FAC Explorer

Finding 478786 (2023-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-07-18
Audit: 315436
Organization: County of Commissioners of Calvert County, Maryland (MD)
Auditor: Sb & Company LLC

AI Summary

  • Issue: The County's financial close and reporting for FY 2023 was delayed due to inadequate internal controls over financial reporting.
  • Requirements Impacted: Compliance with Uniform Guidance and §200.510 was compromised, affecting the reliability of financial statements.
  • Follow-Up: Implement a detailed closing checklist with assigned responsibilities and deadlines to improve the efficiency and accuracy of year-end procedures.

Finding Text

Condition: The County’s financial close and reporting process was delayed for fiscal year 2023. During the audit, we identified audit adjustments that were subsequently corrected by management that affected receivables, accrued expenditures and the expenditure accounts. Criteria: In accordance with Uniform Guidance, the County must maintain an adequate system of internal controls over financial reporting to initiate, authorize, record, process and report financial data reliably in accordance with generally accepted accounting principles. Additionally, §200.510 requires the auditee to prepare financial statements that reflect its financial position, results of operations or change in net assets, and, where appropriate, cash flows for the fiscal year audited. Cause: The County did not have adequate internal controls over financial reporting in place to ensure the review and analysis of its financial statements on a timely basis. Effect: The delay in completing the financial close and reporting process could allow for misstatements, errors, and irregularities to go undetected. Also, accurate financial information may not have been available to make timely management decisions. Questioned Costs: None. Recommendation: We believe that the year-end closing procedures could be performed more quickly and accurately by developing a closing checklist that indicates who will perform each procedure and a deadline for each procedure. Included in the checklist needs to be a procedure in which each reconciled schedule is detail reviewed for accuracy and reasonableness. The timing of specific procedures could be coordinated with the timing of management’s or the auditor’s need for the information. The due dates should also be monitored to determine that they are being met.

