Audit 316967

FY End
2023-12-31
Total Expended
$3.03M
Findings
16
Programs
2
Organization: Lewisburg Borough (PA)
Year: 2023 Accepted: 2024-08-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
480831 2023-004 Material Weakness Yes P
480832 2023-005 Significant Deficiency Yes P
480833 2023-004 Material Weakness Yes P
480834 2023-005 Significant Deficiency Yes P
480835 2023-004 Material Weakness Yes P
480836 2023-005 Significant Deficiency Yes P
480837 2023-004 Material Weakness Yes P
480838 2023-005 Significant Deficiency Yes P
1057273 2023-004 Material Weakness Yes P
1057274 2023-005 Significant Deficiency Yes P
1057275 2023-004 Material Weakness Yes P
1057276 2023-005 Significant Deficiency Yes P
1057277 2023-004 Material Weakness Yes P
1057278 2023-005 Significant Deficiency Yes P
1057279 2023-004 Material Weakness Yes P
1057280 2023-005 Significant Deficiency Yes P

Contacts

Name Title Type
VB6QVT5JGUN9 William Lowthert Auditee
5705233614 Joseph Gurnari 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 nonfederal sources, if any. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Borough has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Borough of Lewisburg (the "Borough") under programs of the federal government for the year ended December 31, 2023. 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

2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.
2023-004 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.
2023-005 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.