FAC Explorer

Audit 351628

FY End
2024-06-30
Total Expended
$242.44M
Findings
10
Programs
94
Organization: Baltimore County, Maryland (MD)
Year: 2024 Accepted: 2025-03-31
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547375 2024-003 Significant Deficiency - N
547376 2024-003 Significant Deficiency - N
547377 2024-003 Significant Deficiency - N
547378 2024-002 Significant Deficiency Yes M
547379 2024-002 Significant Deficiency Yes M
1123817 2024-003 Significant Deficiency - N
1123818 2024-003 Significant Deficiency - N
1123819 2024-003 Significant Deficiency - N
1123820 2024-002 Significant Deficiency Yes M
1123821 2024-002 Significant Deficiency Yes M

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $91.63M Yes 1
14.239 Home Investment Partnerships Program $24.36M - 0
14.218 Community Development Block Grants/entitlement Grants $3.60M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.09M Yes 1
21.023 Emergency Rental Assistance Program $2.73M - 0
93.568 Low-Income Home Energy Assistance $1.97M - 0
14.241 Housing Opportunities for Persons with Aids $1.71M - 0
93.558 Temporary Assistance for Needy Families $1.36M - 0
93.917 Hiv Care Formula Grants $1.36M - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $1.27M - 0
16.922 Equitable Sharing Program $903,906 - 0
17.259 Wioa Youth Activities $879,926 Yes 0
14.267 Continuum of Care Program $869,827 - 0
93.053 Nutrition Services Incentive Program $846,469 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $805,589 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $789,698 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $725,563 - 0
10.551 Supplemental Nutrition Assistance Program $712,939 - 0
93.069 Public Health Emergency Preparedness $668,518 - 0
21.019 Coronavirus Relief Fund $623,661 - 0
93.994 Maternal and Child Health Services Block Grant to the States $621,974 - 0
93.658 Foster Care Title IV-E $620,986 - 0
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $601,739 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $553,166 - 0
17.278 Wioa Dislocated Worker Formula Grants $535,367 Yes 0
14.231 Emergency Solutions Grant Program $528,028 - 0
16.833 National Sexual Assault Kit Initiative $523,960 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $512,024 - 0
93.767 Children's Health Insurance Program $496,298 - 0
16.575 Crime Victim Assistance $482,090 - 0
93.590 Community-Based Child Abuse Prevention Grants $387,381 - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $381,639 - 0
93.958 Block Grants for Community Mental Health Services $345,675 - 0
93.940 Hiv Prevention Activities Health Department Based $332,979 - 0
93.563 Child Support Services $290,005 - 0
97.042 Emergency Management Performance Grants $289,237 - 0
93.268 Immunization Cooperative Agreements $285,601 - 0
14.896 Family Self-Sufficiency Program $276,847 - 0
21.016 Equitable Sharing $263,663 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $259,125 - 0
11.307 Economic Adjustment Assistance $250,928 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $243,771 - 0
16.000 Organized Crime Drug Enforcement Task Force $240,047 - 0
93.914 Hiv Emergency Relief Project Grants $230,855 - 0
14.905 Lead Hazard Reduction Demonstration Grant Program $220,134 - 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $206,412 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $204,489 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $190,119 - 0
16.606 State Criminal Alien Assistance Program $182,114 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $177,677 - 0
97.067 Homeland Security Grant Program $174,509 - 0
93.788 Opioid Str $145,353 - 0
17.270 Reentry Employment Opportunities $140,504 - 0
14.879 Mainstream Vouchers $123,590 Yes 1
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $123,425 - 0
14.235 Supportive Housing Program $119,839 - 0
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $113,004 - 0
20.616 National Priority Safety Programs $112,518 - 0
93.778 Medical Assistance Program $111,524 - 0
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $100,878 - 0
16.015 Missing Alzheimer's Disease Patient Assistance Program $94,395 - 0
17.258 Wioa Adult Program $92,247 Yes 0
93.324 State Health Insurance Assistance Program $91,882 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $90,996 - 0
16.710 Public Safety Partnership and Community Policing Grants $90,652 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $76,306 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $72,464 - 0
97.044 Assistance to Firefighters Grant $71,336 - 0
16.607 Bulletproof Vest Partnership Program $59,327 - 0
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $57,057 - 0
84.181 Special Education-Grants for Infants and Families $50,000 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $48,011 - 0
16.000 Social Services $47,994 - 0
16.000 Taskforce Reimbursements $42,089 - 0
97.056 Port Security Grant Program $35,950 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $31,536 - 0
11.098 Connecting Minority Communities Pilot Program $27,500 - 0
93.217 Family Planning Services $27,398 - 0
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $27,363 - 0
16.588 Violence Against Women Formula Grants $20,823 - 0
16.726 Juvenile Mentoring Program $10,294 - 0
20.218 Motor Carrier Safety Assistance $9,427 - 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $7,865 - 0
15.930 Chesapeake Bay Gateways Network $5,256 - 0
93.103 Food and Drug Administration Research $5,148 - 0