Corrective Action Plan

Point of Contact (POC): the Deputy Director of Accounting (vacant) will oversee the corrective action plan with assistance from an Accountant III (Casey Waldron)  Resource Requirements: the main resources will be the Deputy Director of Accounting and an Accountant III. It is anticipated that the non-recurring milestones will take no more than 40 hours to complete.  Planned Milestones: o Create a tracker for balance sheet account reconciliations – completed 05/24 o Every June and July, send out reminders on transitioning to the new fiscal year while the prior fiscal year is being closed to ensure expenses/revenue are accounted for properly. o Staff complete monthly balance sheet account reconciliations by the 15th of the following month o As part of each balance sheet account reconciliation, staff will prepare a document for each account (by 08/24 and updated annually) that includes the following information:  Name/Title of account  General Ledger account number  Fund (if applicable)  Purpose  Types of transactions  Transaction flow o Tracker and reconciliations are discussed monthly at a meeting led by either POC or the Director of Finance (Bruce Miller), meetings will be held the week that includes the 15th, if possible o Create a checklist for a quarterly review of revenue and expenses by 10/24 o Using the above checklist, perform a quarterly review of the revenue and expense data for quarters 1 through 3 no later than 30 days after the end of the quarter.  Actual-to-budget comparison for expenses/revenue  Cost centers used with the wrong fund  Negative expense balances  Positive revenue balances  Adjustments for issues identified during the quarterly review will be posted prior to the next quarterly review Maryland Relay for Impaired Hearing or Speech: 1-800-735-2258 o Consolidate year-end checklists into a master checklist by 08/24. The checklist must include the following information:  Procedure to be performed  Where instructions for the procedure are located  Responsibility Party  Date Due  Date Completed  Reviewing Party  Date Due  Date Completed o Hold bi-weekly year-end status meetings starting the 2nd week in July through the issuance of the audited financial statements  Scheduled Completion Date: the target completion date for non-recurring milestones is 10/24. As part of the CAP, we will be implementing recurring milestones that will be completed within the timelines specified above.  Status Date: o The tracker for balance sheet account reconciliations was completed in 05/24. o Staff is working daily on account reconciliations for Fiscal Year (FY) 2024. o The June reminder regarding the end of FY 2024 and the start of FY 2025 was sent on 06/30/24.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 478787 2023-001
    Material Weakness
  • 478788 2023-001
    Material Weakness
  • 478789 2023-001
    Material Weakness
  • 478790 2023-001
    Material Weakness
  • 478791 2023-001
    Material Weakness
  • 478792 2023-001
    Material Weakness
  • 478793 2023-001
    Material Weakness
  • 478794 2023-001
    Material Weakness
  • 478795 2023-001
    Material Weakness
  • 478796 2023-001
    Material Weakness
  • 478797 2023-001
    Material Weakness
  • 478798 2023-001
    Material Weakness
  • 478799 2023-001
    Material Weakness
  • 478800 2023-001
    Material Weakness
  • 478801 2023-001
    Material Weakness
  • 478802 2023-001
    Material Weakness
  • 478803 2023-001
    Material Weakness
  • 478804 2023-001
    Material Weakness
  • 478805 2023-001
    Material Weakness
  • 478806 2023-001
    Material Weakness
  • 478807 2023-001
    Material Weakness
  • 478808 2023-001
    Material Weakness
  • 478809 2023-001
    Material Weakness
  • 478810 2023-001
    Material Weakness
  • 478811 2023-001
    Material Weakness
  • 478812 2023-001
    Material Weakness
  • 478813 2023-001
    Material Weakness
  • 478814 2023-001
    Material Weakness
  • 478815 2023-001
    Material Weakness
  • 478816 2023-001
    Material Weakness
  • 478817 2023-001
    Material Weakness
