FAC Explorer

Audit 334095

FY End
2024-06-30
Total Expended
$154.65M
Findings
4
Programs
23
Organization: Anne Arundel County Board of Education (MD)
Year: 2024 Accepted: 2024-12-20
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516272 2024-001 Significant Deficiency - I
516273 2024-002 Significant Deficiency - L
1092714 2024-001 Significant Deficiency - I
1092715 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
12.600 Community Investment $23.53M Yes 0
10.555 National School Lunch Program $16.22M - 0
84.041 Impact Aid $5.89M - 0
10.553 School Breakfast Program $5.64M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.19M Yes 2
10.558 Child and Adult Care Food Program $529,396 - 0
10.559 Summer Food Service Program for Children $395,056 - 0
84.027 Special Education Grants to States $347,023 - 0
84.424 Student Support and Academic Enrichment Program $248,891 - 0
12.556 Competitive Grants: Promoting K-12 Student Achievement at Military-Connected Schools $248,193 - 0
93.575 Child Care and Development Block Grant $215,000 - 0
84.184 School Safely National Activities $208,809 - 0
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $115,006 - 0
84.051 Career and Technical Education -- National Programs $81,000 - 0
84.196 Education for Homeless Children and Youth $73,143 - 0
84.048 Career and Technical Education -- Basic Grants to States $65,413 - 0
84.181 Special Education-Grants for Infants and Families $61,196 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $37,426 - 0
84.365 English Language Acquisition State Grants $31,374 - 0
84.010 Title I Grants to Local Educational Agencies $23,022 Yes 0
84.425 Education Stabilization Fund $9,736 - 0
84.173 Special Education Preschool Grants $9,000 - 0
10.649 Pandemic Ebt Administrative Costs $6,180 - 0

Contacts

Name Title Type
F9ADMUHJFCD3 Matthew Stanski Auditee
4102225200 Cheri Amos Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 SINGLE AUDIT REPORTING ENTITY Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule or SEFA) includes the federal award activity of the Board of Education of Anne Arundel County under programs of the federal government for the year ended June 30, 2024.
Title: NOTE 2 BASIS OF ACCOUNTING Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: NOTE 3 RELATION TO BASIC FINANCIAL STATEMENTS AND FEDERAL FINANCIAL REPORTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. Amounts reported in the accompanying SEFA agree with amounts reported in the Board’s basic financial statements and the related federal financial reports submitted by the Board. Total expenditures per the SEFA reconciles to the Board’s basic financial statements as follows: See the Notes to the SEFA for chart/table
Title: NOTE 4 INDIRECT COST RATE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance for all awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Board has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The Board has not elected to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.

Finding Details

Finding 2024-001
2024-001 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Compliance: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. 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/Context: For one of five vendors selected for testing, the Board was unable to provide documentation that it had verified the suspension and debarment status before entering into covered transactions with the vendor. Questioned Costs: There are no questioned costs related to this finding as the vendor was not federally suspended or debarred. Cause: The Board’s procedures and internal controls over suspension and debarment are not sufficient to ensure that all vendors’ suspension and debarment status was verified timely. Effect: Failure to verify the suspension and debarment status of vendors may result in the procurement of goods or services from vendors that are suspended or debarred and result in unallowable expenditures charged to the program. Repeat Finding: No Recommendation: We recommend that the Board review its policies and procedures to ensure they include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to entering into covered transactions. Views of responsible officials: There is no disagreement with the finding.
Finding 2024-002
2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 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/Context: The Board is required to submit monthly Financial Status Reports (FSR) to the Maryland State Department of Education (MSDE). MSDE utilizes these reports as reimbursement requests and subsequently submits payment to the Board based on reported expenditures. For one of four monthly FSR selected for testing, the August 2023 report, the Board was unable to provide documentation that it had reviewed and approved the report prior to submission to MSDE. Questioned Costs: There are no questioned costs related to this finding as the FSR was properly supported by underlying documentation of the associated expenditures. Cause: The Board did not have sufficient policies and procedures over internal controls to maintain evidence of review and approval of the FSR reports until November 2023. Effect: The lack of a formal review and approval process could result in inaccurate amounts reported and reimbursed for the Federal programs. Repeat Finding: NoRecommendation: We recommend that the Board continue with established policies and procedures implemented in November 2023 to ensure that documentation supporting the Board’s review and approval of the monthly FSR reimbursement requests are retained for audit purposes. Views of responsible officials: There is no disagreement with the finding.
Finding 2024-001
2024-001 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Compliance: Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. “Covered transactions” include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. 2 CFR 180.300 states that an entity may determine suspension and debarment status by: (a) Checking SAM (System for Award Management) Exclusions; or (b) Collecting a certification from that person; or (c) Adding a clause or condition to the covered transaction with that person. 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/Context: For one of five vendors selected for testing, the Board was unable to provide documentation that it had verified the suspension and debarment status before entering into covered transactions with the vendor. Questioned Costs: There are no questioned costs related to this finding as the vendor was not federally suspended or debarred. Cause: The Board’s procedures and internal controls over suspension and debarment are not sufficient to ensure that all vendors’ suspension and debarment status was verified timely. Effect: Failure to verify the suspension and debarment status of vendors may result in the procurement of goods or services from vendors that are suspended or debarred and result in unallowable expenditures charged to the program. Repeat Finding: No Recommendation: We recommend that the Board review its policies and procedures to ensure they include the three options for determining suspension and debarment status listed in 2 CFR 180.300 and that controls are sufficient to ensure that the suspension and debarment status is verified for all vendors prior to entering into covered transactions. Views of responsible officials: There is no disagreement with the finding.
Finding 2024-002
2024-002 Federal Agency: U.S. Department of Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Number and Year: None Pass-Through Agency: Maryland State Department of Education Pass-Through Number: 211837-01 Award Period: 3/3/2021 – 12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 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/Context: The Board is required to submit monthly Financial Status Reports (FSR) to the Maryland State Department of Education (MSDE). MSDE utilizes these reports as reimbursement requests and subsequently submits payment to the Board based on reported expenditures. For one of four monthly FSR selected for testing, the August 2023 report, the Board was unable to provide documentation that it had reviewed and approved the report prior to submission to MSDE. Questioned Costs: There are no questioned costs related to this finding as the FSR was properly supported by underlying documentation of the associated expenditures. Cause: The Board did not have sufficient policies and procedures over internal controls to maintain evidence of review and approval of the FSR reports until November 2023. Effect: The lack of a formal review and approval process could result in inaccurate amounts reported and reimbursed for the Federal programs. Repeat Finding: NoRecommendation: We recommend that the Board continue with established policies and procedures implemented in November 2023 to ensure that documentation supporting the Board’s review and approval of the monthly FSR reimbursement requests are retained for audit purposes. Views of responsible officials: There is no disagreement with the finding.