FAC Explorer

Audit 405613

FY End
2025-09-30
Total Expended
$4.06M
Findings
2
Programs
10
Organization: Washington County Community Action Council, Inc. (MD)
Year: 2025 Accepted: 2026-06-30
Auditor: RKL LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1221248 2025-001 Material Weakness Yes N
1221249 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.28M Yes 2
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $203,260 Yes 0
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $138,549 Yes 0
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $105,950 Yes 0
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $79,000 Yes 0
93.569 COMMUNITY SERVICES BLOCK GRANT $63,097 Yes 0
20.516 JOB ACCESS AND REVERSE COMMUTE PROGRAM $56,156 Yes 0
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $26,536 Yes 0
93.647 SOCIAL SERVICES RESEARCH AND DEMONSTRATION $16,706 Yes 0
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $12,695 Yes 0

Contacts

Name Title Type
CH2SQ4RZ1KA3 Kimberly A Shunney Auditee
3017974161 Michael Buhrman Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Washington County Community Action Council, Inc. under programs of the federal government for the year ended September 30, 2025. 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 Washington County Community Action Council, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Washington County Community Action Council, Inc.
The Council had the following outstanding loan balances for the year ended September 30, 2025. There were no additional borrowings on these loans during the year ended September 30, 2025. These loan balances are also included in the federal expenditures presented in the schedule of expenditures of federal awards. Grantor Agency Assistance Listing Number Federal Programs Loaned for Beginning Balance October 1, 2024 Ending Balance September 30, 2025 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Church Street Property $ 112,500 $ 112,500 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program East Antietam Street Property 168,500 168,500 Note 3 - Federally Financed Loans (continued) Grantor Agency Assistance Listing Number Federal Programs Loaned for Beginning Balance October 1, 2024 Ending Balance September 30, 2025 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program S. Potomac Street Property $ 287,400 $ 287,400 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program View Street Property 258,944 258,944 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Franklin Street Property 231,545 231,545 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program West Washington Street Property 159,949 159,949 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program West Side Avenue Property 190,000 190,000 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Charles Street Property 79,485 79,485 Note 3 - Federally Financed Loans (continued) Grantor Agency Assistance Listing Number Federal Programs Loaned for Beginning Balance October 1, 2024 Ending Balance September 30, 2025 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Winter Street Property $ 102,670 $ 102,670 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program 1930 Abbey Lane Property 118,643 118,643 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program 1864 Abbey Lane Property 127,613 127,613 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program 35 Madison Avenue Property 28,750 28,750 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Fairground Avenue Property 152,545 152,545 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Ross Street Property 86,620 86,620 Note 3 - Federally Financed Loans (continued) Grantor Agency Assistance Listing Number Federal Programs Loaned for Beginning Balance October 1, 2024 Ending Balance September 30, 2025 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Kellys Lane Property $ 110,955 $ 110,955 Department of Housing and Urban Development - Passed through the Department of Housing and Community Development of the State of Maryland 14.239 HOME Investment Partnership Program Carrollton Avenue Property 66,179 61,088 $ 2,282,298 $ 2,277,207
The following reconciliation shows differences between federal revenue reported on the statement of activities for the year ended September 30, 2025 included in the basic financial statements and the total expenditures reported on the schedule of expenditures of federal awards for the year ended September 30, 2025. Total federal revenue per the statement of activities $ 1,776,648 Add HOME Investment Partnership Program - Loans 2,282,298 Total Expenditures per the Schedule of Expenditures of Federal Awards $ 4,058,946

Finding Details

Finding 2025-001
Material Weakness in Internal Control over Compliance; Material Noncompliance - Special Tests and Provisions - Housing Quality Standards Criteria Management is required to perform on-site inspections and maintain adequate documentation to determine compliance with property standards and verify the information submitted by the owners. Condition As a result of our testing, we found the Council did not maintain sufficient documentation to support that required inspections were performed in accordance with program requirements. In addition, controls over documenting and retaining evidence of inspections were not operating effectively. Accordingly, we identified both an instance of noncompliance and a related deficiency in internal control over compliance. Cause Management did not maintain or retain complete inspection documentation and did not have adequate procedures in place to ensure inspection records were consistently prepared, reviewed, and retained. Effect Without sufficient documentation, the Council is unable to demonstrate compliance with inspection requirements and the operation of related internal controls. This increases the risk that noncompliance, errors, or deficiencies may not be identified or corrected in a timely manner. Recommendation We recommend management strengthen its documentation retention and monitoring procedures to ensure inspection activities are consistently performed, documented, and retained in support of compliance and control requirements. Questioned Costs None. Management's Response Management has implemented new procedures to ensure monthly inspections are formally documented and maintained.
Finding 2025-002
Material Weaknesses in Internal Control over Compliance; Material Noncompliance - Eligibility Criteria Management is required to determine if each family is income eligible by determining the family’s annual income and maintaining records of annual recertifications for each family assisted. Condition During our testing, management could not locate updated annual recertification documentation for certain residents selected for review. As a result, we were unable to verify that annual recertifications were completed in accordance with applicable program requirements. Cause Management did not have adequate procedures in place to ensure annual recertification records were consistently completed, properly maintained, and retained. Effect As a result of the missing annual recertification documentation, the Council could not demonstrate compliance with applicable program requirements for all residents tested. This increases the risk that resident eligibility or continued participation may not be properly supported and that noncompliance may not be prevented or detected timely. Recommendation We recommend the Council strengthen its internal controls over the annual recertification process to ensure required recertifications are completed timely. We further recommend that management implement periodic reviews to verify that annual recertification documentation is completed annually and on file for each resident. Questioned Costs None. Management's Response Management has implemented new procedures to ensure annual recertifications are completed annually for all residents and formal document is maintained in each resident file.