FAC Explorer

Audit 351962

FY End
2024-06-30
Total Expended
$1.45M
Findings
2
Programs
1
Organization: Prince George's County Economic Development Corporation (MD)
Year: 2024 Accepted: 2025-03-31
Auditor: Gross Mendelsohn & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
548620 2024-001 Significant Deficiency - I
1125062 2024-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.45M Yes 1

Contacts

Name Title Type
F77LU1WV4YE9 Ramsey Koojo Auditee
3015834650 Lisa Johnson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Prince George’s County Economic Development Corporation (the “Corporation”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
Title: Summary of Significant Accounting Policies 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The corporation has elected not to use the 10% de minimis indirect cost rate allowed under the 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The corporation has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Condition: Seven contractors were selected for testing procurement, suspension and debarment. Our testing for procurement, suspension, and debarment indicated that there was no documentation of the cost and price analysis associated with the selection of the contractors used for procurement under the federal award. Furthermore, we noted there was no documentation for the verification of suspension and debarment for the contractors selected for testing. Criteria: Procurement, suspension and debarment regulations under 2 CFR should be followed. Cause: While the Corporation maintained adequate written procedures related to procurement, we were unable to view documentation of the cost and price analysis that was performed with the selection of the contractors. Procedures were not consistently documented to verify if vendors contracted with the Corporation related to the federal program in excess of $25,000 are not suspended, debarred or otherwise excluded from doing business. Effect: Noncompliance with the federal award program’s procurement, suspension and debarment compliance requirements could occur and not be detected and corrected timely. Recommendation: We noted that management has documented procedures to address procurement, suspension and debarment, however, we recommend that the Corporation ensure the established procedures are consistently followed and documented for all contracts entered into using federal awards. Views of Responsible Officials and Planned Corrective Actions: The Corporation has consistently adhered to all procurement procedures and addressed the need for documenting every procedure, including verifying whether a corporation is suspended or debarred. The Finance Department will have complete oversight of the entire process to ensure proper documentation as recommended during the FY2024 audit.
Finding 2024-001
Condition: Seven contractors were selected for testing procurement, suspension and debarment. Our testing for procurement, suspension, and debarment indicated that there was no documentation of the cost and price analysis associated with the selection of the contractors used for procurement under the federal award. Furthermore, we noted there was no documentation for the verification of suspension and debarment for the contractors selected for testing. Criteria: Procurement, suspension and debarment regulations under 2 CFR should be followed. Cause: While the Corporation maintained adequate written procedures related to procurement, we were unable to view documentation of the cost and price analysis that was performed with the selection of the contractors. Procedures were not consistently documented to verify if vendors contracted with the Corporation related to the federal program in excess of $25,000 are not suspended, debarred or otherwise excluded from doing business. Effect: Noncompliance with the federal award program’s procurement, suspension and debarment compliance requirements could occur and not be detected and corrected timely. Recommendation: We noted that management has documented procedures to address procurement, suspension and debarment, however, we recommend that the Corporation ensure the established procedures are consistently followed and documented for all contracts entered into using federal awards. Views of Responsible Officials and Planned Corrective Actions: The Corporation has consistently adhered to all procurement procedures and addressed the need for documenting every procedure, including verifying whether a corporation is suspended or debarred. The Finance Department will have complete oversight of the entire process to ensure proper documentation as recommended during the FY2024 audit.