FAC Explorer

Finding 1025932 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 313273
Organization: Baltimore County, Maryland (MD)
Auditor: Cliftonlarsonallen

AI Summary

  • Core Issue: Significant errors were found in the Schedule of Expenditures of Federal Awards (SEFA), including underreporting of funds and incorrect subrecipient expenditures.
  • Impacted Requirements: Compliance with 2 CFR 200 Section 510(b) for accurate reporting of federal awards and maintaining effective internal controls as per 2 CFR 200.303(a).
  • Recommended Follow-Up: Improve SEFA compilation processes and enhance review procedures to ensure all expenditures are accurately reported and reconciled with the accounting system.

Finding Text

Reference Number: 2022-001Federal Agency: U.S. Department of LaborU.S. Department of TreasuryU.S. Department of Health and Human ServicesFederal Program: WIOA ClusterCOVID-19-Coronavirus State and Local Fiscal Recovery FundsAging ClusterProjects for Assistance in Transition from Homelessness (PATH)Block Grants for Community Mental Health ServicesAssistance Listing Number: 17.258/17.259/17.278, 21.027, 93.044/93.045/93.053, 93.150, 93.958Pass-through Agency: Maryland Department of Labor, Maryland Department of Health Maryland Department of AgingPass-through Number: P26-BCO-PY22-A, P26-BCO-PY21-A, P06-BCO-FY20-A,P26-BCO-PY21-Y, P16-BCO-PY20-Y, P16-BCO-FY21-D,P16-BCO-PY20-D, P26-BCO-PY21-D, P16-BCO-FY21-DAAA-3-24-004, 2010MDSSC6-00, 2101MDCMC6,2101MDHDC6-00, ST-2505-004, MH184OTH, MH222OTHCompliance Requirement: Reporting: Schedule of Expenditures of Federal AwardsType of Finding: Significant Deficiency in Internal Control Over Compliance, Other MattersCriteria or specific requirement:Compliance: Per 2 CFR 200 Section 510(b), the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with Section 200.502. The schedule must list individual Federal programs by Federal agency and provide total Federal awards expended for each individual Federal program and the Assistance Listings Number or other identifying number when the Assistance Listings information is not available. It must also include the total amount provided to subrecipients from each Federal program. Per Section 502(g), Federal non-cash assistance, such as free rent, food commodities, donated property, or donated surplus property, must be valued at fair market value at the time of receipt or the assessed value provided by the Federal agency.Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and 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 statutes, regulations, and the terms and conditions of the Federal award. 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:Errors were detected in the Schedule of Expenditures of Federal Awards (SEFA). Errors included:? Under the WIOA Cluster, the County was unable to reconcile the amount reported on the draw downs to the amount reported in the general ledger to ensure expenditures were accurately reported on the SEFA.? The original SEFA underreported the Coronavirus State and Local Fiscal Recovery Funds grant by $1.2 million.? During our testing of payroll in the Aging Cluster, it was noted that 2 of 40 expenditures tested totaling $615 were incorrectly reported on the FY 2022 SEFA. They should have been reported on the FY 2021 SEFA.? Incorrect subrecipients expenditures were reported on the SEFA as follows:o Emergency Rental Assistance Program ? the amount of subrecipient expenditures were incorrectly reported.o Projects for Assistance in Transition from Homelessness (PATH) and Block Grant for Community Mental Health Services ? the subrecipient amount reported on the SEFA exceeded the total expenditures.Cause:Turnover in the grant accountant position resulted in other County staff completing the schedule of expenditures of federal awards, who were not involved in the grant process throughout the year.Effect:Federal expenditures were incorrectly reported on the SEFA , which were subsequently corrected.Questioned Costs:UndeterminedRecommendation:We recommend that the County improve its SEFA compilation process to ensure that program expenditures reported on the County?s SEFA are complete and accurate. Procedures and controls should include a process to identify programs that are new to the County and ensure they are properly reported on the SEFA.We further recommend that County?s Office of Budget and Finance (OBF) work with the County?s agencies and departments to review and update their SEFA review and confirmation procedures to ensure that expenditure information they submit to OBF is accurate, that it includes all programs expended, and ties to detail expenditure transactions in the County?s accounting system. They should also review and enhance procedures and controls to ensure that subrecipient payments are accurately reported.Views of Responsible Officials:See separate Correction Action Plan related to this finding.

