FAC Explorer

Audit 12667

FY End
2022-12-31
Total Expended
$1.40M
Findings
4
Programs
1
Organization: Borough of Lanesboro (PA)
Year: 2022 Accepted: 2024-01-22
Auditor: Murphy Dougherty and Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9274 2022-001 Material Weakness - ABFIJMN
9275 2022-002 Significant Deficiency - AB
585716 2022-001 Material Weakness - ABFIJMN
585717 2022-002 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $1.40M Yes 2

Contacts

Name Title Type
JTHBRMWVL3N3 Erin Jenner Auditee
5703967644 Leah Rosenkrans Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 auditee did not use the deminimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Borough of Lanesboro (the “Borough”) for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Borough.
Title: SUBSEQUENT EVENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 auditee did not use the deminimis cost rate. Management has evaluated subsequent events through the date of the auditor’s report, the date on which the schedule of expenditures of federal awards were available to be issued. Management has determined that no adjustments are necessary to the schedule of expenditures of federal awards.

Finding Details

Finding 2022-001
Segregation of Duties Condition: We noted that there is a lack of segregation of duties in the Borough’s accounting department due to its limited number of employees. Criteria: The Borough should have an adequate number of personnel necessary to facilitate a complete segregation of duties. Cause: The Borough does not have the resources necessary to employ additional personnel. Effect: The Borough does not have an adequate number of personnel necessary to facilitate a complete segregation of duties. Recommendations: The employment of additional personnel necessary to facilitate a complete segregation of duties may not be justified from a cost/benefit standpoint, therefore, we recommend that the Borough remain aware of this limitation and continually monitor the accounting function in order to mitigate this limitation. Response: The Borough currently employs a Secretary/Treasurer to run the day-to-day operations. The Borough will continue to evaluate the need to employ additional personnel.
Finding 2022-002
Recordkeeping Condition: During our audit we requested various financial records, which included invoices. We noted that the Company had some difficulty in providing some of the requested documents. This indicated that the recordkeeping system was not adequate to produce the documents in a timely fashion. A comprehensive recordkeeping system is critical to internal control. Criteria: The Borough should maintain complete records of all financial transactions. Cause: The accounting department is not receiving a copy of the approved costs submitted to the Pennsylvania Department of Transportation for payment. Effect: The accounting department is not able to reconcile amounts received from the Pennsylvania Department of Transportation to the amounts due out to contractors. This resulted in an overpayment to the contractor. Recommendations: The accounting department should receive a copy of approved costs submitted for payment. These approved costs should then be compared to funds received in prior to payments being made to contractors. Response: The Borough’s accounting department will receive copies of all submissions for payments and/or reimbursements. These submissions will be compared to payments received in prior to payments being made to contractors.
Finding 2022-001
Segregation of Duties Condition: We noted that there is a lack of segregation of duties in the Borough’s accounting department due to its limited number of employees. Criteria: The Borough should have an adequate number of personnel necessary to facilitate a complete segregation of duties. Cause: The Borough does not have the resources necessary to employ additional personnel. Effect: The Borough does not have an adequate number of personnel necessary to facilitate a complete segregation of duties. Recommendations: The employment of additional personnel necessary to facilitate a complete segregation of duties may not be justified from a cost/benefit standpoint, therefore, we recommend that the Borough remain aware of this limitation and continually monitor the accounting function in order to mitigate this limitation. Response: The Borough currently employs a Secretary/Treasurer to run the day-to-day operations. The Borough will continue to evaluate the need to employ additional personnel.
Finding 2022-002
Recordkeeping Condition: During our audit we requested various financial records, which included invoices. We noted that the Company had some difficulty in providing some of the requested documents. This indicated that the recordkeeping system was not adequate to produce the documents in a timely fashion. A comprehensive recordkeeping system is critical to internal control. Criteria: The Borough should maintain complete records of all financial transactions. Cause: The accounting department is not receiving a copy of the approved costs submitted to the Pennsylvania Department of Transportation for payment. Effect: The accounting department is not able to reconcile amounts received from the Pennsylvania Department of Transportation to the amounts due out to contractors. This resulted in an overpayment to the contractor. Recommendations: The accounting department should receive a copy of approved costs submitted for payment. These approved costs should then be compared to funds received in prior to payments being made to contractors. Response: The Borough’s accounting department will receive copies of all submissions for payments and/or reimbursements. These submissions will be compared to payments received in prior to payments being made to contractors.