COST RATE Accounting Policies: The accompanying SEFA has been prepared using the modified accrual basis of accounting as fully described in the Summary of Significant Accounting Policies accompanying the Town’s basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Town has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance The Town has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.

Finding Details

Finding 2023-003
2023-003 Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271 - 2021 Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: 2 CFR 200.214 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; of (b) Collecting a certification from that person; or (c) Adding a clause of condition to the covered transaction with that person. Controls: Per 2 CFR section 200.303(a), a non-Federal entity must: 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 comply 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). Condition: The Town did not determine the suspension and debarment status of vendors with expenditures exceeding $25,000 on a timely basis, as required by federal regulations. Questioned Cost: None Context: Two of the Two vendors we selected for testing had the suspension and debarment status verified, however it was not performed timely. Cause: The Town’s procedures and internal controls over suspension and debarment are not sufficient to ensure that all vendors’ suspension and debarment status is verified timely. Effect: Failure to verity the suspension and debarment status of vendors may result in the Town issuing payments to vendors what are suspended and debarred and not authorized to provide services under the program. Repeat Finding: No Recommendation: We recommend management ensure policies and procedures include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to issuance of the contract. View of responsible officials and planned corrected actions: Management concurs with this finding. Management has implemented a policy going forward to ensure all vendors entered into a contract will sign a suspension and debarment agreement.
Finding 2023-003
2023-003 Federal Agency: Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: 1505-0271 - 2021 Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: 2 CFR 200.214 Suspension and Debarment restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; of (b) Collecting a certification from that person; or (c) Adding a clause of condition to the covered transaction with that person. Controls: Per 2 CFR section 200.303(a), a non-Federal entity must: 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 comply 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). Condition: The Town did not determine the suspension and debarment status of vendors with expenditures exceeding $25,000 on a timely basis, as required by federal regulations. Questioned Cost: None Context: Two of the Two vendors we selected for testing had the suspension and debarment status verified, however it was not performed timely. Cause: The Town’s procedures and internal controls over suspension and debarment are not sufficient to ensure that all vendors’ suspension and debarment status is verified timely. Effect: Failure to verity the suspension and debarment status of vendors may result in the Town issuing payments to vendors what are suspended and debarred and not authorized to provide services under the program. Repeat Finding: No Recommendation: We recommend management ensure policies and procedures include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to issuance of the contract. View of responsible officials and planned corrected actions: Management concurs with this finding. Management has implemented a policy going forward to ensure all vendors entered into a contract will sign a suspension and debarment agreement.