20.507 Federal Transit Formula Grants $4,116 - 0
16.000 Homeland Security $2,504 - 0
16.741 Dna Backlog Reduction Program $2,352 - 0
16.000 Internal Revenue Service $1,980 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1,000 - 0
20.600 State and Community Highway Safety $375 - 0
93.464 Acl Assistive Technology $130 - 0
17.235 Senior Community Service Employment Program $-6,738 - 0
14.871 Emergency Housing Vouchers $-41,423 Yes 1

Contacts

Name Title Type
QQBNBPDF54M9 Becky Lang Auditee
4108872574 Cheri Amoss Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Baltimore County, Maryland (the County), excluding those programs of the Board of Library Trustees of Baltimore County, Baltimore County Public Schools, and the Community College of Baltimore County. The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other state and local governmental agencies and nonprofit organizations are included in the accompanying Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting as described in Note 1 to the County’s basic financial statements. 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), with the exception of Assistance Listing Number (ALN) 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Also, some expenditure amounts are negative due to adjustments made to prior year grants. De Minimis Rate Used: Y Rate Explanation: The County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Baltimore County, Maryland (the County), excluding those programs of the Board of Library Trustees of Baltimore County, Baltimore County Public Schools, and the Community College of Baltimore County. The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other state and local governmental agencies and nonprofit organizations are included in the accompanying Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting as described in Note 1 to the County’s basic financial statements. 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), with the exception of Assistance Listing Number (ALN) 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Also, some expenditure amounts are negative due to adjustments made to prior year grants.
Title: WIC Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Baltimore County, Maryland (the County), excluding those programs of the Board of Library Trustees of Baltimore County, Baltimore County Public Schools, and the Community College of Baltimore County. The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other state and local governmental agencies and nonprofit organizations are included in the accompanying Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting as described in Note 1 to the County’s basic financial statements. 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), with the exception of Assistance Listing Number (ALN) 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Also, some expenditure amounts are negative due to adjustments made to prior year grants. De Minimis Rate Used: Y Rate Explanation: The County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Department of Agriculture - Maryland State Health Department Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) (Assistance Listing number 10.557) is a state of Maryland administered program that uses local governments to assist in screening participant eligibility and distributing food commodity vouchers. Distributed food vouchers are issued, controlled, collected, valued, audited, and canceled by the state of Maryland. Through confirmation with the state of Maryland, the value of WIC vouchers redeemed by Maryland residents living in the County totaled $16,583,420 for the fiscal year ended June 30, 2024. This amount is not included in the accompanying Schedule.
Title: Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Baltimore County, Maryland (the County), excluding those programs of the Board of Library Trustees of Baltimore County, Baltimore County Public Schools, and the Community College of Baltimore County. The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other state and local governmental agencies and nonprofit organizations are included in the accompanying Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting as described in Note 1 to the County’s basic financial statements. 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), with the exception of Assistance Listing Number (ALN) 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Also, some expenditure amounts are negative due to adjustments made to prior year grants. De Minimis Rate Used: Y Rate Explanation: The County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The County administers loans under the Community Development Block Grant and HOME Investment Partnership Program (Assistance Listing numbers 14.218 and 14.239, respectively) with continuing compliance requirements. The outstanding balances of the loans at June 30, 2024 were $26,507,232 for Community Development Block Grant and $19,194,042 for HOME Investment Partnership Program. As required under the Uniform Guidance, the loan balance at the beginning of the year are presented in the Schedule for these programs. The County administers loans under the Emergency Efficiency and Conservation Block Grant (Assistance Listing number 81.128) without continuing compliance requirements and, therefore, is not presented in the Schedule. The outstanding balance of the loans at June 30, 2024, were $55,697. There were no new loans expended under this program during the fiscal year.
