Finding 2086 (2022-003)

Federal agency: U.S. Department of Treasury Federal program title: Emergency Rental Assistance Program Federal Assistance Listing Number: 21.023 Pass-Through Entity: Baltimore County Award Period: May 1, 2021 – June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of internal controls. Uniform Grant Guidance requires compliance with the provisions of internal controls. 2 CFR section 200.303, states that recipients of federal funds are required to establish and maintain effective internal control over the Federal awards to provide reasonable assurance that the recipient of the Federal funds is in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Organization should have internal controls designed and effectively operating to ensure compliance with those provisions. Condition: We noted there was no review or approval of three of five reports tested. Questioned costs: None Context: Three of five reports tested were not reviewed by an individual other than the preparer. We noted that a review process was put in place beginning in April 2022. Cause: The policies and procedures surrounding reporting were not properly designed. Repeat Finding: No Effect: The lack of internal controls over reporting compliance requirements provides an opportunity for noncompliance. Recommendation: We recommend that the Organization implement the proper policies and procedures to ensure compliance with 2 CFR section 200.303. Views of responsible officials: There is no disagreement with the audit finding.