Finding 608530 (2022-004)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-08-30

AI Summary

  • Core Issue: SMTCCAC failed to provide necessary documentation for the review and approval of one transaction, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with 2 CFR section 200.303(a) is essential for effective internal control over federal awards.
  • Recommended Follow-Up: SMTCCAC should ensure proper documentation of expenditure reviews and approvals to mitigate the risk of unallowed costs.

Finding Text

Finding Reference: 2022-004 Federal Agency: Department of Treasury Compliance Requirement: Activities Allowed, Allowable Costs (Non-Payroll) Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Federal Program: 21.023 ? Emergency Rental Assistance Grant Award: ERAPI Charles County Condition/Context: SMTCCAC was unable to provide documentation to support review and approval for one (1) of the 40 transactions selected for testing. Criteria: Internal 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). Cause: SMTCCAC was unable to locate the Expenditure Request Form that demonstrates the approval of an invoice. Effect: The risk of unallowed costs increases due to lack of supervisor review and approval of expenditures charged to the program. Questioned Costs: None Recommendation: We recommend that SMTCCAC maintain the documentation of review and approval of expenditures charged to the federal award programs. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plans section.

Categories

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32083 2022-005
    Significant Deficiency
  • 32084 2022-006
    Material Weakness
  • 32085 2022-006
    Material Weakness
  • 32086 2022-002
    Significant Deficiency
  • 32087 2022-003
    Significant Deficiency
  • 32088 2022-004
    Significant Deficiency
  • 32089 2022-005
    Significant Deficiency
  • 608525 2022-005
    Significant Deficiency
  • 608526 2022-006
    Material Weakness
  • 608527 2022-006
    Material Weakness
  • 608528 2022-002
    Significant Deficiency
  • 608529 2022-003
    Significant Deficiency
  • 608531 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $2.80M
93.600 Head Start $2.64M
93.568 Low-Income Home Energy Assistance $2.12M
93.569 Community Services Block Grant $514,069
10.568 Emergency Food Assistance Program (administrative Costs) $148,805
14.241 Housing Opportunities for Persons with Aids $123,397
14.218 Community Development Block Grants/entitlement Grants $95,767
10.558 Child and Adult Care Food Program $62,547
21.027 Coronavirus State and Local Fiscal Recovery Funds $23,846