Finding 1205414 (2025-002)

Material Weakness Repeat Finding
Requirement
CL
Questioned Costs
-
Year
2025
Accepted
2026-03-31

AI Summary

  • Core Issue: The Corporation lacks proper internal controls for reviewing and approving expenditures related to federal grants from DOJ and DHHS.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations, Part 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Management should improve control designs to ensure documentation of review and approval for all expenditures submitted for reimbursement.

Finding Text

Finding Reference: 2025-002 – C. Cash Management; L. Reporting Federal Program Information Federal Agencies: Department of Health and Human Services Department of Justice Awards: Assistance Listing 93.078 – Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Assistance Listing 16.753 – Congressionally Recommended Awards Award Periods: September 30, 2023 – September 29, 2025 July 1, 2024 – September 30, 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 ALN 16.753 includes two sub-vendor contracts between the granting agency, Department of Justice (DOJ) and UMMS for the University of Maryland Medical Center (UMMC) Byrne Trauma Clinic and the University of Maryland Capital Region Medical Center (UMCAP) Byrne Discretionary Community. The major program ALN 93.078 includes two sub-vendor contracts between the granting agency, Department of Health and Human Services (DHHS) and UMMS for the ASPR Mission Zero. 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 DOJ and DHHS submissions. Cause The Corporation did not retain sufficient evidence of the review and approval of the expenditures reported to the DOJ or DHHS in the required submissions for cash reimbursement and reporting. Effect or potential effect The expenditures included in the DOJ or DHHS submissions could be 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 major program ALN 16.753 quarterly cash reimbursement, quarterly financial report and semi-annual progress report submissions, management did not retain documentation to evidence review and approval of the submitted reports and 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 major program ALN 93.078 annual cash reimbursement and financial report, management did not retain documentation to evidence review and approval of the submitted reports 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 expenditures submitted to the DOJ and DHHS for reimbursement. View of responsible officials There is no disagreement with the audit finding.

Corrective Action Plan

C. Cash Management; L. Reporting Evidence of Review and Approval of the Reported Expenditures Assistance Listing Assistance Listing 93.078 – Strengthening Emergency Care Delivery in the United States Healthcare System through Health Information and Promotion Assistance Listing 16.753 – Congressionally Recommended Awards Federal Agency: Department of Health and Human Services Department of Justice Recommendation: Management should reassess the design of its controls to ensure documentation is retained that evidences the review and approval of expenditures submitted to the DOJ and DHHS for reimbursement. Explanation of disagreement with audit finding: There is no disagreement with the finding and recommendation. Action planned/taken in response to finding: The Corporation established a centralized UMMS Office for Research and Sponsored Programs Administration (ORSPA) department in December 2025. ORSPA and Corporate Financial Reporting are developing standard operating procedures and policies for the required review and reconciliation of grant expenditures per the accounting system to the financial submissions to the granting agency, including requirements for maintaining evidence of the review(s). A shared central repository for financial submissions was created. For each grant, this repository includes the financial submission and evidence of review and approval of the financial report submissions. The ORSPA and Corporate Financial Reporting will monitor the repository and work with grant managers to ensure evidence of financial submission review and approval is maintained. Anticipated Completion Date – June 30, 2027 Name(s) of the contact person(s) responsible for corrective action: Jeff Chadwick, Financial Reporting Director, jeff.chadwick@umm.edu

Categories

Allowable Costs / Cost Principles Cash Management Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1205412 2025-001
    Material Weakness Repeat
  • 1205413 2025-002
    Material Weakness Repeat
  • 1205415 2025-003
    Material Weakness Repeat
  • 1205416 2025-003
    Material Weakness Repeat
  • 1205417 2025-004
    Material Weakness Repeat
  • 1205418 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $290,507
93.078 STRENGTHENING EMERGENCY CARE DELIVERY IN THE UNITED STATES HEALTHCARE SYSTEM THROUGH HEALTH INFORMATION AND PROMOTION $120,218
16.320 SERVICES FOR TRAFFICKING VICTIMS $108,682
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $101,034
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $86,587
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $83,136
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $72,945
16.017 SEXUAL ASSAULT SERVICES FORMULA PROGRAM $47,000
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND OTHER SUBSTANCES USE PROGRAM $46,275
66.466 GEOGRAPHIC PROGRAMS - CHESAPEAKE BAY PROGRAM $29,722
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $24,681
93.945 Assistance Programs for Chronic Disease Prevention and Control $2,000