THE PARENTS' PLACE OF MARYLAND, INC.

THE PARENTS? PLACE OF MARYLAND, INC. Schedule of Findings and Questioned Costs September 30, 2020 30 Section III ? Federal Awards Findings and Questioned Costs (continued) Finding: 2020-004 CFDA #/Federal Program 84.328 Special Education? Parent Training and Information Centers Pass-through Entity None ? Direct Award Federal Agency U.S. Department of Education Federal Award Number H328M150069 Award Year 2019 CFDA #/Federal Program 93.994 Maternal and Child Health Services Block Grant to the States Pass-through Entity Maryland Department of Health and Mental Hygiene Federal Agency U.S. Department of Health and Human Services Federal Award Number Unknown Award Year 2019 CFDA #/Federal Program 84.027 Special Education Grants to States Pass-through Entity Maryland State Department of Education Division of Special Education/Early Intervention Federal Agency U.S. Department of Education Federal Award Number H027A190035 Award Year 2019 Category of Finding Activities Allowed/Allowable Costs - Payroll Criteria 2 CFR Part 200 Section 200.430 states (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% compensated activities; (iv) Encompass both federally assisted and all other activities compensated by the non- Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity?s written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity; and THE PARENTS? PLACE OF MARYLAND, INC. Schedule of Findings and Questioned Costs September 30, 2020 31 Section III ? Federal Awards Findings and Questioned Costs (Continued) Finding: 2020-004 Criteria (continued) (vi) Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; etc. Condition and Context For our non-statistical sample of 43 timesheets tested, there was no evidence of review and electronic approval of 40 timesheets for the periods selected. PPMD does not consistently post employees time and effort to the general ledger based on actual time allocated to grants. Time was not properly allocated for 24 timesheets across the programs tested. In addition, although timesheets supported the overall time charged, there were no supporting documentation to agree the percentage of time allocation to the grant for these employees in which expenses were charged to and reimbursed by the grant. Cause Management did not review and approve timesheets to support allowable costs/cost principles. Effect Unallowable and inaccurate payroll expenditures could be charged to the federal programs. Questioned Costs Unknown Repeat of Prior Year Finding 2019-001: 84.027 Special Education Grants to States 2019-001: 84.328 Special Education Parent Information Centers Recommendation We recommend that the Organization implement a system of internal control that provides for an after the fact review of timesheet allocations to general ledger program allocations to ensure those charges are accurate, allowable and properly allocated. Adjustments, if any, should be made timely. The Organization should consider semiannual time and effort reconciliation of timesheet allocation to general ledger to reimbursement submissions to grantors. View of Responsible Official Refer to PPMD?s corrective action plan.

2020-004 Activities Allowed/Allowable Costs ? Payroll Rene Averitt-Sanzone, Executive Director PPMD will conduct a monthly audit of allocating time according to the Notice of Awards to ensure alignment with level of effort of staff. Supervisors will be given yearly grant budgets. Supervisors will be responsible for monitoring staff's allocation of time. During monthly Management Team meetings, a check in will be conducted with Supervisors to monitor staff allocations. September 30, 2021

