Finding 1086242 (2022-008)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-11-22
Audit: 329558
Organization: Dorchester County, Maryland (MD)
Auditor: Uhy LLP

AI Summary

  • Core Issue: The County did not provide documentation showing that monthly reports were reviewed and approved before submission to the grantor.
  • Impacted Requirements: This violates the requirement for effective internal controls as outlined in 2 CFR section 200.303(a).
  • Recommended Follow-Up: The County should enhance its internal controls and procedures to ensure proper documentation of report reviews and approvals.

Finding Text

Criteria: Internal 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 be in compliance 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: the County was unable to provide documentation to support review and approval of the monthly report required by the grantor. Cause: the County’s procedures and controls were not sufficient to ensure that reports were properly reviewed and approved before submission to the grantor. Questioned Costs: None Effect: failure to review and approve reports required by the grantor may result in erroneous reports being submitted to the grantor. Recommendation: We recommend the County review and enhance internal controls and procedures to ensure that the review and approval of the monthly report is documented. Identification of Repeat Finding: This is a first year finding. Views of Responsible Officials: management agrees with the finding.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 509797 2022-005
    Material Weakness
  • 509798 2022-006
    Material Weakness
  • 509799 2022-007
    Material Weakness
  • 509800 2022-008
    Material Weakness
  • 1086239 2022-005
    Material Weakness
  • 1086240 2022-006
    Material Weakness
  • 1086241 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $1.83M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.00M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $68,049
20.205 Highway Planning and Construction $58,824
11.419 Coastal Zone Management Administration Awards $55,000
16.034 Coronavirus Emergency Supplemental Funding Program $35,330
97.043 State Fire Training Systems Grants $32,498
20.509 Formula Grants for Rural Areas and Tribal Transit Program $21,333
11.429 Marine Sanctuary Program $13,288
21.019 Coronavirus Relief Fund $7,634