FAC Explorer

Audit 8141

FY End
2023-06-30
Total Expended
$10.66M
Findings
4
Programs
11
Organization: City of Cumberland, Maryland (MD)
Year: 2023 Accepted: 2023-12-21
Auditor: Turnbull Hoover & Kahl P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6199 2023-001 Significant Deficiency - L
6200 2023-001 Significant Deficiency - L
582641 2023-001 Significant Deficiency - L
582642 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.57M - 0
14.218 Community Development Block Grants/entitlement Grants $253,181 Yes 0
16.710 Public Safety Partnership and Community Policing Grants $248,747 - 0
20.205 Highway Planning and Construction $231,915 Yes 0
14.871 Section 8 Housing Choice Vouchers $105,740 Yes 0
14.880 Family Unification Program (fup) $50,745 Yes 0
95.001 High Intensity Drug Trafficking Areas Program $25,160 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $6,193 - 0
14.879 Mainstream Vouchers $5,219 Yes 0
16.607 Bulletproof Vest Partnership Program $4,835 - 0
20.616 State and Community Highway Safety $830 - 0

Contacts

Name Title Type
CUVLXQPKHJP9 Mark Gandolfi Auditee
3017596404 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 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 the City of Cumberland, Maryland under programs of the federal government for the year ended June 30, 2023. The information in the 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 the City of Cumberland, Maryland, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the City of Cumberland, Maryland.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the 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 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 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 the City of Cumberland, Maryland.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the 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 City of Cumberland, Maryland has elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
Title: Rehabilitation Loans Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the 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 CDBG rehabilitation loans are administered directly by the City of Cumberland, Maryland. The balances and transactions relating to this program are included in the City of Cumberland, Maryland’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the accompanying schedule of expenditures of federal awards. The balance of the loans outstanding at June 30, 2023 is $0.
Title: Pass-through to Subrecipients Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the 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

Finding Details

Finding 2023-001
Federal Program: Department of Housing and Urban Development; CDBG Cluster; Federal Assistance Listing #14.218 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 City of Cumberland, Maryland did not submit the PR29 Cash on Hand Quarterly Report for the first quarter fiscal year 2023 by the due date required by the Uniform Guidance. Cause: The City of Cumberland, Maryland’s Finance Department believed they could only file reports after a draw had been completed and since the City of Cumberland, Maryland had not submitted a draw, they delayed filing their required reports. Effect: The City of Cumberland, Maryland 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 that the City of Cumberland, Maryland’s first quarter PR29 report that was due on October 30, 2022 for the period of July 1, 2022 through September 30, 2022 was submitted on December 14, 2022. Auditors’ Recommendations: We recommend that the City of Cumberland, Maryland communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the federal agencies 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: The City understands the recommendation and has enhanced its procedures for the Community Development Block Grant Program to specifically state the requirement for the PR29 Cash on Hand Quarterly Report to be submitted no later than 30 days following each completed quarter and communicated this requirement to the City's finance department and Senior Community Development Specialist. These recommendations were implemented in fiscal year 2024. Identification of a Repeat Finding: This finding was not a finding in FY 22.
Finding 2023-001
Federal Program: Department of Housing and Urban Development; CDBG Cluster; Federal Assistance Listing #14.218 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 City of Cumberland, Maryland did not submit the PR29 Cash on Hand Quarterly Report for the first quarter fiscal year 2023 by the due date required by the Uniform Guidance. Cause: The City of Cumberland, Maryland’s Finance Department believed they could only file reports after a draw had been completed and since the City of Cumberland, Maryland had not submitted a draw, they delayed filing their required reports. Effect: The City of Cumberland, Maryland 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 that the City of Cumberland, Maryland’s first quarter PR29 report that was due on October 30, 2022 for the period of July 1, 2022 through September 30, 2022 was submitted on December 14, 2022. Auditors’ Recommendations: We recommend that the City of Cumberland, Maryland communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the federal agencies 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: The City understands the recommendation and has enhanced its procedures for the Community Development Block Grant Program to specifically state the requirement for the PR29 Cash on Hand Quarterly Report to be submitted no later than 30 days following each completed quarter and communicated this requirement to the City's finance department and Senior Community Development Specialist. These recommendations were implemented in fiscal year 2024. Identification of a Repeat Finding: This finding was not a finding in FY 22.
Finding 2023-001
Federal Program: Department of Housing and Urban Development; CDBG Cluster; Federal Assistance Listing #14.218 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 City of Cumberland, Maryland did not submit the PR29 Cash on Hand Quarterly Report for the first quarter fiscal year 2023 by the due date required by the Uniform Guidance. Cause: The City of Cumberland, Maryland’s Finance Department believed they could only file reports after a draw had been completed and since the City of Cumberland, Maryland had not submitted a draw, they delayed filing their required reports. Effect: The City of Cumberland, Maryland 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 that the City of Cumberland, Maryland’s first quarter PR29 report that was due on October 30, 2022 for the period of July 1, 2022 through September 30, 2022 was submitted on December 14, 2022. Auditors’ Recommendations: We recommend that the City of Cumberland, Maryland communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the federal agencies 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: The City understands the recommendation and has enhanced its procedures for the Community Development Block Grant Program to specifically state the requirement for the PR29 Cash on Hand Quarterly Report to be submitted no later than 30 days following each completed quarter and communicated this requirement to the City's finance department and Senior Community Development Specialist. These recommendations were implemented in fiscal year 2024. Identification of a Repeat Finding: This finding was not a finding in FY 22.
Finding 2023-001
Federal Program: Department of Housing and Urban Development; CDBG Cluster; Federal Assistance Listing #14.218 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 City of Cumberland, Maryland did not submit the PR29 Cash on Hand Quarterly Report for the first quarter fiscal year 2023 by the due date required by the Uniform Guidance. Cause: The City of Cumberland, Maryland’s Finance Department believed they could only file reports after a draw had been completed and since the City of Cumberland, Maryland had not submitted a draw, they delayed filing their required reports. Effect: The City of Cumberland, Maryland 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 that the City of Cumberland, Maryland’s first quarter PR29 report that was due on October 30, 2022 for the period of July 1, 2022 through September 30, 2022 was submitted on December 14, 2022. Auditors’ Recommendations: We recommend that the City of Cumberland, Maryland communicate effectively with all staff to emphasize the importance of promptly submitting financial information to the federal agencies 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: The City understands the recommendation and has enhanced its procedures for the Community Development Block Grant Program to specifically state the requirement for the PR29 Cash on Hand Quarterly Report to be submitted no later than 30 days following each completed quarter and communicated this requirement to the City's finance department and Senior Community Development Specialist. These recommendations were implemented in fiscal year 2024. Identification of a Repeat Finding: This finding was not a finding in FY 22.