EIN: 526001028
UEI: PDCYM62SHSM6
Audited by: SB & Company, LLC
Oversight agency: 20 [Department of Transportation]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 28, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 28, 2026 (24 days from today).
What is a management decision? →During our audit, we noted the SF-425, Federal Financial Report, was not submitted timely for three out of six Airport Improvement Programs (AIP) samples selected for testing. Criteria: Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and terms and conditions of the federal awards. The characteristics of internal control are presented in the context of the components of internal control discussed in Internal Control-Integrated Framework (COSO Report), published by the Committee of Sponsoring Organizations of the Treadway Commission. The COSO Report provides a framework for organizations to design, implement, and evaluate control that will facilitate compliance with the requirements of federal laws, regulations, and program compliance requirements. Cause: The County did not have procedures in place to ensure timely submission of the SF-425 reports. Effect: The County was not in compliance with federal regulations. Questioned Costs: None. Recommendation: We recommend the County establish and implement controls to ensure compliance with reporting requirements and timelines. Auditee Response and Corrective Action Plan: The County agrees with the finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Type of Finding: ALN 20.106 - Timely Filing of SF-425, Federal Financial Report (FFR) (Federal Award Finding) Condition: During our audit, we noted the SF-425, Federal Financial Report, was not submitted timely for three out of six Airport Improvement Programs (AIP) samples selected for testing. Criteria: Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal statues, regulations, and terms and conditions of the federal awards. The characteristics of internal control are presented in the context of the components of internal control discussed in Internal Control-Integrated Framework (COSO Report), published by the Committee of Sponsoring Organizations of the Treadway Commission. The COSO Report provides a framework for organizations to design, implement, and evaluate control that will facilitate compliance with the requirements of federal laws, regulations, and program compliance requirements. Cause: The County did not have procedures in place to ensure timely submission of the SF-425 reports. Effect: The County was not in compliance with federal regulations. Questioned Costs: None. Recommendation: We recommend the County establish and implement controls to ensure compliance with reporting requirements and timelines. Auditee Response and Corrective Action Plan: The County agrees with the finding. See corrective action plan.
Response to Finding 2025-001 Timely Filing of SF-425, Federal Financial Report (FFR) (Federal Award Finding) An SF-425 annual report, covering the period ending September 30th, is due within 90 days of the reporting period for each open Airport Improvement Program (AIP) that receives funding from the Federal Aviation Administration (FAA). Prior to submission, Talbot County ensures the accuracy of each financial report by reconciling amounts between various sources, including vendor invoices, SF-271 forms, Talbot County’s ERP/accounting system, and the FAA’s web-based electronic invoicing and grant payment portal system (Delphi). While this multi-step verification process supports the accuracy of financial reports, it remains highly manual and is constrained by increasing workloads, limited resources, and a lean workforce. This challenge has intensified and become more apparent over the last few years due to the recent surge in the number of open and active AIPs. Further compounding the issue were delayed responses from the FAA and the Federal government shutdown that occurred from October 1, 2025 to November 12, 2025. During this 43-day period, Talbot County staff were unable to effectively communicate with the FAA to verify essential financial data necessary to complete the SF-425 reports. Auditee’s Corrective Action Plan: Talbot County’s corrective action plan focuses on evaluating the current workflow to identify bottlenecks (points of constraint) and opportunities to leverage technology and improve efficiency. Ultimately, a clearly defined grant process will be implemented that establishes roles, responsibilities, and expectations for staff. Increasing the frequency of grant tracking and reconciliation activities throughout the year will be a key component, as this will mitigate the potential for reporting delays and minimize the burden on staff when SF- 425 reports are due subsequent to the Federal fiscal year ending each September 30th. The improved grant procedures will expand the role of Talbot County’s Finance Office and allow for the consistent timely filing of SF-425 reports. This is an evolving process that will show marked improvement for the 2026 Single Audit. Sincerely, Martha Darling Sparks Finance Director
FAC accepted this audit on March 19, 2025 — management decision was due September 19, 2025.
FAC accepted this audit on May 21, 2024 — management decision was due November 21, 2024.
Condition and Context: Management did not have adequate controls over the bank reconciliation process to ensure that the reconciliation was completed on a timely and accurate basis. Criteria: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework defines control activities as “policies and procedures that help ensure management’s directives are carried out.” Effect or Potential Effect: Management included multiple bank accounts in a single general ledger account. Additionally, management included due from/due to accounts within cash account transactions which led to commingled activity within the general ledger account and thus reconciliation to the bank statements a more challenging process. As a result, management recorded journal entries during the audit to correct the general ledger for previous month ends. This could have allowed unidentified errors to go unnoticed during the fiscal year which potentially could have been material to the financial statements. The potential effect is that accurate information may not be available on a timely basis to make management decisions. Questioned Costs: None. Recommendation: During the audit, we were informed by management that the yearend bank statements were not accurately reconciled to the general ledger on a timely basis. Most of the problems encountered within the area of cash can be avoided if a proper system of checks and balances is incorporated into the County’s procedures. We recommend that all of the bank accounts be reconciled monthly to specific general ledger accounts and that all suspicious reconciling items be promptly investigated and adjusted with adequate explanations. Views of Responsible Officials: Management agrees with the finding. Refer to the schedule of corrective action plans section in this report.