2019-001

THE PARENTS? PLACE OF MARYLAND, INC. Schedule of Findings and Questioned Costs September 30, 2020 32 Section III ? Federal Awards Findings and Questioned Costs (continued) Finding: 2020-005 CFDA #/Federal Program 84.328 Special Education? Parent Training and Information Centers Pass-through Entity None ? Direct Award Federal Agency U.S. Department of Education Federal Award Number H328M150069 Award Year 2019 CFDA #/Federal Program 93.994 Maternal and Child Health Services Block Grant to the States Pass-through Entity Maryland Department of Health and Mental Hygiene Federal Agency U.S. Department of Health and Human Services Federal Award Number Unknown Award Year 2019 Category of Finding Activities Allowed/Allowable Costs - Nonpayroll Criteria 2 CFR 200.233 Retention requirements for records. Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. 2 CFR Part 230/A-122 1(b)(b) states costs should be allocable to a particular cost objective, such as a grant, contract, project, service or other activity, in accordance with the relative benefits received. Any cost allocable may not be shifted to other Federal awards to overcome funding deficiencies, or to avoid restrictions imposed by law or terms of the award. A cost is allocable to a Federal award if it is treated consistently with other costs incurred for the same purpose in like circumstances and if it: (i) is incurred specifically for the award. (ii) Benefits both the award and other work and can be distributed in reasonable proportion to the benefits received; (iii) Is necessary to the overall operation of the organization. 2 CFR Part 230/A-122 1(b)(7) states charges as indirect costs to Federal awards that are not based on federally approved rates should be supported by appropriate documentation, such as approved purchase orders, receiving reports, vendor invoices, canceled checks, and time and attendance records, and correctly charged to account, amount, and period. THE PARENTS? PLACE OF MARYLAND, INC. Schedule of Findings and Questioned Costs September 30, 2020 33 Section III ? Federal Awards Findings and Questioned Costs (continued) Finding: 2020-005 Condition and Context (continued) We selected 40 disbursements for each program and noted the following: Program 84.328: ? 16 transactions did not have a signature approval either directly on supporting document or electronically; and ? 20 transactions did not have proper allocation noted on documentation. For some of these transactions, the total paid differed from the invoice amount, but there was no note indicating why payment was different. Program 93.994: ? 24 transactions did not have a signature approval either directly on supporting documentation or electronically; ? One transaction was not located for testing; and ? 19 transactions did not have proper allocation noted on documentation. For some of these transactions the total paid differed from the invoice amount, but there was no note to indicate why the payment was different. Cause Management did not review and approve invoices, cost allocations, and indirect charges for adherence to cost principles, accuracy, and completeness. For half the year, COVID-19 caused the organization to operate in a manner that prevented them from following their ordinary review and approval process. Effect Unallowable and inaccurate expenditures could be charged to the federal programs. Questioned Costs Unknown. Repeat of Prior Year Finding No. Recommendation We recommend management adopt procedures to review and approve all documentation either by direct sign off or electronically, including via email, on all documentation. We also recommend PPMD properly document allocation of indirect costs for each transaction. View of Responsible Official Refer to PPMD?s corrective action plan.

2020-005 Activities Allowed/Allowable Costs - Nonpayroll Randi Hilfiger, Director of Operations Rene Averitt-Sanzone, Executive Director Process for approving invoices to ensure appropriate internal controls. Director of Operations will receive and allocate invoices to the appropriate grant per grant budget narratives; Director of Operations will email invoices to ED for review, changes and approval; Executive Director will electronically sign invoices and will upload approved and signed invoice into PPMD cloud storage; Director of Operations will enter into QB for payment to vendor. September 30, 2021

Condition: Employee time sheets are maintained by program/grant. However, when tracing amounts from the timesheet to the general ledger by program/grant, there is no correlation. Criteria: Timesheets should be maintained by program/grant and posted to the general ledger by program using the timesheets as a basis. Cause: A method, other than the timesheets was used to post the general ledger by program/grant. Effect: There was consistent inaccurate accumulation of time charged to the major programs. The time per the timesheets was significantly more than the amount posted to the general ledger, causing the possibility of an underpayment of grant funds. Recommendation: Timesheets should be maintained by program/grant and amounts posted to the general ledger by program using the timesheets as a basis. Questioned Costs: $ 40,946 Views of Responsible Officials and Planned Corrective Actions: Employees are required to enter their time they actually work on grants. Employees are given their estimated grant hour allocation for guidance in advance. Due to lack of administrative staff, this was not supervised accurately. There was also a change in external bookkeeping in the middle of the audit year which also accounted for inconsistency in documentation and review. One of the external bookkeeper refused to provide necessary documentation, records, invoices, and receipts. Corrective Actions: We now have a FT Administrative staff that is responsible for supervising/maintaining timesheets and entering amounts in the general ledger. All financial management has been brought in house 100%.

Finding # 2019-001 We now have a FT Administrative staff that is responsible for supervising/ maintaining timesheets and entering amounts in the general ledger. All financial management has been brought in house 100%. Person responsible ? Rene Averitt-Sanzone, Executive Director

2018-005

GSA_MIGRATION

GSA_MIGRATION