Reference Number: 2022-002Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: Reporting ? Federal Funding Accountability and Transparency Act (FFATA) and PR29 ? Cash on HandType of Finding: Material Weakness in Internal Control over Compliance, Material Non-ComplianceCriteria or specific requirement:Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements.The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. ?? 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)HUD requires the submission of the PR-29 - CDBG and CDBG-CV Cash on Hand Quarterly Reports. These reports are required to be submitted in the IDIS system not later than 10 days after the end of each calendar quarter.Condition:Subaward information was not reported to FSRS during FY 2022. Additionally, none of the quarterly CDBG or CDBG-CV quarterly PR29 ? Cash on Hand reports were submitted in the IDIS system during the year.Context:Zero out of two PR29? Cash on Hand reports selected for testing were submitted in the IDIS system.Zero of six subawards selected for testing were reported to FSRS. Total subawards tested were $1,602,550, and $0 was reported as required by FFATA requirements."See Schedule of Findings and Questioned Costs for chart/table"Cause:Due to staffing shortages, the County did not have the resources to input all subaward information into the FSRS system or submit the PR2 ? Cash on Hand reports for both CDBG and CDBG-CV.Effect:Subawards were not reported in FRSR in accordance with FFATA requirements. The quarterly PR-29 ? Cash on Hand reports were not filed timely which could impact the Federal agencies ability to monitor the program.Questioned costs:NoneRecommendation:We recommend the County develop internal controls and procedures to ensure that FFATA reporting requirements are met. We further recommend the County develop controls and procedures to ensure that all required subawards are reported accurately and timely to FSRS no later than the end of the month following the month of issuance. We also recommend the County develop internal controls and procedures to ensure the PR29-Cash on Hand reporting requirements are met.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-006Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 5 of 40 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$3,494Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-003Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:24 CFR Part 75, requires that grantees enter their Section 3 activities on the closeout screens in IDIS as well as within their annual reporting in the Consolidated Annual Performance and Evaluation Report (CAPER). Beginning in July 2021, grantees reporting in Disaster Recovery Grant Reporting system (DRGR) shall identify those activities that are subject to Section 3 requirements in the applicable DRGR action plan. DRGR is the management information system primarily used by CDBG-DR, CDBG-MIT, NSP, and RHP grantees to access grant funds and report performance accomplishments for grant-funded activities. The grantee must enter Section 3 accomplishments in the performance report as progress is made towards the Section 3 benchmarks.A grantee?s CAPER, submitted through the IDIS e-Con Planning Suite, is due 90 days after the close of a jurisdiction?s program year.Condition:The FY2021 CAPER report was due by September 28, 2021, but was submitted on May 17, 2022 or 231 days late.Cause:The County does not have effective controls in place to ensure reports are submitted timely.Effect:The County is not in compliance with the program?s reporting requirements which could impact the Federal agencies ability to monitor the program.Questioned Costs:NoneRecommendation:We recommend the County review and enhance their procedures to ensure that all required reports are submitted accurately and timely.Views of Responsible OfficialsSee separate Correction Action Plan related to this finding.
Reference Number: 2022-003Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:24 CFR Part 75, requires that grantees enter their Section 3 activities on the closeout screens in IDIS as well as within their annual reporting in the Consolidated Annual Performance and Evaluation Report (CAPER). Beginning in July 2021, grantees reporting in Disaster Recovery Grant Reporting system (DRGR) shall identify those activities that are subject to Section 3 requirements in the applicable DRGR action plan. DRGR is the management information system primarily used by CDBG-DR, CDBG-MIT, NSP, and RHP grantees to access grant funds and report performance accomplishments for grant-funded activities. The grantee must enter Section 3 accomplishments in the performance report as progress is made towards the Section 3 benchmarks.A grantee?s CAPER, submitted through the IDIS e-Con Planning Suite, is due 90 days after the close of a jurisdiction?s program year.Condition:The FY2021 CAPER report was due by September 28, 2021, but was submitted on May 17, 2022 or 231 days late.Cause:The County does not have effective controls in place to ensure reports are submitted timely.Effect:The County is not in compliance with the program?s reporting requirements which could impact the Federal agencies ability to monitor the program.Questioned Costs:NoneRecommendation:We recommend the County review and enhance their procedures to ensure that all required reports are submitted accurately and timely.Views of Responsible OfficialsSee separate Correction Action Plan related to this finding.
