FAC Explorer

Audit 316261

FY End
2023-06-30
Total Expended
$11.16M
Findings
2
Programs
22
Organization: Allegany County, Maryland (MD)
Year: 2023 Accepted: 2024-07-30
Auditor: Turnbull Hoover & Kahl P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479705 2023-002 Significant Deficiency Yes L
1056147 2023-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.41M Yes 1
21.019 Coronavirus Relief Fund $1.48M - 0
14.871 Section 8 Housing Choice Vouchers $900,483 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $336,907 - 0
20.507 Federal Transit_formula Grants $280,000 - 0
21.023 Emergency Rental Assistance Program $248,012 - 0
93.564 Child Support Enforcement Research $102,434 - 0
20.205 Highway Planning and Construction $102,414 - 0
21.026 Homeowner Assistance Fund $80,868 - 0
23.002 Appalachian Area Development $75,000 - 0
93.499 Low Income Household Water Assistance Program $69,677 - 0
97.042 Emergency Management Performance Grants $56,341 - 0
21.032 Local Assistance and Tribal Consistency Fund $50,000 - 0
93.563 Child Support Enforcement $43,837 - 0
14.231 Emergency Solutions Grant Program $37,594 - 0
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $34,979 - 0
11.307 Economic Adjustment Assistance $30,000 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $12,759 - 0
95.001 High Intensity Drug Trafficking Areas Program $2,984 - 0
20.600 State and Community Highway Safety $1,432 - 0
97.067 Homeland Security Grant Program $1,335 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $400 - 0

Contacts

Name Title Type
L787HTLLFJV3 Jason M. Bennett Auditee
3017775916 Richard J. Hoover, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal award activity of Allegany County, Maryland under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Allegany County, Maryland, it is not intended to and does not present the financial position, changes in financial position, or cash flows of Allegany County, Maryland. The accompanying Schedule of Expenditures of Federal Awards includes all financial activity of Allegany County Primary Government Unit only. The Financial Statements for the Allegany County Reporting Entity include the following component units in accordance with Governmental Accounting Standards Board (“GASB”) Statement 14 who are responsible for administering their own Federal programs and submitting their own Single Audit reports, if necessary. • Allegany County Board of Education • Allegany County Library System • Allegany College of Maryland • LaVale Sanitary Commission
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Oversight Agency Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The United States Department of Treasury has been designated as the oversight audit agency for Allegany County, Maryland.
Title: Pass-Through to Subrecipients Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. See the Notes to the SEFA for chart/table
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Allegany County, Maryland has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Federal Program: United States Department of Treasury; Coronavirus State and Local Fiscal Recovery Funds; Federal Assistance Listing 21.027 Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) requires all nonfederal entities to submit quarterly financial reports within 30 days after quarter-end. Condition: The County did not submit the financial report for the third quarter 2022 by the due date required in the Uniform Guidance. Cause: The third quarter 2022 financial report was filed late due to the finance department being unable to obtain the required information from various departments in a timely manner. Effect: The County is not in compliance with the reporting requirements as stipulated in the Uniform Guidance. Context: During the course of our single audit testing procedures, we noted the County’s quarterly financial reporting that was due on October 31, 2022 for the period of July 1 through September 30, 2022 was submitted on November 1, 2022. Auditors’ Recommendation: We recommend management communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the finance department in a timely manner. This will ensure that the required quarterly financial reports are filed timely as stipulated by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: We have developed an improved procedure to ensure financial reports are submitted within the due date. The plan includes discussions with department heads in order to better improve and understand the complex reporting process that is required by the funding agency. Also, finance staff will contact the departments well in advance of the due date of the report to receive the necessary information. This procedure was implemented after discovery of the late filing of the quarterly financial reporting that was due on October 31, 2022. Identification of a Repeat Finding: This is a repeat finding from the immediate previous audit, 2022-001.
Finding 2023-002
Federal Program: United States Department of Treasury; Coronavirus State and Local Fiscal Recovery Funds; Federal Assistance Listing 21.027 Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) requires all nonfederal entities to submit quarterly financial reports within 30 days after quarter-end. Condition: The County did not submit the financial report for the third quarter 2022 by the due date required in the Uniform Guidance. Cause: The third quarter 2022 financial report was filed late due to the finance department being unable to obtain the required information from various departments in a timely manner. Effect: The County is not in compliance with the reporting requirements as stipulated in the Uniform Guidance. Context: During the course of our single audit testing procedures, we noted the County’s quarterly financial reporting that was due on October 31, 2022 for the period of July 1 through September 30, 2022 was submitted on November 1, 2022. Auditors’ Recommendation: We recommend management communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the finance department in a timely manner. This will ensure that the required quarterly financial reports are filed timely as stipulated by the Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: We have developed an improved procedure to ensure financial reports are submitted within the due date. The plan includes discussions with department heads in order to better improve and understand the complex reporting process that is required by the funding agency. Also, finance staff will contact the departments well in advance of the due date of the report to receive the necessary information. This procedure was implemented after discovery of the late filing of the quarterly financial reporting that was due on October 31, 2022. Identification of a Repeat Finding: This is a repeat finding from the immediate previous audit, 2022-001.