Show full finding ▾Hide full finding ▴Condition and Context: Management did not have adequate controls over the bank reconciliation process to ensure that the reconciliation was completed on a timely and accurate basis. Criteria: The Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control – Integrated Framework defines control activities as “policies and procedures that help ensure management’s directives are carried out.” Effect or Potential Effect: Management included multiple bank accounts in a single general ledger account. Additionally, management included due from/due to accounts within cash account transactions which led to commingled activity within the general ledger account and thus reconciliation to the bank statements a more challenging process. As a result, management recorded journal entries during the audit to correct the general ledger for previous month ends. This could have allowed unidentified errors to go unnoticed during the fiscal year which potentially could have been material to the financial statements. The potential effect is that accurate information may not be available on a timely basis to make management decisions. Questioned Costs: None. Recommendation: During the audit, we were informed by management that the yearend bank statements were not accurately reconciled to the general ledger on a timely basis. Most of the problems encountered within the area of cash can be avoided if a proper system of checks and balances is incorporated into the County’s procedures. We recommend that all of the bank accounts be reconciled monthly to specific general ledger accounts and that all suspicious reconciling items be promptly investigated and adjusted with adequate explanations. Views of Responsible Officials: Management agrees with the finding. Refer to the schedule of corrective action plans section in this report.
First, we created a general ledger account for each bank account, which involved the rewrite of multiple processes, including changes in our software. We then needed to address reconciliation of past banking and general ledger transactions that were recorded using the old processes. To achieve this step, we contracted for accounting services with a firm independent of our auditors. This firm is reconciling every cash transaction in our general ledger going back to July l, 2022, to the present day. The third step of our plan involves contracting with this same firm to work with the County and its financial software company to set up our cash management software module so that we may eliminate the manual process by leveraging technology to reconcile our multiple bank accounts on a monthly basis.
Per Uniform Guidance, the County is required to file the data collection form and completed single audit package within the earlier of 30 days of receipt of the report or nine months of year end. Criteria: The County did not file the 2022 or 2023 single audit report by the required deadline. Cause: The County did not have the controls and resources in place to ensure timely completion of the financial statements and schedule of expenditures of Federal awards. Effect: The County was not in compliance with the Uniform Guidance deadline. Questioned Costs: None. Recommendation: We recommend that the County adhere to the required submission dates. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the schedule of corrective action plans section in this report.
Show full finding ▾Hide full finding ▴Condition: Per Uniform Guidance, the County is required to file the data collection form and completed single audit package within the earlier of 30 days of receipt of the report or nine months of year end. Criteria: The County did not file the 2022 or 2023 single audit report by the required deadline. Cause: The County did not have the controls and resources in place to ensure timely completion of the financial statements and schedule of expenditures of Federal awards. Effect: The County was not in compliance with the Uniform Guidance deadline. Questioned Costs: None. Recommendation: We recommend that the County adhere to the required submission dates. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the schedule of corrective action plans section in this report.
Our corrective action plan has involved the implementation of clearly defined grant processes and cross training within our department that will help the County to mitigate any future impacts on the timely submission of our single audit report. This is an evolving process that will show marked improvement for the 2024 single audit.
2022-001
FAC accepted this audit on November 8, 2023 — management decision was due May 8, 2024.
Per Uniform Guidance, the County is required to file the data collection form and completed single audit package within the earlier of 30 days of receipt of the report or nine months of year end. Criteria: The County did not file the 2022 single audit report by the required deadline. Cause: The County did not have the controls and resources in place to ensure timely completion of the financial statements and schedule of expenditures of Federal awards. Effect: The County was not in compliance with the Uniform Guidance deadline. Questioned Costs: None. Recommendation: We recommend that the County adhere to the required submission dates. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the schedule of corrective action plans section in this report.
Show full finding ▾Hide full finding ▴Condition: Per Uniform Guidance, the County is required to file the data collection form and completed single audit package within the earlier of 30 days of receipt of the report or nine months of year end. Criteria: The County did not file the 2022 single audit report by the required deadline. Cause: The County did not have the controls and resources in place to ensure timely completion of the financial statements and schedule of expenditures of Federal awards. Effect: The County was not in compliance with the Uniform Guidance deadline. Questioned Costs: None. Recommendation: We recommend that the County adhere to the required submission dates. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the schedule of corrective action plans section in this report.
Auditee’s Corrective Action Plan: Over a period of two years, Talbot County, Maryland experienced turnover in several key positions within the Finance Department, which included the Finance Director, Assistant Finance Director, and Grants Clerk. This transition significantly impacted the timely completion of our 2022 single audit report. Our corrective action plan has involved the implementation of clearly defined grant processes and cross training within our department that will help the County to mitigate any future impacts on the timely submission of our single audit report. Contact Person: Martha Sparks Completion Date September 2023
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
FAC accepted this audit on January 4, 2021 — management decision was due July 4, 2021.
FAC accepted this audit on January 14, 2020 — management decision was due July 14, 2020.
FAC accepted this audit on March 24, 2019 — management decision was due September 24, 2019.
FAC accepted this audit on March 27, 2018 — management decision was due September 27, 2018.
FAC accepted this audit on February 5, 2017 — management decision was due August 5, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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