Reference Number: 2022-006Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 5 of 40 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$3,494Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-002Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: Reporting ? Federal Funding Accountability and Transparency Act (FFATA) and PR29 ? Cash on HandType of Finding: Material Weakness in Internal Control over Compliance, Material Non-ComplianceCriteria or specific requirement:Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements.The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. ?? 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)HUD requires the submission of the PR-29 - CDBG and CDBG-CV Cash on Hand Quarterly Reports. These reports are required to be submitted in the IDIS system not later than 10 days after the end of each calendar quarter.Condition:Subaward information was not reported to FSRS during FY 2022. Additionally, none of the quarterly CDBG or CDBG-CV quarterly PR29 ? Cash on Hand reports were submitted in the IDIS system during the year.Context:Zero out of two PR29? Cash on Hand reports selected for testing were submitted in the IDIS system.Zero of six subawards selected for testing were reported to FSRS. Total subawards tested were $1,602,550, and $0 was reported as required by FFATA requirements."See Schedule of Findings and Questioned Costs for chart/table"Cause:Due to staffing shortages, the County did not have the resources to input all subaward information into the FSRS system or submit the PR2 ? Cash on Hand reports for both CDBG and CDBG-CV.Effect:Subawards were not reported in FRSR in accordance with FFATA requirements. The quarterly PR-29 ? Cash on Hand reports were not filed timely which could impact the Federal agencies ability to monitor the program.Questioned costs:NoneRecommendation:We recommend the County develop internal controls and procedures to ensure that FFATA reporting requirements are met. We further recommend the County develop controls and procedures to ensure that all required subawards are reported accurately and timely to FSRS no later than the end of the month following the month of issuance. We also recommend the County develop internal controls and procedures to ensure the PR29-Cash on Hand reporting requirements are met.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-004Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19-Emergency Rental AssistanceAssistance Listing Number: 21.023Award Number and Year: 2021Compliance Requirement: ReportingType of Finding: Material Weakness in Internal Control over Compliance, Material NoncomplianceCriteria or specific requirement:Compliance: Monthly and quarterly reports are required to be submitted in accordance with Treasury guidance beginning in the first quarter of 2021 through September of 2022 for ERA1 and through September of 2025 for ERA 2. The monthly and quarterly reports are required to be submitted by the 15th of the following month.Control ? 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 the 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:For 15 of the 15 reports tested, we were unable to obtain supporting documentation to tie out the key line items on the report. We also were unable to determine if the reports were submitted timely. For 3 out of 15 reports tested, there was no evidence of review and approval of the report prior to submission.Cause:The County did not have adequate controls to ensure supporting documentation, including documentation on timely submission was retained for all reports submitted and reports were properly reviewed and approved prior to submission.Effect:The County was not in compliance with the programs reporting requirements and lacked internal controls over the review and approval of reports.Questioned Costs:UndeterminedRecommendation:We recommend that management review their policies and procedures to ensure that all monthly and quarterly reports showing timely submission and the supporting documentation used to prepare the reports are retained for audit purposes. We further recommend that all reports be reviewed and approved by someone other than the preparer prior to submission.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-007Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19-Emergency Rental AssistanceAssistance Listing Number: 21.023Award Number and Year: 2021Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 2 of 60 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$38Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-008Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 7 of 60 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$465Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-005Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance ? The Project and Expenditure Report is required to report on financial data, projects, funded, expenditures, and contracts and subawards over $50,000, and other information. These reports are required to be submitted by the last day of the month after the end of each quarter.Control ? 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 the 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:For 2 of the 2 reports tested, the report did not include amounts in the current period expenditures section. These reports were also not filed timely based on the date of submission at the bottom of the quarterly reports.Cause:The County did not have adequate controls to ensure supporting documentation, including documentation on timely submission was retained for all reports submitted.Effect:The County was not in compliance with the programs reporting requirements.Questioned Costs:UndeterminedRecommendation:We recommend that management review their policies and procedures to ensure that all monthly and quarterly reports are submitted timely, and the supporting documentation used to prepare the reports are retained for audit purposes.