Finding Text
Period of Performance Federal Agency: U.S. Department of Health and Human Services Operation of a Child Care Resource Center – Baltimore, Harford and Cecil Counties; Professional Development/Quality (688) Specialized Training for Caregivers and Child Care Providers (707) Operation of a Child Care Resource Center - Baltimore, Harford and Cecil Counties; Professional Development/ Quality (788) Operation of a Child Care Resource Center - Baltimore, Harford and Cecil Counties; Infants and Toddlers (789) Assistance Listing Number: 93.575 Pass-Through Agencies: Maryland State Department of Education (707) Maryland Family Network (688, 788, 789) Pass-Through Numbers: 2201MDCCDD (688, 707) 2401MDCCDD (788, 789) Award Periods: July 1, 2023 – September 30, 2024 (688) August 15, 2022 – June 30, 2025 (707) July 1, 2024 – June 30, 2025 (788, 789) Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Recipients of federal funds are required to establish and maintain effective internal controls over federal funds received, per 2 CFR section 200.303. Additionally, charges must be incurred during the approved period of performance, per 2 CFR 200.309. Condition: The Organization did not maintain evidence to support approval of payroll allocation journal entries. Additionally, one transaction did not occur within the period of performance. Context: Auditors tested five payroll journal entry allocations out of a total sample of 75 period of performance transactions, and all lacked evidence of appropriate approval to support that the disbursements were recorded within the proper period of performance. Additionally, one out of 75 transactions did not occur within the period of performance. Questioned Costs: None Cause: Internal controls over the approval of payroll journal entries and general disbursements were not adequately designed and implemented to ensure supporting documentation was maintained. Effect: The absence of effective internal controls over period of performance increases the risk of noncompliance with federal award requirements and the potential for errors. Repeat Finding: Yes; prior year finding 2024-004 Recommendation: We recommend that the Organization design, implement, and monitor effective internal controls over credit card disbursements and maintain appropriate documentation evidencing review and approval to ensure compliance with period of performance requirements. Views of Responsible Officials of the Auditee: There is no disagreement with the audit finding.