Title: Medical Assistance Program (Medicaid Title XIX) Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Baltimore County, Maryland (the County), excluding those programs of the Board of Library Trustees of Baltimore County, Baltimore County Public Schools, and the Community College of Baltimore County. The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other state and local governmental agencies and nonprofit organizations are included in the accompanying Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting as described in Note 1 to the County’s basic financial statements. 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), with the exception of Assistance Listing Number (ALN) 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Also, some expenditure amounts are negative due to adjustments made to prior year grants. De Minimis Rate Used: Y Rate Explanation: The County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Maryland’s Department of Health and Mental Hygiene-Medical Assistance Program (Medicaid; Title XIX; Assistance Listing number 93.778) is a state administered program that utilizes local governments to provide patient care services to Medicaid eligible individuals. The federal compliance related to these expenditures is the responsibility of the Maryland Department of Health and Mental Hygiene. The value of the patient care services to the eligible individuals living in the County totaled $7,751,603 for the fiscal year ended June 30, 2024. This amount is not included in the accompanying Schedule.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Baltimore County, Maryland (the County), excluding those programs of the Board of Library Trustees of Baltimore County, Baltimore County Public Schools, and the Community College of Baltimore County. The County reporting entity is defined in Note 1 to the County’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other state and local governmental agencies and nonprofit organizations are included in the accompanying Schedule. The accompanying Schedule is presented using the modified accrual basis of accounting as described in Note 1 to the County’s basic financial statements. 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), with the exception of Assistance Listing Number (ALN) 21.019, which follows criteria determined by the Department of Treasury for allowability of costs. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the basic financial statements. Also, some expenditure amounts are negative due to adjustments made to prior year grants. De Minimis Rate Used: Y Rate Explanation: The County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The County has elected to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.

Finding Details

Finding 2024-003
Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award Number and Year: MD033-V0011-048, MD033VA0001 Compliance Requirement: Special Tests – Housing Quality Standards Inspections Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the County's Administrative Plan, all units passing the initial or annual inspection during the immediate twelve months prior will be eligible for a biennial inspection 24 months thereafter. All other units not passing the initial annual inspection will be deemed ineligible for the biennial process until such unit receives a passing grade on an initial annual inspection; and will remain on an annual inspection cycle until such time. Condition: During our testing of 40 files for annual HQS annual inspection requirements, we noted four files in which the HQS inspection was not performed within 24 months of the previous inspection. Cause: The County did not have adequate controls to ensure that HQS inspections were performed in accordance with federal requirements and the County’s administrative plan. Effect: The County is not in compliance with the HQS requirements set forth by HUD and in the administrative plan. Questioned Costs: Undetermined. Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-003
Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award Number and Year: MD033-V0011-048, MD033VA0001 Compliance Requirement: Special Tests – Housing Quality Standards Inspections Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the County's Administrative Plan, all units passing the initial or annual inspection during the immediate twelve months prior will be eligible for a biennial inspection 24 months thereafter. All other units not passing the initial annual inspection will be deemed ineligible for the biennial process until such unit receives a passing grade on an initial annual inspection; and will remain on an annual inspection cycle until such time. Condition: During our testing of 40 files for annual HQS annual inspection requirements, we noted four files in which the HQS inspection was not performed within 24 months of the previous inspection. Cause: The County did not have adequate controls to ensure that HQS inspections were performed in accordance with federal requirements and the County’s administrative plan. Effect: The County is not in compliance with the HQS requirements set forth by HUD and in the administrative plan. Questioned Costs: Undetermined. Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-003
Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award Number and Year: MD033-V0011-048, MD033VA0001 Compliance Requirement: Special Tests – Housing Quality Standards Inspections Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the County's Administrative Plan, all units passing the initial or annual inspection during the immediate twelve months prior will be eligible for a biennial inspection 24 months thereafter. All other units not passing the initial annual inspection will be deemed ineligible for the biennial process until such unit receives a passing grade on an initial annual inspection; and will remain on an annual inspection cycle until such time. Condition: During our testing of 40 files for annual HQS annual inspection requirements, we noted four files in which the HQS inspection was not performed within 24 months of the previous inspection. Cause: The County did not have adequate controls to ensure that HQS inspections were performed in accordance with federal requirements and the County’s administrative plan. Effect: The County is not in compliance with the HQS requirements set forth by HUD and in the administrative plan. Questioned Costs: Undetermined. Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-002
