FAC Explorer

Finding 394928 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-04-26
Audit: 304784
Organization: Prince George's County, MD (MD)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Prince George’s County failed to report any required subawards of $30,000 or more to the FSRS, resulting in a material weakness in compliance.
  • Impacted Requirements: The County did not meet the reporting obligations under the Federal Funding Accountability and Transparency Act (FFATA), affecting eight subawards totaling $890,051.
  • Recommended Follow-Up: The County should establish effective internal controls and procedures to ensure timely and accurate FFATA reporting for all subawards.

Finding Text

Reference Number: 2023-001 Prior Year Finding: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Award Number and Year: B-19-UC-24-0002 (7/31/2019 – 9/1/2027), B-20-UC-24-0002 (8/17/2020 – 9/1/2028), B-21-UC-24-0002 (10/27/2021 – 9/1/2029), B-22-UC-24-002 (7/1/2022 – 9/1/2029) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct) recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Reports must be filed in FSRS by the end of the month following the month in which the prime recipient awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below $30,000, the award continues to be subject to FFATA reporting requirements. The following key data elements must be reported: Subawardee Name and Data Universal Numbering System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards; and the public does not have access to this information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.) Control: 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 comply 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: Prince George’s County (the County) did not report required subaward information to FSRS for first-tier subawards of $30,000 or more. Context: Zero of eight subawards selected for testing were reported to FSRS. Total subawards tested were $890,051, and $0 was reported as required by FFATA requirements. Transactions Tested Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements 8 8 0 0 0 Dollar Amount of Tested Transactions Subaward not reported Report not timely Subaward amount incorrect Subaward missing key elements $890,051 $890,051 $0 $0 $0 Cause: The County’s policies and procedures were not sufficient to ensure that required subaward information was reported to FSRS. Internal controls did not prevent or detect the errors. Effect: Subawards were not reported to FSRS in accordance with FFATA requirements. Questioned costs: None noted. Recommendation: We recommend that the County develop internal controls and procedures to ensure that FFATA reporting requirements are met. We further recommend the County develop controls and procedures to ensure that all required subawards are reported accurately and timely to FSRS. Views of responsible officials:

Corrective Action Plan

Reference Number: 2023-001 Prior Year Finding: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Community Development Block Grants/Entitlement Grants Assistance Listing Number: 14.218 Award Number and Year: B-19-UC-24-0002 (7/31/2019 – 9/1/2027), B-20-UC-24- 0002 (8/17/2020 – 9/1/2028), B-21-UC-24-0002 (10/27/2021 – 9/1/2029), B-22-UC-24-002 (7/1/2022 – 9/1/2029) Compliance Requirement: Reporting – Federal Funding Accountability and Transparency Act (FFATA) Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Recommendation: We recommend that the County develop internal controls and procedures to ensure that FFATA reporting requirements are met. We further recommend the County develop controls and procedures to ensure that all required subawards are reported accurately and timely to FSRS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: DHCD will review and update procedures to ensure the department is in full compliance with the FFATA guidelines. In addition, DHCD will review all remaining balances from prior year grant awards and record the awards in FSRS. Name(s) of the contact person(s) responsible for corrective action: Edren Lewis, Chief Budget, Accounting and Loan Servicing Manager Planned completion date for corrective action plan: June 30, 2024 Any questions concerning the findings or corrective action plan can be directed to Aspasia Xypolia, Director, DHCD at 301-883- 5531.

