FAC Explorer

Audit 316706

FY End
2023-12-31
Total Expended
$3.31M
Findings
6
Programs
1
Organization: Perkasie Regional Authority (PA)
Year: 2023 Accepted: 2024-08-06
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480512 2023-001 Material Weakness - L
480513 2023-002 Material Weakness - L
480514 2023-003 Significant Deficiency - B
1056954 2023-001 Material Weakness - L
1056955 2023-002 Material Weakness - L
1056956 2023-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
66.468 Capitalization Grants for Drinking Water State Revolving Funds $3.31M Yes 3

Contacts

Name Title Type
MLADCQ2Y3NU1 Nicholas T Fretz Auditee
2152573654 Justin Nepo Auditor
No contacts on file

Notes to SEFA

Title: General Information Accounting Policies: accrual basis of accounting 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”) presents the activities in all the federal award programs of Perkasie Regional Authority (“Authority”). All financial awards expended directly from federal agencies, as well as financial awards passed through other governmental agencies are included on the Schedule. The Schedule has been prepared solely to comply with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles. Because the Schedule submitted is limited to these requirements, this information is not intended to present the financial position and results of operations of the Authority.
Title: Basis of Accounting Accounting Policies: accrual basis of accounting De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The Schedule is presented using the accrual basis of accounting. Expenditures of federal awards are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Finding Details

Finding 2023-001
The Authority failed to recognize revenue related to its federal grant in the amount of $1,240,580 for the year ended December 31, 2023
Finding 2023-002
During procedures performed for reconciliation of the information presented on the SEFA to the underlying records used to prepare the SEFA such as the general ledger, reimbursement requests and grant agreements, auditor noted the following: 1) The federal expenditures were not properly reflected on the SEFA as the Authority did not properly account for expenditures submitted for reimbursement but not received before December 31, 2023; 2) The Authority lacked the proper segregation of duties as the Authority Manager prepared and reviewed the SEFA
Finding 2023-003
The approved budget for the grant included two Authority employees both of which are salaried employees. During the audit procedures performed for testing payroll charged as direct cost reimbursement for the grant award, the auditors noted that the Authority allocated the approved budgeted payroll evenly throughout the year to the grant versus specifically identifying and allocating actual time incurred on the grant as a reimbursement request. One of the employees did have a timesheet and did indicate time was incurred on the grant but no actual hours were quantified on the timesheet. The other Authority employee does not complete a timesheet as the individual is in an administrative function. There was no timesheet for this employee. The total payroll charged to the grant award was below the questioned cost threshold.
Finding 2023-001
The Authority failed to recognize revenue related to its federal grant in the amount of $1,240,580 for the year ended December 31, 2023
Finding 2023-002
During procedures performed for reconciliation of the information presented on the SEFA to the underlying records used to prepare the SEFA such as the general ledger, reimbursement requests and grant agreements, auditor noted the following: 1) The federal expenditures were not properly reflected on the SEFA as the Authority did not properly account for expenditures submitted for reimbursement but not received before December 31, 2023; 2) The Authority lacked the proper segregation of duties as the Authority Manager prepared and reviewed the SEFA
Finding 2023-003
The approved budget for the grant included two Authority employees both of which are salaried employees. During the audit procedures performed for testing payroll charged as direct cost reimbursement for the grant award, the auditors noted that the Authority allocated the approved budgeted payroll evenly throughout the year to the grant versus specifically identifying and allocating actual time incurred on the grant as a reimbursement request. One of the employees did have a timesheet and did indicate time was incurred on the grant but no actual hours were quantified on the timesheet. The other Authority employee does not complete a timesheet as the individual is in an administrative function. There was no timesheet for this employee. The total payroll charged to the grant award was below the questioned cost threshold.