Finding Text
Finding Reference: 2024-005 – A. Activities Allowed or Unallowed; B. Allowable Costs/Cost Principles Federal Program Information Federal Agencies: Department of Treasury Awards: Assistance Listing 21.027 – COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Award Periods: July 1, 2023 – December 31, 2026 Description: Evidence of Review and Approval of the Reported Expenditures Criteria In accordance with Title 2 U.S. Code of Federal Regulations, Part 200.303, Internal controls, “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.” The major program Assistance Listing 21.027 includes two sub-vendor contracts between the granting agency, Department of Treasury and UMMS for the Baltimore County Public Health Pathways Healthcare Workforce Recovery Program and MONSE HVIP. Condition The Corporation did not have appropriately designed internal controls in place over the grant subawards related to review and approval of the expenditures that were included in the Baltimore County, Maryland submission and the Mayor's Office of Neighborhood Safety and Engagement submissions. Cause The Corporation did not retain sufficient evidence of the review and approval of the expenditures reported to Baltimore County, Maryland and the Mayor's Office of Neighborhood Safety and Engagement in the required submissions. Effect or potential effect The expenditures included in the Baltimore County, Maryland submission and the Mayor's Office of Neighborhood Safety and Engagement submissions could be unallowed costs, inaccurate or information reported may be incomplete or untimely. Questioned costs None. Identification of a repeat finding No. This is not a repeat finding. Context For the Baltimore County Public Health Pathways Healthcare Workforce Recovery Program subaward’s annual financial report submission to Baltimore County, Maryland, management did not retain documentation to evidence review and approval of the stipend expenditures requested for cash reimbursement. Audit procedures did not identify any unallowable costs when compared to the underlying supporting documentation of the expenditure. For the MONSE HVIP subaward’s monthly financial report submissions to the Mayor's Office of Neighborhood Safety and Engagement, management did not retain documentation to evidence review and approval of the fringe and indirect cost rates and expenditures requested for cash reimbursement. Audit procedures did not identify any unallowable costs when compared to the underlying supporting documentation of the expenditure. Recommendation Management should reassess the design of its controls to ensure documentation is retained that evidences the review and approval of the stipends, fringe and indirect cost rates and the expenditures submitted to the Department of Treasury for reimbursement. View of responsible officials There is no disagreement with the audit finding.