Reference Number: 2024-002 Prior Year Finding: 2023-007 Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: 2021 Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: Compliance - 2 CFR Section 200.332 – Requirements for Pass-Through Entities states in part, that all pass-through entities must: (a) Verify that every subrecipient is audited as required by Subpart F – Audit Requirements of this part when it is expected that the subrecipient’s Federal award expended during the respective fiscal year equaled or exceeded the threshold set forth in section 200.501 Audit requirements. Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish a 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: The County was not able to provide documentation to show it ensured its subrecipients were audited as required by 2 CFR Part 200 Subpart F – Audit Requirements (Subpart F). Context: Exceptions were noted for 7 of 7 subrecipients selected for testing: • The County was unable to provide support that it ensured the subrecipient was audited as required by Subpart F. The County could not produce evidence of verification that the subrecipient’s Federal awards expended during the fiscal year were below the threshold set forth in section 200.501 Audit Requirements. Cause: The County did not establish effective internal controls and procedures over subrecipient monitoring. Effect: Without ensuring subrecipients have obtained audits as required by Subpart F, there is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple years, and these discrepancies may not be properly monitored, detected, and corrected by the County personnel on a timely basis. Questioned Costs: Undetermined. Recommendation: The County should review and enhance internal controls and procedures to ensure that evaluation of independent audits is performed. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-002
Reference Number: 2024-002 Prior Year Finding: 2023-007 Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: 2021 Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: Compliance - 2 CFR Section 200.332 – Requirements for Pass-Through Entities states in part, that all pass-through entities must: (a) Verify that every subrecipient is audited as required by Subpart F – Audit Requirements of this part when it is expected that the subrecipient’s Federal award expended during the respective fiscal year equaled or exceeded the threshold set forth in section 200.501 Audit requirements. Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish a 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: The County was not able to provide documentation to show it ensured its subrecipients were audited as required by 2 CFR Part 200 Subpart F – Audit Requirements (Subpart F). Context: Exceptions were noted for 7 of 7 subrecipients selected for testing: • The County was unable to provide support that it ensured the subrecipient was audited as required by Subpart F. The County could not produce evidence of verification that the subrecipient’s Federal awards expended during the fiscal year were below the threshold set forth in section 200.501 Audit Requirements. Cause: The County did not establish effective internal controls and procedures over subrecipient monitoring. Effect: Without ensuring subrecipients have obtained audits as required by Subpart F, there is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple years, and these discrepancies may not be properly monitored, detected, and corrected by the County personnel on a timely basis. Questioned Costs: Undetermined. Recommendation: The County should review and enhance internal controls and procedures to ensure that evaluation of independent audits is performed. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-003
Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award Number and Year: MD033-V0011-048, MD033VA0001 Compliance Requirement: Special Tests – Housing Quality Standards Inspections Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the County's Administrative Plan, all units passing the initial or annual inspection during the immediate twelve months prior will be eligible for a biennial inspection 24 months thereafter. All other units not passing the initial annual inspection will be deemed ineligible for the biennial process until such unit receives a passing grade on an initial annual inspection; and will remain on an annual inspection cycle until such time. Condition: During our testing of 40 files for annual HQS annual inspection requirements, we noted four files in which the HQS inspection was not performed within 24 months of the previous inspection. Cause: The County did not have adequate controls to ensure that HQS inspections were performed in accordance with federal requirements and the County’s administrative plan. Effect: The County is not in compliance with the HQS requirements set forth by HUD and in the administrative plan. Questioned Costs: Undetermined. Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-003
Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award Number and Year: MD033-V0011-048, MD033VA0001 Compliance Requirement: Special Tests – Housing Quality Standards Inspections Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the County's Administrative Plan, all units passing the initial or annual inspection during the immediate twelve months prior will be eligible for a biennial inspection 24 months thereafter. All other units not passing the initial annual inspection will be deemed ineligible for the biennial process until such unit receives a passing grade on an initial annual inspection; and will remain on an annual inspection cycle until such time. Condition: During our testing of 40 files for annual HQS annual inspection requirements, we noted four files in which the HQS inspection was not performed within 24 months of the previous inspection. Cause: The County did not have adequate controls to ensure that HQS inspections were performed in accordance with federal requirements and the County’s administrative plan. Effect: The County is not in compliance with the HQS requirements set forth by HUD and in the administrative plan. Questioned Costs: Undetermined. Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-003
Reference Number: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award Number and Year: MD033-V0011-048, MD033VA0001 Compliance Requirement: Special Tests – Housing Quality Standards Inspections Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Per the County's Administrative Plan, all units passing the initial or annual inspection during the immediate twelve months prior will be eligible for a biennial inspection 24 months thereafter. All other units not passing the initial annual inspection will be deemed ineligible for the biennial process until such unit receives a passing grade on an initial annual inspection; and will remain on an annual inspection cycle until such time. Condition: During our testing of 40 files for annual HQS annual inspection requirements, we noted four files in which the HQS inspection was not performed within 24 months of the previous inspection. Cause: The County did not have adequate controls to ensure that HQS inspections were performed in accordance with federal requirements and the County’s administrative plan. Effect: The County is not in compliance with the HQS requirements set forth by HUD and in the administrative plan. Questioned Costs: Undetermined. Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-002
Reference Number: 2024-002 Prior Year Finding: 2023-007 Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: 2021 Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: Compliance - 2 CFR Section 200.332 – Requirements for Pass-Through Entities states in part, that all pass-through entities must: (a) Verify that every subrecipient is audited as required by Subpart F – Audit Requirements of this part when it is expected that the subrecipient’s Federal award expended during the respective fiscal year equaled or exceeded the threshold set forth in section 200.501 Audit requirements. Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish a 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: The County was not able to provide documentation to show it ensured its subrecipients were audited as required by 2 CFR Part 200 Subpart F – Audit Requirements (Subpart F). Context: Exceptions were noted for 7 of 7 subrecipients selected for testing: • The County was unable to provide support that it ensured the subrecipient was audited as required by Subpart F. The County could not produce evidence of verification that the subrecipient’s Federal awards expended during the fiscal year were below the threshold set forth in section 200.501 Audit Requirements. Cause: The County did not establish effective internal controls and procedures over subrecipient monitoring. Effect: Without ensuring subrecipients have obtained audits as required by Subpart F, there is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple years, and these discrepancies may not be properly monitored, detected, and corrected by the County personnel on a timely basis. Questioned Costs: Undetermined. Recommendation: The County should review and enhance internal controls and procedures to ensure that evaluation of independent audits is performed. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.
Finding 2024-002
Reference Number: 2024-002 Prior Year Finding: 2023-007 Federal Agency: U.S. Department of Treasury Federal Program: COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Award Number and Year: 2021 Compliance Requirement: Subrecipient Monitoring Type of Finding: Significant Deficiency in Internal Controls over Compliance, Other Matters Criteria or Specific Requirement: Compliance - 2 CFR Section 200.332 – Requirements for Pass-Through Entities states in part, that all pass-through entities must: (a) Verify that every subrecipient is audited as required by Subpart F – Audit Requirements of this part when it is expected that the subrecipient’s Federal award expended during the respective fiscal year equaled or exceeded the threshold set forth in section 200.501 Audit requirements. Control - Per 2 CDF 200.303(a), a non-Federal entity must: Establish a 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: The County was not able to provide documentation to show it ensured its subrecipients were audited as required by 2 CFR Part 200 Subpart F – Audit Requirements (Subpart F). Context: Exceptions were noted for 7 of 7 subrecipients selected for testing: • The County was unable to provide support that it ensured the subrecipient was audited as required by Subpart F. The County could not produce evidence of verification that the subrecipient’s Federal awards expended during the fiscal year were below the threshold set forth in section 200.501 Audit Requirements. Cause: The County did not establish effective internal controls and procedures over subrecipient monitoring. Effect: Without ensuring subrecipients have obtained audits as required by Subpart F, there is an increased risk that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal funds over multiple years, and these discrepancies may not be properly monitored, detected, and corrected by the County personnel on a timely basis. Questioned Costs: Undetermined. Recommendation: The County should review and enhance internal controls and procedures to ensure that evaluation of independent audits is performed. Views of Responsible Officials: The County agrees with this finding. See separate Correction Action Plan related to this finding.