Categories

Reporting

Other Findings in this Audit

  • 449481 2022-002
    Material Weakness Repeat
  • 449482 2022-006
    Significant Deficiency
  • 449483 2022-003
    Significant Deficiency
  • 449484 2022-003
    Significant Deficiency
  • 449485 2022-006
    Significant Deficiency
  • 449486 2022-002
    Significant Deficiency
  • 449487 2022-001
    Significant Deficiency
  • 449488 2022-001
    Significant Deficiency
  • 449489 2022-001
    Significant Deficiency
  • 449490 2022-001
    Significant Deficiency
  • 449491 2022-001
    Significant Deficiency
  • 449492 2022-001
    Significant Deficiency
  • 449493 2022-001
    Significant Deficiency
  • 449494 2022-004
    Material Weakness
  • 449495 2022-007
    Significant Deficiency
  • 449496 2022-001
    Significant Deficiency
  • 449497 2022-008
    Significant Deficiency
  • 449498 2022-005
    Significant Deficiency
  • 449499 2022-005
    Significant Deficiency
  • 449500 2022-008
    Significant Deficiency
  • 449501 2022-001
    Significant Deficiency
  • 449502 2022-001
    Significant Deficiency
  • 449503 2022-001
    Significant Deficiency
  • 449504 2022-001
    Significant Deficiency
  • 449505 2022-001
    Significant Deficiency
  • 449506 2022-001
    Significant Deficiency
  • 449507 2022-001
    Significant Deficiency
  • 449508 2022-001
    Significant Deficiency
  • 449509 2022-001
    Significant Deficiency
  • 1025923 2022-002
    Material Weakness Repeat
  • 1025924 2022-006
    Significant Deficiency
  • 1025925 2022-003
    Significant Deficiency
  • 1025926 2022-003
    Significant Deficiency
  • 1025927 2022-006
    Significant Deficiency
  • 1025928 2022-002
    Significant Deficiency
  • 1025929 2022-001
    Significant Deficiency
  • 1025930 2022-001
    Significant Deficiency
  • 1025931 2022-001
    Significant Deficiency
  • 1025933 2022-001
    Significant Deficiency
  • 1025934 2022-001
    Significant Deficiency
  • 1025935 2022-001
    Significant Deficiency
  • 1025936 2022-004
    Material Weakness
  • 1025937 2022-007
    Significant Deficiency
  • 1025938 2022-001
    Significant Deficiency
  • 1025939 2022-008
    Significant Deficiency
  • 1025940 2022-005
    Significant Deficiency
  • 1025941 2022-005
    Significant Deficiency
  • 1025942 2022-008
    Significant Deficiency
  • 1025943 2022-001
    Significant Deficiency
  • 1025944 2022-001
    Significant Deficiency
  • 1025945 2022-001
    Significant Deficiency
  • 1025946 2022-001
    Significant Deficiency
  • 1025947 2022-001
    Significant Deficiency
  • 1025948 2022-001
    Significant Deficiency
  • 1025949 2022-001
    Significant Deficiency
  • 1025950 2022-001
    Significant Deficiency
  • 1025951 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $78.93M
21.023 Emergency Rental Assistance Program $43.03M
14.239 Home Investment Partnerships Program $32.79M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12.25M
21.019 Coronavirus Relief Fund $7.81M
14.231 Emergency Solutions Grant Program $2.15M
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $2.12M
14.218 Community Development Block Grants/entitlement Grants $2.10M
14.241 Housing Opportunities for Persons with Aids $1.82M
97.083 Staffing for Adequate Fire and Emergency Response (safer) $1.54M
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1.53M
93.558 Temporary Assistance for Needy Families $1.39M
17.259 Wia Youth Activities $1.32M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.27M
93.568 Low-Income Home Energy Assistance $1.05M
11.307 Economic Adjustment Assistance $1.05M
93.778 Medical Assistance Program $909,146
14.267 Continuum of Care Program $887,729
93.658 Foster Care_title IV-E $786,975
17.235 Senior Community Service Employment Program $686,520
93.069 Public Health Emergency Preparedness $549,190
97.067 Homeland Security Grant Program $509,781
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $500,993
10.551 Supplemental Nutrition Assistance Program $497,685
93.563 Child Support Enforcement $488,749
17.258 Wia Adult Program $437,248
97.042 Emergency Management Performance Grants $404,631
16.922 Equitable Sharing Program $388,308
93.268 Immunization Cooperative Agreements $384,974
93.958 Block Grants for Community Mental Health Services $378,367
21.016 Equitable Sharing $365,122
93.940 Hiv Prevention Activities_health Department Based $340,320
93.788 Opioid Str $326,394
16.710 Public Safety Partnership and Community Policing Grants $300,955
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $284,432
14.896 Family Self-Sufficiency Program $256,163
93.959 Block Grants for Prevention and Treatment of Substance Abuse $253,254
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $193,600
14.905 Lead Hazard Reduction Demonstration Grant Program $169,714
14.235 Supportive Housing Program $164,473
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $161,983
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $152,964
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $132,893
16.575 Crime Victim Assistance $127,449
93.767 Children's Health Insurance Program $125,756
17.270 Reintegration of Ex-Offenders $123,950
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $112,059
93.053 Nutrition Services Incentive Program $110,655
16.999 N/a $105,342
16.738 Edward Byrne Memorial Justice Assistance Grant Program $100,000
93.150 Projects for Assistance in Transition From Homelessness (path) $94,200
17.278 Wia Dislocated Worker Formula Grants $84,519
94.002 Retired and Senior Volunteer Program $65,623
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $63,648
93.914 Hiv Emergency Relief Project Grants $52,798
16.034 Coronavirus Emergency Supplemental Funding Program $45,000
84.181 Special Education-Grants for Infants and Families $41,738
93.071 Medicare Enrollment Assistance Program $39,756
16.607 Bulletproof Vest Partnership Program $32,305
93.590 Community-Based Child Abuse Prevention Grants $30,000
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $28,958
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $28,814
16.741 Dna Backlog Reduction Program $27,708
16.588 Violence Against Women Formula Grants $25,435
21.999 N/a $22,998
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $19,394
20.218 National Motor Carrier Safety $16,897
20.703 Interagency Hazardous Materials Public Sector Training and Planning Grants $15,836
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $13,088
97.039 Hazard Mitigation Grant $11,713
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $11,697
16.833 National Sexual Assault Kit Initiative $11,513
20.509 Formula Grants for Rural Areas and Tribal Transit Program $10,089
93.324 State Health Insurance Assistance Program $5,250
20.600 State and Community Highway Safety $5,200
93.994 Maternal and Child Health Services Block Grant to the States $4,284
17.277 Workforce Investment Act (wia) National Emergency Grants $3,882
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $3,839
97.044 Assistance to Firefighters Grant $3,684
93.052 National Family Caregiver Support, Title Iii, Part E $3,666
10.168 Farmers' Market and Local Food Promotion Program $1,518
93.043 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $1,200
93.917 Hiv Care Formula Grants $617
16.754 Harold Rogers Prescription Drug Monitoring Program $474