Finding 2024-007
Programs: All
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes; 2023-006
Auditee’s Corrective Action Plan:
The city’s legacy financial system did not collect data required for SEFA. Agencies had to provide most details manually a...
Finding 2024-007
Programs: All
Material Weakness over Schedule of Expenditures of Federal Awards (SEFA) Reporting
Repeat Finding: Yes; 2023-006
Auditee’s Corrective Action Plan:
The city’s legacy financial system did not collect data required for SEFA. Agencies had to provide most details manually and work between spreadsheets and multiple systems to input and track receipt grant awards and spend on personnel, supplies and services and sub-recipient awards related to grants. The steps to address this legacy finding have been phased and include the technology implementation, staff training and additional oversight.
As noted, the City implemented Workday, an Enterprise Resource Planning (ERP) system, across workstreams so that Financial Accounting, Grants, Procurement, Supplier Accounts, Banking, Payroll and Human Resources are all in one system. As with any ERP, an ongoing process of evaluation and updates are needed to continuously align workflow and business processes. This approach has led to continued improvement over the years as the grants management module is fully implemented in Workday. Since implementation, additional enhancements have been adopted and utilized with a robust workflow process for grant approval, grant budget tracking, and invoice scheduling. In addition to the technology adoption, an increase in citywide grants training and oversight has been implemented. The progress is detailed below:
• FY 23 represented the first year in the new system. To compile the SEFA, the City used a hybrid approach to leverage Workday and Agency provided data.
o There were some data accuracy challenges from data entry errors. To address those data entry challenges the award modification business process was improved post-implementation to add a GMO review and approval step of award modifications.
o As of May 2024, all award modifications now require centralized GMO review to verify data accuracy.
o Additional process changes in FY 23 included implementation of the requirement as part of the FY 24 budget preparation process that grant worktags must be created and budgeted for during the City’s annual budget process. The grant worktag creation process includes approvals at the agency program and fiscal levels, as well as at the Department of Finance level.
• In FY24 further Award Module enhancements were adopted to provide key new data points in Workday.
o Each grant award now includes information: Federal Assistance Listing Number (fna CFDA#), Passthrough Agencies & Passthrough Identifier.
DRAFT
CITY OF BALTIMORE
Corrective Action Plans
Year Ended June 30, 2024
146
Finding 2024-007 (continued)
Auditee’s Corrective Action Plan: (continued)
o Additionally, in FY 24, GMO, in collaboration with BAPS launched the Grants Workstream Training sessions. These monthly citywide virtual live trainings are on a variety of grant management related topics, averaging 60 attendees per session. Attendees are city agency grant managers and city agency fiscal staff.
• In FY 24 and FY 25 the topics covered included:
o FY 24 Grant Work tag Preparation
o FY 24 SEFA Preparation
o Grant Accounting Best Practices and Workday Billing
o Award Set-up Best Practice & Potential Pitfalls
o Extra Features in Workday (including reporting and how to set up award tasks and deadlines)
o Subrecipient Monitoring Best Practices
o Cost-reimbursable grant invoicing in Workday
o FY 25 SEFA preparation
o FY 26 Grant Work tag Preparation
o Grant Management Roles and Responsibilities
o Specific training on the SEFA, including information on understanding the importance of the SEFA, what information is included and how to review SEFA data, was conducted. Citywide training sessions were held in FY 24 and FY 25 to ensure that the reporting is understood by city agencies, with special emphasis on subrecipient payments being reported properly. The training schedule is ongoing and continuous.
• To improve SEFA reporting data, in FY 25 there is an emphasis on subrecipient set up and spending to ensure that functionality is refined to improve uniformity in subrecipient set up. GMO, in conjunction with BAPS, the Bureau of Procurement and city agencies will work to refine subrecipient set up, spending and monitoring, including improved reporting.
o GMO has hosted three subrecipient monitoring and management–related trainings since December 2024. Additionally, to improve subrecipient managing and monitoring, GMO modified the award setup business process in Workday to include verification of subaward status before final award setup approval. In FY 25, GMO provided training on how to setup subawards accurately in Workday. As discussed above, these trainings will be ongoing.
• Additionally, GMO and the BBMR will collaborate on a subaward dashboard to monitor subrecipient spending data in real time.
Contact Person:
Michael Moiseyev, Chief Financial Officer, Baltimore City
Completion Date:
FY26 3rd Quarter-
• Design and complete a grants management dashboard within Workday
• Ongoing and continuous - GMO will continue to conduct trainings on SEFA reporting and subrecipient management and reporting.