Audit 12458

FY End

2022-12-31

Total Expended

$1.22M

Findings

4

Programs

2

Organization: Newport Township, Pennsylvania (PA)

Year: 2022 Accepted: 2024-01-19

Auditor: Kohanski & Company PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
9105	2022-001	-	-	P
9106	2022-002	Significant Deficiency	-	P
585547	2022-001	-	-	P
585548	2022-002	Significant Deficiency	-	P

ALN	Program	Spent	Major	Findings
14.218	Community Development Block Grant	$925,330	Yes	2
21.027	Coronavirus State and Local Fiscal Recovery Funds	$296,249	-	0

Contacts

Name	Title	Type
XLXDJZ2WNLK1	Joe Hillan	Auditee
5707354735	Kelley Lindsay	Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). The amounts reported in the accompanying schedule of expenditures of Federal awards agree, in all material respects, to amounts reported within the Township's financial statements. Federal award revenues are reported principally in the Township's financial statements as grants. Expenditures are recognized following, as applicable, either the grant agreement, the cost principles in OMB 2 CFR Part 200 Subpart E, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Township has elected not to use the ten percent de minimis cost rate. Indirect costs are allocated to programs based on applicable criteria relative to the Federal program. The accompanying schedule of expenditures of Federal awards presents the activity of all Federal awards programs of Newport Township (the "Township"). The Township's reporting entity is defined in Note 1 to the financial statements. All Federal awards received directly from Federal agencies as well as Federal awards passed-through other government agencies are included in the schedule.

Finding Details

Finding 2022-001

Criteria: In accordance with 2CFR Section 200.512(a), the reporting package must be submitted the earlier of thirty calendar days after receipt of the auditor's report or nine months after the end of the audit period. The single audit reporting package includes the Township's financial statements, schedule of expenditures of Federal awards, the auditor's report, and the other items. Condition: The submission of the Data Collection Form to the Federal Audit Clearing House was not completed by its required due date. Cause: Management of the Township was not aware that a Single Audit was required. Effect: The Township was not in compliance with Federal Single Audit requirements. Recommendation: The Township should evaluate all grants received to identify Federal funding. Expenditures of Federal grants should be tracked to ensure compliance with the audit requirement.

Finding 2022-002

Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires non· federal government entities that expend more than $750,000 in Federal financial assistance to have a Single Audit. All Federal expenditures should be reported on the Schedule of Expenditures of Federal Awards ("SEFA"). Condition: The Township received Federal funding from a number of different sources. During the audit it was noted that the grant contracts were executed by the prior Township manager. The current manager was not aware there was an audit requirement until notified by the grantor. Cause: Internal controls over compliance do not include procedures for identifying and tracking all Federal funds received, and expended, by the Township. Effect: There is an increased risk of noncompliance if the Township does not have controls in place to identify and report all Federal funds. Recommendation: We recommend the Township designate an individual to act as a grant coordinator. This individual would be responsible for identifying Federal awards, tracking expenditures and preparing the schedule of expenditures of Federal awards.

Finding 2022-001

Criteria: In accordance with 2CFR Section 200.512(a), the reporting package must be submitted the earlier of thirty calendar days after receipt of the auditor's report or nine months after the end of the audit period. The single audit reporting package includes the Township's financial statements, schedule of expenditures of Federal awards, the auditor's report, and the other items. Condition: The submission of the Data Collection Form to the Federal Audit Clearing House was not completed by its required due date. Cause: Management of the Township was not aware that a Single Audit was required. Effect: The Township was not in compliance with Federal Single Audit requirements. Recommendation: The Township should evaluate all grants received to identify Federal funding. Expenditures of Federal grants should be tracked to ensure compliance with the audit requirement.

Finding 2022-002

Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires non· federal government entities that expend more than $750,000 in Federal financial assistance to have a Single Audit. All Federal expenditures should be reported on the Schedule of Expenditures of Federal Awards ("SEFA"). Condition: The Township received Federal funding from a number of different sources. During the audit it was noted that the grant contracts were executed by the prior Township manager. The current manager was not aware there was an audit requirement until notified by the grantor. Cause: Internal controls over compliance do not include procedures for identifying and tracking all Federal funds received, and expended, by the Township. Effect: There is an increased risk of noncompliance if the Township does not have controls in place to identify and report all Federal funds. Recommendation: We recommend the Township designate an individual to act as a grant coordinator. This individual would be responsible for identifying Federal awards, tracking expenditures and preparing the schedule of expenditures of Federal awards.