  • 478818 2023-001
    Material Weakness
  • 478819 2023-001
    Material Weakness
  • 478820 2023-001
    Material Weakness
  • 478821 2023-001
    Material Weakness
  • 478822 2023-001
    Material Weakness
  • 478823 2023-001
    Material Weakness
  • 478824 2023-001
    Material Weakness
  • 478825 2023-001
    Material Weakness
  • 478826 2023-001
    Material Weakness
  • 478827 2023-001
    Material Weakness
  • 478828 2023-001
    Material Weakness
  • 478829 2023-001
    Material Weakness
  • 478830 2023-001
    Material Weakness
  • 478831 2023-001
    Material Weakness
  • 478832 2023-001
    Material Weakness
  • 478833 2023-001
    Material Weakness
  • 478834 2023-001
    Material Weakness
  • 478835 2023-001
    Material Weakness
  • 478836 2023-001
    Material Weakness
  • 478837 2023-001
    Material Weakness
  • 478838 2023-001
    Material Weakness
  • 478839 2023-001
    Material Weakness
  • 478840 2023-001
    Material Weakness
  • 478841 2023-001
    Material Weakness
  • 478842 2023-001
    Material Weakness
  • 478843 2023-001
    Material Weakness
  • 478844 2023-001
    Material Weakness
  • 478845 2023-001
    Material Weakness
  • 478846 2023-001
    Material Weakness
  • 478847 2023-001
    Material Weakness
  • 478848 2023-001
    Material Weakness
  • 478849 2023-001
    Material Weakness
  • 478850 2023-001
    Material Weakness
  • 478851 2023-001
    Material Weakness
  • 478852 2023-001
    Material Weakness
  • 478853 2023-001
    Material Weakness
  • 478854 2023-001
    Material Weakness
  • 478855 2023-001
    Material Weakness
  • 478856 2023-001
    Material Weakness
  • 1055228 2023-001
    Material Weakness
  • 1055229 2023-001
    Material Weakness
  • 1055230 2023-001
    Material Weakness
  • 1055231 2023-001
    Material Weakness
  • 1055232 2023-001
    Material Weakness
  • 1055233 2023-001
    Material Weakness
  • 1055234 2023-001
    Material Weakness
  • 1055235 2023-001
    Material Weakness
  • 1055236 2023-001
    Material Weakness
  • 1055237 2023-001
    Material Weakness
  • 1055238 2023-001
    Material Weakness
  • 1055239 2023-001
    Material Weakness
  • 1055240 2023-001
    Material Weakness
  • 1055241 2023-001
    Material Weakness
  • 1055242 2023-001
    Material Weakness
  • 1055243 2023-001
    Material Weakness
  • 1055244 2023-001
    Material Weakness
  • 1055245 2023-001
    Material Weakness
  • 1055246 2023-001
    Material Weakness
  • 1055247 2023-001
    Material Weakness
  • 1055248 2023-001
    Material Weakness
  • 1055249 2023-001
    Material Weakness
  • 1055250 2023-001
    Material Weakness
  • 1055251 2023-001
    Material Weakness
  • 1055252 2023-001
    Material Weakness
  • 1055253 2023-001
    Material Weakness
  • 1055254 2023-001
    Material Weakness
  • 1055255 2023-001
    Material Weakness
  • 1055256 2023-001
    Material Weakness
  • 1055257 2023-001
    Material Weakness
  • 1055258 2023-001
    Material Weakness
  • 1055259 2023-001
    Material Weakness
  • 1055260 2023-001
    Material Weakness
  • 1055261 2023-001
    Material Weakness
  • 1055262 2023-001
    Material Weakness
  • 1055263 2023-001
    Material Weakness
  • 1055264 2023-001
    Material Weakness
  • 1055265 2023-001
    Material Weakness
  • 1055266 2023-001
    Material Weakness
  • 1055267 2023-001
    Material Weakness
  • 1055268 2023-001
    Material Weakness
  • 1055269 2023-001
    Material Weakness
  • 1055270 2023-001
    Material Weakness
  • 1055271 2023-001
    Material Weakness
  • 1055272 2023-001
    Material Weakness
  • 1055273 2023-001
    Material Weakness
  • 1055274 2023-001
    Material Weakness
  • 1055275 2023-001
    Material Weakness
  • 1055276 2023-001
    Material Weakness
  • 1055277 2023-001
    Material Weakness
  • 1055278 2023-001
    Material Weakness
  • 1055279 2023-001
    Material Weakness
  • 1055280 2023-001
    Material Weakness
  • 1055281 2023-001
    Material Weakness
  • 1055282 2023-001
    Material Weakness
  • 1055283 2023-001
    Material Weakness
  • 1055284 2023-001
    Material Weakness
