FAC Explorer

Audit 17459

FY End
2022-12-31
Total Expended
$2.50M
Findings
4
Programs
4
Organization: Borough of Berwick (PA)
Year: 2022 Accepted: 2023-09-28
Auditor: J H Williams and CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
13104 2022-004 Material Weakness - P
13105 2022-005 Significant Deficiency - P
589546 2022-004 Material Weakness - P
589547 2022-005 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.65M Yes 2
14.239 Home Investment Partnerships Program $263,907 - 0
16.710 Public Safety Partnership and Community Policing Grants $141,274 - 0
14.218 Community Development Block Grants/entitlement Grants $70,927 - 0

Contacts

Name Title Type
FG4CRLUJ1GX9 Damien Scoblink Auditee
5707522723 Philip C. Keaney Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the OMB Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Expenditures represent only the federally funded portions of the programs. Borough records should be consulted to determine the amounts expended or matched from non-federal sources, if any. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Borough of Berwick (the Borough) under program of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Borough, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Borough.

Finding Details

Finding 2022-004
2022-004 General - Financial Statement Preparation In connection with the audit of the Borough?s financial statements, like most smaller local governmental entities, management has requested that the auditors assist in the drafting of the schedule of expenditures of federal awards. Effect: Borough management has determined that it is more cost-beneficial to utilize the services of its auditors to assist in drafting financial statements, as opposed to hiring a professional accountant trained in such matters. Population and Items Tested: N/A; Finding is based upon the understanding and review of the internal control system. Auditor's Recommendation: Management should prepare the financial statements and related notes. The Borough?s planned corrective action is in its Corrective Action Plan at the end of this report.
Finding 2022-005
2022-005 General - Segregation of Duties A limited number of personnel are involved in accounting functions in which they are responsible for all related transactions (i.e. the same person recording transactions, preparing checks, recording cash disbursements, mailing checks and reconciling bank accounts, etc.). Effect: A lack of segregation of duties results in a weakness within the Borough?s internal control system. Cause: The Borough has only a limited number of employees within the business office to assign duties. Additionally, various employees? capabilities restrict the Borough?s options, in addition to weighing the additional costs of employing new personnel against the expected benefits to be derived. Population and Items Tested: N/A; Finding is based upon the understanding and review of the internal control system. Auditor's Recommendation: A greater segregation of duties can be achieved by the implementation of additional procedures that utilize current and new personnel. However, in evaluating this need, the Borough must weigh the cost of employing additional personnel against the expected benefits to be derived. The Borough?s planned corrective action is in its Corrective Action Plan at the end of this report.
Finding 2022-004
2022-004 General - Financial Statement Preparation In connection with the audit of the Borough?s financial statements, like most smaller local governmental entities, management has requested that the auditors assist in the drafting of the schedule of expenditures of federal awards. Effect: Borough management has determined that it is more cost-beneficial to utilize the services of its auditors to assist in drafting financial statements, as opposed to hiring a professional accountant trained in such matters. Population and Items Tested: N/A; Finding is based upon the understanding and review of the internal control system. Auditor's Recommendation: Management should prepare the financial statements and related notes. The Borough?s planned corrective action is in its Corrective Action Plan at the end of this report.
Finding 2022-005
2022-005 General - Segregation of Duties A limited number of personnel are involved in accounting functions in which they are responsible for all related transactions (i.e. the same person recording transactions, preparing checks, recording cash disbursements, mailing checks and reconciling bank accounts, etc.). Effect: A lack of segregation of duties results in a weakness within the Borough?s internal control system. Cause: The Borough has only a limited number of employees within the business office to assign duties. Additionally, various employees? capabilities restrict the Borough?s options, in addition to weighing the additional costs of employing new personnel against the expected benefits to be derived. Population and Items Tested: N/A; Finding is based upon the understanding and review of the internal control system. Auditor's Recommendation: A greater segregation of duties can be achieved by the implementation of additional procedures that utilize current and new personnel. However, in evaluating this need, the Borough must weigh the cost of employing additional personnel against the expected benefits to be derived. The Borough?s planned corrective action is in its Corrective Action Plan at the end of this report.