Finding Text
Finding Reference Number: 2025-002 Name of Federal Agency: U.S. Department of Treasury Name of Pass-through Entity: Howard County Government Program Title: Coronavirus State and Local Fiscal Recovery Fund Federal Award No.: 02-11-0-D000-0237 Assistance Listing Number: 21.027 Federal Award Year: 2024-2025 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria: Non-Federal entities are required to comply with the terms of the grant agreement. This includes preparing and submitting all required reports in a timely manner. 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: during our fiscal year 2025 compliance audit, we noted that the Authority did not submit two out of the four quarterly detailed expense list per childcare provider report selected for testing. Context: The Authority is required to submit (4) quarterly project and expenditure report and (4) quarterly detailed expense list per childcare provider. While the quarterly project and expenditure reports were submitted timely, the authority did not prepare and submit the quarterly detailed expense list per childcare provider reports. Cause: The Authority did not have proper internal controls to ensure that all required reports were submitted timely to the grantor. Effect: As a result, the authority did not prepare and submit the quarterly detailed expense list per childcare provider reports timely. Identification as a Repeat Finding, if Applicable: No. Questioned Costs: None identified. Recommendation: We recommend the Authority evaluate its policies and procedures to ensure that it complies with the reporting requirements of the grant. Responsible Official: Controller Views of Responsible Official and Planned Corrective Action: Management concurs with the audit finding. See the accompanying management’s corrective action plan for planned corrective action.