  • 1055285 2023-001
    Material Weakness
  • 1055286 2023-001
    Material Weakness
  • 1055287 2023-001
    Material Weakness
  • 1055288 2023-001
    Material Weakness
  • 1055289 2023-001
    Material Weakness
  • 1055290 2023-001
    Material Weakness
  • 1055291 2023-001
    Material Weakness
  • 1055292 2023-001
    Material Weakness
  • 1055293 2023-001
    Material Weakness
  • 1055294 2023-001
    Material Weakness
  • 1055295 2023-001
    Material Weakness
  • 1055296 2023-001
    Material Weakness
  • 1055297 2023-001
    Material Weakness
  • 1055298 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid -19 - American Rescue Plan Act $5.84M
21.023 Emergency Rental Assistance 2 $1.07M
93.563 Sheriff - Child Support Enforcement Ffy23 $715,785
97.036 Tropical Storm Isaias $655,330
97.044 Assistance to Firefighters Grant Fy20 $506,438
20.507 Covid -19 - Cares Act Transportation Rural Public Transportation $328,921
20.507 Rural Public Transportation $320,804
93.563 State's Attorney - Non Support Grant Ffy23 $314,533
14.228 Maryland Community Development Block Grant End Hunger Warehouse $307,729
14.228 Cares Act Funding Phase 2 $270,078
20.509 Transportation Arpa 5311 $250,474
93.563 Sheriff - Child Support Enforcement Ffy22 $233,790
20.509 5311 Operating Rural Public Transportation Crrsaa $174,620
97.042 Emergency Management Program Grant 2022 $101,102
93.563 Family Magistrate - Child Support Ffy23 $98,383
93.563 State's Attorney - Non Support Grant Ffy22 $95,516
21.023 Emergency Rental Assistance 1 $88,100
97.039 Calvert County Elevation Project $84,440
93.045 Title C-1 Meals Ffy23 $71,241
93.778 Maryland Access Point $68,587
93.045 Title C-1 Meals Ffy22 $66,194
16.738 Calvert County Criminal Justice Collaboration $65,949
20.507 Transportation Arpa 5307 $64,529
97.083 Staffing for Adequate Fire and Emergency Response Grant Fy19 $49,768
93.044 Title Iiib Support Ffy23 $46,987
93.045 Title Iiic-2 Meals Ffy22 $34,302
20.507 Capital Equipment $32,781
93.563 Family Magistrate - Child Support Ffy22 $26,740
93.045 Title Iiic-2 Meals Ffy23 $25,072
93.052 Title Iiie Family Caregivers Ffy23 $24,872
45.310 Library Staff Development $19,800
93.778 Maryland Access Point Senior Rides $19,558
93.045 Title Iiic-2 Supplemental Funding for Nutrition Consolidated Appropriations Act 2021 $19,023
97.067 Homeland Security Ffy21 $18,216
93.044 Title Iiib Support Ffy22 $16,655
93.324 State Health Insurance Program 04/01/22-03/31/23 $14,537
93.053 Title Iiic-1 Meals Ffy23 Nsip $14,160
97.042 Emergency Management Program Grant- Arpa 2021 $10,487
93.053 Title Iiic-1 Meals Ffy22 Nsip $9,512
16.607 Bulletproof Vest $8,900
20.507 Rideshare Assistance $8,730
93.053 Title Iiic-2 Meals Ffy23 Nsip $7,972
20.616 Ccso Highway Safety Grant Ffy23 Impaired Driving $7,495
20.505 Calvert/st. Mary's Metropolitan Planning Organization $6,685
93.052 Title Iiie Family Caregivers Ffy22 $6,602
20.616 Ccso Highway Safety Grant Ffy22 Impaired Driving $6,560
93.043 Title Iiid Preventive Health & Medicated Mgmt Ffy23 $6,433
20.600 Ccso Highway Safety Grant Ffy23 Speed Enforcement $6,134
14.228 Cares Act Funding Phase 1 $5,850
93.048 Senior Medicare Patrol $5,515
97.067 Homeland Security Ffy22 $5,391
20.600 Ccso Highway Safety Grant Ffy23 Distracted Driving $3,836
95.001 Hidta $3,750
97.039 Calvert County Acquisition/demolition Project(2) $3,695
93.071 Medicare Improvements for Patients & Providers Act (mippa) $3,317
21.019 Office on Aging Vac5 $3,067
93.053 Title Iiic-2 Meals Ffy22 Nsip $2,701
15.904 Clg Education & Training Grant $2,261
97.049 Hazard Mitigation Plan $2,047
20.600 Ccso Highway Safety Grant Ffy22 Speed Enforcement $1,953
93.042 Title Vii Ombudsman Fye22 $1,330
93.043 Title Iiid Preventive Health & Medicated Mgmt Ffy22 $1,183
93.042 Cares Act Title Vii Ombudsman $1,000
93.042 Title Vii Ombudsman Fye23 $763
93.324 State Health Insurance Program 04/01/23-03/31/24 $701
93.044 Title Iiib Ombudsman Ffy22 $511
93.041 Title Vii Elderabuse Prevention Fye22 $437
93.044 Title Iiib Ombudsman Ffy23 $317
93.041 Title Vii Elderabuse Prevention Fye23 $274