FAC Explorer

Audit 304850

FY End
2020-12-31
Total Expended
$1.46M
Findings
2
Programs
3
Organization: City of Chester (PA)
Year: 2020 Accepted: 2024-04-29
Auditor: Milligan & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394969 2020-003 Material Weakness - L
971411 2020-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
20.205 Highway Planning and Construction $1.30M Yes 1
16.034 Coronavirus Emergency Supplemental Funding Program $150,841 - 0
16.710 Public Safety Partnership and Community Policing Grants $6,263 - 0

Contacts

Name Title Type
KJVKAQC3K4G5 James Lathrop Auditee
6104477700 Curiya Webber Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Prepared in accordance with Uniform Guidance on an accrual basis. De Minimis Rate Used: N Rate Explanation: No indirect charged The accompanying schedule of expenditures of federal awards presents the federally funded grant activity of the City of Chester (the “City”). 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 (the “Uniform Guidance”). Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Basis of Accounting Accounting Policies: Prepared in accordance with Uniform Guidance on an accrual basis. De Minimis Rate Used: N Rate Explanation: No indirect charged The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting, which is described in Note 1 to the City’s financial statements. The City did not elect to use the 10 percent de minimis rate.
Title: CEDA Single Audit Accounting Policies: Prepared in accordance with Uniform Guidance on an accrual basis. De Minimis Rate Used: N Rate Explanation: No indirect charged The audit of federal expenditures related to the City’s component unit, Chester Economic Development Authority (“CEDA”), for its fiscal year ended June 30, 2020, is included in a separately issued report. Federal amounts expended by CEDA are not included in the accompanying schedule of expenditures of federal awards for the City.
Title: Reissuance Accounting Policies: Prepared in accordance with Uniform Guidance on an accrual basis. De Minimis Rate Used: N Rate Explanation: No indirect charged The qualified opinion on the major program for the federal award program is an update from the version of the single audit report dated April 17, 2024 and issued on April 19, 2024. There were no additional procedures performed and the original date of the opinion did not change.

Finding Details

Finding 2020-003
Finding 2020-003 Timeliness of Annual Audit U.S. Department of Transportation, passed through Commonwealth of Pennsylvania DOT Assistance Listing 20.205; Award Nos. 066396/A/B and R18060028; Grant period – Year ended December 31, 2020 Criteria: The Uniform Guidance Part 200.512(a)(1) states: “The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.” Condition: The City did not submit its data collection form and reporting package timely. Cause: The City did not close its accounting records timely in order to produce sufficient evidence for its financial and single audits to be conducted timely. Effect: Noncompliance with Federal regulations. Questioned Costs: None noted. Context: The City did not complete its annual audit in time to comply with the federal filing deadline. Identification of Repeat Finding: N/A Recommendation: We recommend that management ensure documentation for the audit is readily available, reconciled and properly reviewed for accuracy and completion, to enable timely audit submission to the Federal Audit Clearinghouse and funding agencies. View of responsible officials and planned corrective actions: The City of Chester Chief Financial Officer has divided the finance department staff into teams with specific assignments. One team is focused on completing the 2021 and 2022 annual audits. Another team is focused on producing timely and accurate monthly financial reports for the current year. The next team is working on implementing best practices by establishing policies and procedures improving internal controls. With the assistance of third-party professionals provided by the State appointed Receiver, the goal is to complete the 2021 and 2022 audits by the end of 2024. In 2025, the City will duplicate this effort by completing the 2023 and 2024 audits by year-end.
Finding 2020-003
Finding 2020-003 Timeliness of Annual Audit U.S. Department of Transportation, passed through Commonwealth of Pennsylvania DOT Assistance Listing 20.205; Award Nos. 066396/A/B and R18060028; Grant period – Year ended December 31, 2020 Criteria: The Uniform Guidance Part 200.512(a)(1) states: “The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.” Condition: The City did not submit its data collection form and reporting package timely. Cause: The City did not close its accounting records timely in order to produce sufficient evidence for its financial and single audits to be conducted timely. Effect: Noncompliance with Federal regulations. Questioned Costs: None noted. Context: The City did not complete its annual audit in time to comply with the federal filing deadline. Identification of Repeat Finding: N/A Recommendation: We recommend that management ensure documentation for the audit is readily available, reconciled and properly reviewed for accuracy and completion, to enable timely audit submission to the Federal Audit Clearinghouse and funding agencies. View of responsible officials and planned corrective actions: The City of Chester Chief Financial Officer has divided the finance department staff into teams with specific assignments. One team is focused on completing the 2021 and 2022 annual audits. Another team is focused on producing timely and accurate monthly financial reports for the current year. The next team is working on implementing best practices by establishing policies and procedures improving internal controls. With the assistance of third-party professionals provided by the State appointed Receiver, the goal is to complete the 2021 and 2022 audits by the end of 2024. In 2025, the City will duplicate this effort by completing the 2023 and 2024 audits by year-end.