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-005Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance ? The Project and Expenditure Report is required to report on financial data, projects, funded, expenditures, and contracts and subawards over $50,000, and other information. These reports are required to be submitted by the last day of the month after the end of each quarter.Control ? 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 the 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:For 2 of the 2 reports tested, the report did not include amounts in the current period expenditures section. These reports were also not filed timely based on the date of submission at the bottom of the quarterly reports.Cause:The County did not have adequate controls to ensure supporting documentation, including documentation on timely submission was retained for all reports submitted.Effect:The County was not in compliance with the programs reporting requirements.Questioned Costs:UndeterminedRecommendation:We recommend that management review their policies and procedures to ensure that all monthly and quarterly reports are submitted timely, and the supporting documentation used to prepare the reports are retained for audit purposes.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-008Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 7 of 60 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$465Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-002Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: Reporting ? Federal Funding Accountability and Transparency Act (FFATA) and PR29 ? Cash on HandType of Finding: Material Weakness in Internal Control over Compliance, Material Non-ComplianceCriteria or specific requirement:Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements.The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. ?? 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)HUD requires the submission of the PR-29 - CDBG and CDBG-CV Cash on Hand Quarterly Reports. These reports are required to be submitted in the IDIS system not later than 10 days after the end of each calendar quarter.Condition:Subaward information was not reported to FSRS during FY 2022. Additionally, none of the quarterly CDBG or CDBG-CV quarterly PR29 ? Cash on Hand reports were submitted in the IDIS system during the year.Context:Zero out of two PR29? Cash on Hand reports selected for testing were submitted in the IDIS system.Zero of six subawards selected for testing were reported to FSRS. Total subawards tested were $1,602,550, and $0 was reported as required by FFATA requirements."See Schedule of Findings and Questioned Costs for chart/table"Cause:Due to staffing shortages, the County did not have the resources to input all subaward information into the FSRS system or submit the PR2 ? Cash on Hand reports for both CDBG and CDBG-CV.Effect:Subawards were not reported in FRSR in accordance with FFATA requirements. The quarterly PR-29 ? Cash on Hand reports were not filed timely which could impact the Federal agencies ability to monitor the program.Questioned costs:NoneRecommendation:We recommend the County develop internal controls and procedures to ensure that FFATA reporting requirements are met. We further recommend the County develop controls and procedures to ensure that all required subawards are reported accurately and timely to FSRS no later than the end of the month following the month of issuance. We also recommend the County develop internal controls and procedures to ensure the PR29-Cash on Hand reporting requirements are met.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-006Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 5 of 40 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$3,494Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-003Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:24 CFR Part 75, requires that grantees enter their Section 3 activities on the closeout screens in IDIS as well as within their annual reporting in the Consolidated Annual Performance and Evaluation Report (CAPER). Beginning in July 2021, grantees reporting in Disaster Recovery Grant Reporting system (DRGR) shall identify those activities that are subject to Section 3 requirements in the applicable DRGR action plan. DRGR is the management information system primarily used by CDBG-DR, CDBG-MIT, NSP, and RHP grantees to access grant funds and report performance accomplishments for grant-funded activities. The grantee must enter Section 3 accomplishments in the performance report as progress is made towards the Section 3 benchmarks.A grantee?s CAPER, submitted through the IDIS e-Con Planning Suite, is due 90 days after the close of a jurisdiction?s program year.Condition:The FY2021 CAPER report was due by September 28, 2021, but was submitted on May 17, 2022 or 231 days late.Cause:The County does not have effective controls in place to ensure reports are submitted timely.Effect:The County is not in compliance with the program?s reporting requirements which could impact the Federal agencies ability to monitor the program.Questioned Costs:NoneRecommendation:We recommend the County review and enhance their procedures to ensure that all required reports are submitted accurately and timely.Views of Responsible OfficialsSee separate Correction Action Plan related to this finding.