Categories

Reporting Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 394929 2023-001
    Material Weakness Repeat
  • 394930 2023-001
    Material Weakness Repeat
  • 394931 2023-001
    Material Weakness Repeat
  • 394932 2023-002
    Material Weakness
  • 394933 2023-002
    Material Weakness
  • 394934 2023-002
    Material Weakness
  • 394935 2023-003
    Material Weakness
  • 394936 2023-003
    Material Weakness
  • 394937 2023-003
    Material Weakness
  • 971370 2023-001
    Material Weakness Repeat
  • 971371 2023-001
    Material Weakness Repeat
  • 971372 2023-001
    Material Weakness Repeat
  • 971373 2023-001
    Material Weakness Repeat
  • 971374 2023-002
    Material Weakness
  • 971375 2023-002
    Material Weakness
  • 971376 2023-002
    Material Weakness
  • 971377 2023-003
    Material Weakness
  • 971378 2023-003
    Material Weakness
  • 971379 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $24.77M
21.023 Emergency Rental Assistance Program $12.10M
21.019 Coronavirus Relief Fund $7.33M
20.507 Federal Transit_formula Grants $4.78M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $2.78M
93.495 Community Health Workers for Public Health Response and Resilient $2.49M
93.435 Innovative State and Local Public Health Strategies to Prevent and Manage Diabetes and Heart Disease and Stroke- $2.40M
97.091 Homeland Security Biowatch Program $2.27M
16.606 State Criminal Alien Assistance Program $1.71M
93.493 Congressional Directives $1.46M
93.137 Community Programs to Improve Minority Health Grant Program $1.38M
93.940 Hiv Prevention Activities_health Department Based $1.24M
93.568 Low-Income Home Energy Assistance $1.20M
93.917 Hiv Care Formula Grants $963,203
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $935,174
14.218 Community Development Block Grants/entitlement Grants $903,428
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $787,699
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $762,199
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $586,663
93.958 Block Grants for Community Mental Health Services $512,457
16.609 Project Safe Neighborhoods $475,191
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $424,820
12.003 Community Economic Adjustment Assistance for Responding to Threats to the Resilience of A Military Installation (b) $420,800
93.788 Opioid Str $395,635
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $361,184
97.057 Intercity Bus Security Grants $340,881
93.563 Child Support Enforcement $337,224
93.069 Public Health Emergency Preparedness $329,615
16.585 Drug Court Discretionary Grant Program $302,338
17.235 Senior Community Service Employment Program $285,902
16.741 Dna Backlog Reduction Program $260,000
94.011 Foster Grandparent Program $240,620
93.959 Block Grants for Prevention and Treatment of Substance Abuse $226,175
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $195,082
14.248 Community Development Block Grants_section 108 Loan Guarantees $173,203
97.067 Homeland Security Grant Program $166,292
14.267 Continuum of Care Program $164,276
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $161,505
93.778 Medical Assistance Program $156,920
20.509 Formula Grants for Rural Areas and Tribal Transit Program $156,226
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $152,291
93.505 Affordable Care Act (aca) Maternal, Infant, and Early Childhood Home Visiting Program $120,573
93.052 National Family Caregiver Support, Title Iii, Part E $117,546
97.042 Emergency Management Performance Grants $111,477
93.150 Projects for Assistance in Transition From Homelessness (path) $106,652
93.136 Injury Prevention and Control Research and State and Community Based Programs $100,650
93.994 Maternal and Child Health Services Block Grant to the States $83,499
16.575 Crime Victim Assistance $81,181
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $79,323
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $70,964
16.710 Public Safety Partnership and Community Policing Grants $63,166
93.268 Immunization Cooperative Agreements $62,759
16.746 Capital Case Litigation Initiative $49,536
97.049 Presidential Declared Disaster Assistance - Disaster Housing Operations for Individuals and Households $48,827
16.758 Improving the Investigation and Prosecution of Child Abuse and the Regional and Local Children's Advocacy Centers $46,308
16.738 Edward Byrne Memorial Justice Assistance Grant Program $44,190
93.324 State Health Insurance Assistance Program $40,921
16.588 Violence Against Women Formula Grants $39,381
93.470 Alzheimer's Disease Program Initiative (adpi) $34,287
93.053 Nutrition Services Incentive Program $30,944
16.593 Residential Substance Abuse Treatment for State Prisoners $29,153
21.027 Coronavirus State and Local Fiscal Recovery Funds $24,989
16.036 Prosecuting Cold Cases Using Dna $23,945
20.205 Highway Planning and Construction $23,701
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $22,365
20.505 Highway Planning and Construction $16,156
16.034 Coronavirus Emergency Supplemental Funding Program $11,816
15.622 Sportfishing and Boating Safety Act $11,523
20.600 State and Community Highway Safety $9,500
16.737 Gang Resistance Education and Training $8,153
97.083 Staffing for Adequate Fire and Emergency Response (safer) $5,000
94.002 Retired and Senior Volunteer Program $4,218
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $2,957
97.024 Emergency Food and Shelter National Board Program $563
93.770 Medicare_prescription Drug Coverage $-39
93.558 Temporary Assistance for Needy Families $-482
93.767 Children's Health Insurance Program $-78,542
14.231 Emergency Solutions Grant Program $-191,161