Audit 19407

FY End
2022-06-30
Total Expended
$5.48M
Findings
12
Programs
11
Organization: Berwick Area School District (PA)
Year: 2022 Accepted: 2023-05-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
21777 2022-002 Material Weakness - P
21778 2022-002 Material Weakness - P
21779 2022-002 Material Weakness - P
21780 2022-002 Material Weakness - P
21781 2022-002 Material Weakness - P
21782 2022-002 Material Weakness - P
598219 2022-002 Material Weakness - P
598220 2022-002 Material Weakness - P
598221 2022-002 Material Weakness - P
598222 2022-002 Material Weakness - P
598223 2022-002 Material Weakness - P
598224 2022-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $1.23M - 0
84.010 Title I Grants to Local Educational Agencies $952,621 - 0
84.027 Special Education_grants to States $646,965 Yes 0
10.553 School Breakfast Program $322,772 - 0
84.367 Improving Teacher Quality State Grants $128,196 - 0
84.424 Student Support and Academic Enrichment Program $65,605 - 0
84.425 Education Stabilization Fund $30,855 Yes 1
93.778 Medical Assistance Program $18,469 - 0
84.365 English Language Acquisition State Grants $10,266 - 0
84.173 Special Education_preschool Grants $7,935 Yes 0
10.649 Pandemic Ebt Administrative Costs $3,063 - 0

Contacts

Name Title Type
KAM7N7839N71 Tina Hrinda Auditee
5707596400 Caitlin M. Pita Auditor
No contacts on file

Notes to SEFA

Title: IDENTIFICATION OF MAJOR PROGRAMS Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Berwick Area School District (the District) under programs of the federal government for the year ended June 30, 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 District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. The accompanying Schedule has been presented on the accrual basis of accounting. Expenditures are recorded, accordingly, when incurred rather than when paid. The accompanying Schedule reflects Federal expenditures for all programs which were active during the year. The categorization of expenditures included in the accompanying Schedule is based on the Catalog of Federal Domestic Assistance (CFDA). The District has received noncash assistance during the year ended June 30, 2022 which is included in the Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The District did not have any sub-recipients or pass through and funds to sub-recipients. The School District elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. As shown on the accompanying Schedule of Findings and Questioned Costs, the dollar threshold used to distinguish between type A and type B programs were seven hundred and fifty thousand ($750,000) dollars. The Type A program audited as major for coverage was ESSER; the amount expended under the program audited as a major federal program for the year ended June 30, 2022, totaled $1,809,147 or 33.03% of total federal awards expended.
Title: MEDICAL ASSISTANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Berwick Area School District (the District) under programs of the federal government for the year ended June 30, 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 District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District. The accompanying Schedule has been presented on the accrual basis of accounting. Expenditures are recorded, accordingly, when incurred rather than when paid. The accompanying Schedule reflects Federal expenditures for all programs which were active during the year. The categorization of expenditures included in the accompanying Schedule is based on the Catalog of Federal Domestic Assistance (CFDA). The District has received noncash assistance during the year ended June 30, 2022 which is included in the Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The District did not have any sub-recipients or pass through and funds to sub-recipients. The School District elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Access reimbursement received under CFDA #93.778, Revenue Code 8810 are classified as fee-for-service revenues and are not recognized as federal awards for the purpose of the Schedule of Expenditures of Federal Awards.

Finding Details

Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.
Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation Federal Agency: U.S. Department of Education Compliance Requirement/ Description: Internal control deficiency over Financial Reporting; Financial Statement Adjustments and Presentation ? Material Weakness Criteria 2 CFR 200.516(a) requires that recipients? financial management system provides for the following: 1) Accurate, current and complete disclosure of the financial results of each federally sponsored project or program in accordance with the reporting requirements set forth in Section 215.52. 2) Effective control over and accountability for all funds, property and other assets. Recipients shall adequately safeguard all such assets and assure they are used solely for authorized purposes. Condition Audit adjustments were required to be posted to the District?s general ledger and entity wide financial statements to properly reflect its financial position and financial activity for the year under audit. Although much of the information for the adjustments was provided by the District, the fact that these adjustments were required to be posted for the financial statements and Schedule of Expenditure of Federal Awards to be properly stated constitutes a deficiency in the District?s financial reporting processes. The District was unable to provide final financial statements for PDE?s Annual Financial Report (AFR) and entity wide statements without guidance from the auditor. In connection with the audit of the District?s financial statements, management has requested that we assist in the drafting of the financial statements, required supplementary information, and related footnote disclosures. No population was tested; the finding is based upon understanding and review of the internal control system. Cause Although the District?s internal accounting personnel can interpret and understand its financial statements, both fund and entity wide, there were a number of entries that needed clarification by the auditor at year end to prepare those financials in accordance with GAAP. Finding Number: 2022-002 Material Weakness in Internal Controls over Financial Reporting - Financial Statement Adjustments and Presentation (Continued) Effect Greater opportunity for error in the preparation of the Schedule of Expenditures of Federal Awards and no assurance that errors will be detected and corrected on a timely basis. The District?s financial position and financial activity as of and for the year ended June 30, 2022, were not properly stated until the adjustments were posted to the general ledger. Questioned Costs Unknown Recommendation The District should continue to evaluate its year end procedures to reconcile and post the additional entries required as part of the year-end closing process and not as audit adjustments. Prior Year Finding No Auditee Response and Corrective Action Plan See attached response.