Reference Number: 2022-003Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:24 CFR Part 75, requires that grantees enter their Section 3 activities on the closeout screens in IDIS as well as within their annual reporting in the Consolidated Annual Performance and Evaluation Report (CAPER). Beginning in July 2021, grantees reporting in Disaster Recovery Grant Reporting system (DRGR) shall identify those activities that are subject to Section 3 requirements in the applicable DRGR action plan. DRGR is the management information system primarily used by CDBG-DR, CDBG-MIT, NSP, and RHP grantees to access grant funds and report performance accomplishments for grant-funded activities. The grantee must enter Section 3 accomplishments in the performance report as progress is made towards the Section 3 benchmarks.A grantee?s CAPER, submitted through the IDIS e-Con Planning Suite, is due 90 days after the close of a jurisdiction?s program year.Condition:The FY2021 CAPER report was due by September 28, 2021, but was submitted on May 17, 2022 or 231 days late.Cause:The County does not have effective controls in place to ensure reports are submitted timely.Effect:The County is not in compliance with the program?s reporting requirements which could impact the Federal agencies ability to monitor the program.Questioned Costs:NoneRecommendation:We recommend the County review and enhance their procedures to ensure that all required reports are submitted accurately and timely.Views of Responsible OfficialsSee separate Correction Action Plan related to this finding.
Reference Number: 2022-006Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 5 of 40 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$3,494Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-002Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program: CDBG Entitlement Grant ClusterAssistance Listing Number: 14.218Award Number and Period: B-21-UC-24-0011, B-20-UW-24-0011; 7/1/2021 ? 6/30/2029Compliance Requirement: Reporting ? Federal Funding Accountability and Transparency Act (FFATA) and PR29 ? Cash on HandType of Finding: Material Weakness in Internal Control over Compliance, Material Non-ComplianceCriteria or specific requirement:Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements.The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. ?? 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)HUD requires the submission of the PR-29 - CDBG and CDBG-CV Cash on Hand Quarterly Reports. These reports are required to be submitted in the IDIS system not later than 10 days after the end of each calendar quarter.Condition:Subaward information was not reported to FSRS during FY 2022. Additionally, none of the quarterly CDBG or CDBG-CV quarterly PR29 ? Cash on Hand reports were submitted in the IDIS system during the year.Context:Zero out of two PR29? Cash on Hand reports selected for testing were submitted in the IDIS system.Zero of six subawards selected for testing were reported to FSRS. Total subawards tested were $1,602,550, and $0 was reported as required by FFATA requirements."See Schedule of Findings and Questioned Costs for chart/table"Cause:Due to staffing shortages, the County did not have the resources to input all subaward information into the FSRS system or submit the PR2 ? Cash on Hand reports for both CDBG and CDBG-CV.Effect:Subawards were not reported in FRSR in accordance with FFATA requirements. The quarterly PR-29 ? Cash on Hand reports were not filed timely which could impact the Federal agencies ability to monitor the program.Questioned costs:NoneRecommendation:We recommend the County develop internal controls and procedures to ensure that FFATA reporting requirements are met. We further recommend the County develop controls and procedures to ensure that all required subawards are reported accurately and timely to FSRS no later than the end of the month following the month of issuance. We also recommend the County develop internal controls and procedures to ensure the PR29-Cash on Hand reporting requirements are met.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-004Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19-Emergency Rental AssistanceAssistance Listing Number: 21.023Award Number and Year: 2021Compliance Requirement: ReportingType of Finding: Material Weakness in Internal Control over Compliance, Material NoncomplianceCriteria or specific requirement:Compliance: Monthly and quarterly reports are required to be submitted in accordance with Treasury guidance beginning in the first quarter of 2021 through September of 2022 for ERA1 and through September of 2025 for ERA 2. The monthly and quarterly reports are required to be submitted by the 15th of the following month.Control ? 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 the 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:For 15 of the 15 reports tested, we were unable to obtain supporting documentation to tie out the key line items on the report. We also were unable to determine if the reports were submitted timely. For 3 out of 15 reports tested, there was no evidence of review and approval of the report prior to submission.Cause:The County did not have adequate controls to ensure supporting documentation, including documentation on timely submission was retained for all reports submitted and reports were properly reviewed and approved prior to submission.Effect:The County was not in compliance with the programs reporting requirements and lacked internal controls over the review and approval of reports.Questioned Costs:UndeterminedRecommendation:We recommend that management review their policies and procedures to ensure that all monthly and quarterly reports showing timely submission and the supporting documentation used to prepare the reports are retained for audit purposes. We further recommend that all reports be reviewed and approved by someone other than the preparer prior to submission.