Finding Text
2024-002
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Federal Award Identification
Number and Year: None
Pass-Through Agency: Maryland State Department of Education
Pass-Through Number: 211837-01
Award Period: 3/3/2021 – 12/31/2024
Type of Finding: Significant Deficiency in Internal Control over
Compliance
Criteria or Specific Requirement:
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 the 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/Context:
The Board is required to submit monthly Financial Status Reports (FSR) to the Maryland State
Department of Education (MSDE). MSDE utilizes these reports as reimbursement requests and
subsequently submits payment to the Board based on reported expenditures. For one of four monthly
FSR selected for testing, the August 2023 report, the Board was unable to provide documentation that
it had reviewed and approved the report prior to submission to MSDE.
Questioned Costs:
There are no questioned costs related to this finding as the FSR was properly supported by underlying
documentation of the associated expenditures.
Cause:
The Board did not have sufficient policies and procedures over internal controls to maintain evidence of
review and approval of the FSR reports until November 2023.
Effect:
The lack of a formal review and approval process could result in inaccurate amounts reported and
reimbursed for the Federal programs.
Repeat Finding: NoRecommendation:
We recommend that the Board continue with established policies and procedures implemented in
November 2023 to ensure that documentation supporting the Board’s review and approval of the
monthly FSR reimbursement requests are retained for audit purposes.
Views of responsible officials:
There is no disagreement with the finding.