Finding Text
Federal Agency: Department of Housing and Urban Development Federal Program: 14.231 Emergency Solutions Grant Program Pass-Through Entity: Maryland Department of Housing and Community Development Identification Number: E-20-DW-24-0001 Requirement: Special Tests and Provisions Type of Finding: Material weakness in internal control over major program; Noncompliance Criteria: The grant recipient must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: Payments were not made to subrecipients within 30 days of the request date. Cause: Program management does not possess adequate knowledge or monitoring procedures to ensure timely processing and payment of subrecipient invoices. Effect: Failure to make timely payments to subrecipients in accordance with federal requirements could result in a loss of funding. Context: Of the 32 subrecipient payments reviewed, 13 were not made within the required 30-day period. The delays ranged from a minimum of 5 business days to a maximum of 84 days. Recommendation: The Emergency Solutions program staff should carefully monitor subrecipient request dates and communicate regularly with the finance department to ensure timely payment of the requests. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.