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-007Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19-Emergency Rental AssistanceAssistance Listing Number: 21.023Award Number and Year: 2021Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 2 of 60 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$38Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-008Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 7 of 60 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$465Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-005Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance ? The Project and Expenditure Report is required to report on financial data, projects, funded, expenditures, and contracts and subawards over $50,000, and other information. These reports are required to be submitted by the last day of the month after the end of each quarter.Control ? 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 the 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:For 2 of the 2 reports tested, the report did not include amounts in the current period expenditures section. These reports were also not filed timely based on the date of submission at the bottom of the quarterly reports.Cause:The County did not have adequate controls to ensure supporting documentation, including documentation on timely submission was retained for all reports submitted.Effect:The County was not in compliance with the programs reporting requirements.Questioned Costs:UndeterminedRecommendation:We recommend that management review their policies and procedures to ensure that all monthly and quarterly reports are submitted timely, and the supporting documentation used to prepare the reports are retained for audit purposes.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-005Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: ReportingType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance ? The Project and Expenditure Report is required to report on financial data, projects, funded, expenditures, and contracts and subawards over $50,000, and other information. These reports are required to be submitted by the last day of the month after the end of each quarter.Control ? 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 the 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:For 2 of the 2 reports tested, the report did not include amounts in the current period expenditures section. These reports were also not filed timely based on the date of submission at the bottom of the quarterly reports.Cause:The County did not have adequate controls to ensure supporting documentation, including documentation on timely submission was retained for all reports submitted.Effect:The County was not in compliance with the programs reporting requirements.Questioned Costs:UndeterminedRecommendation:We recommend that management review their policies and procedures to ensure that all monthly and quarterly reports are submitted timely, and the supporting documentation used to prepare the reports are retained for audit purposes.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-008Federal Agency: U.S. Department of TreasuryFederal Program: COVID-19 ? Coronavirus State and Local Fiscal Recovery FundsAssistance Listing Number: 21.027Award Number and Year: 2021Compliance Requirement: Allowable Costs/Cost PrinciplesType of Finding: Significant Deficiency in Internal Controls over Compliance, Other MattersCriteria or specific requirement:Compliance - 2 CFR Section 200.430 (8)(i) Standards for Documentation of Personnel Expenses states that: Charge to Federal awards for salaries and wages must be based on records that accurately reflect work performed. These records must:(i) Be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity;(iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities;(iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy;(v) Comply with the established accounting policies and practices of the non-Federal entity;(vi) Support the distribution of the employee's salary and wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish an 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 statues, regulations, and the terms and conditions of the Federal awards. 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:Time and Effort Certifications were not documented in accordance with federal requirements. The County was unable to provide adequate support to validate actual payroll expenses charged to the federal program for 7 of 60 time and effort certifications tested.Cause:The County did not have adequate controls to ensure that time and effort reporting was performed in accordance with federal requirements.Effect:There is an increased risk of charging unallowed payroll costs to the program.Questioned Costs:$465Recommendation:The County should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. The County should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.
Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.