Finding Text
Federal Agency: Department of Health and Human Services Federal Program: 93.568 Low-Income Home Energy Assistance Pass-Through Entity: Maryland Department of Human Services Identification Number: FIA/OHEP/22-001 Requirement: Period of Performance Type of Finding: Material weakness in internal control over major program; Noncompliance Criteria: In accordance with the terms and conditions of the grant agreement, administrative costs charged to the grant must relate to allowable activities incurred during the grant period of July 1, 2021 through June 30, 2023. Condition: Administrative costs were charged to the grant outside the grant period. Cause: Management has not established or implemented sufficient internal controls to ensure that expenditures charged to the grant are limited to those incurred within the allowable grant period. Effect: Inclusion of costs outside the allowable grant period in reports to the federal government may lead to federal inquiries of those charged with governance. Known Questioned Costs: Known questioned costs related to our identified error total $43,878. Context: Common area maintenance (CAM) fees related to the rent of the program building for the period August 2017 through June 2021 were charged to the grant during the year ended June 30, 2023. Recommendation: Before using federal grant funds to pay for expenditures, program staff should ensure that costs are within the period of performance of the grant. We recommend notifying the pass-through entity of this error and returning the funds received for ineligible expenses. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.