Audit 321576

FY End
2023-12-31
Total Expended
$12.48M
Findings
2
Programs
31
Organization: County of Mercer (PA)
Year: 2023 Accepted: 2024-09-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498824 2023-002 Material Weakness Yes L
1075266 2023-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.023 Covid-19 Emergency Rental Assistance Program $3.45M Yes 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $2.18M Yes 1
10.569 Emergency Food Assistance Program (food Commodities) $334,078 - 0
93.558 Temporary Assistance for Needy Families $266,881 - 0
93.563 Child Support Services $196,256 Yes 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $162,826 - 0
93.958 Block Grants for Community Mental Health Services $155,797 - 0
14.228 Covid-19 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $153,688 - 0
10.568 Emergency Food Assistance Program (administrative Costs) $128,662 - 0
93.667 Social Services Block Grant $102,076 - 0
14.231 Emergency Solutions Grant Program $96,787 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $91,161 - 0
97.042 Emergency Management Performance Grants $90,961 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $59,419 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $56,180 - 0
84.181 Special Education-Grants for Infants and Families $37,776 - 0
20.205 Highway Planning and Construction $32,782 - 0
93.669 Child Abuse and Neglect State Grants $30,877 - 0
15.226 Payments in Lieu of Taxes $29,653 - 0
97.047 Bric: Building Resilient Infrastructure and Communities $24,021 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $20,048 - 0
93.090 Covid-19 Guardianship Assistance $14,635 - 0
97.067 Homeland Security Grant Program $12,997 - 0
93.778 Medical Assistance Program $10,386 - 0
12.112 Payments to States in Lieu of Real Estate Taxes $9,224 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $8,120 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $4,165 - 0
93.778 Covid-19 Medical Assistance Program $3,374 - 0
93.659 Adoption Assistance $1,788 - 0
93.658 Foster Care_title IV-E $184 - 0
93.090 Guardianship Assistance $70 - 0

Contacts

Name Title Type
HL5TPLAPER14 Nikki Biles Auditee
7246623800 Michelle L. Bryan Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years. Cash receipts are shown on the Schedule on the cash basis of accounting, as required by the various Commonwealth of Pennsylvania pass-through agencies. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the County of Mercer (County) 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 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 County, it is not intended to and does not present the financial position or changes in net position of the County.
Title: Emergency Food Assistance Program Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years. Cash receipts are shown on the Schedule on the cash basis of accounting, as required by the various Commonwealth of Pennsylvania pass-through agencies. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. In-kind values are reported in the Schedule at the fair value of the commodities received and disbursed.
Title: Pennsylvania Commission on Crime and Delinquency (PCCD) Accounting Policies: The accompanying Schedule is presented using the modified accrual basis of accounting. Expenditures are recognized following the cost principles contained in the Uniform Guidance. Negative amounts shown on the Schedule represent adjustment or credits made in the normal course of business to amounts reported as expenditures in prior years. Cash receipts are shown on the Schedule on the cash basis of accounting, as required by the various Commonwealth of Pennsylvania pass-through agencies. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The amounts expended per the Schedule for the following years should have been reported as follows: Please see table on page 72 of the Single Audit. The difference for Grant 28513 for fiscal year 2019 was a result of reporting cash receipts rather than expenditures on the SEFA. The difference for fiscal year 2021 was due to reporting expenditures for Grant 28513-2 under Grant 28513. The difference for Grant 34315 for fiscal year 2021 was due to erroneous exclusion of amounts expended. These differences had no impact on the major programs or other testing relating to the 2019 or 2021 audit years.

Finding Details

Finding 2023-002 – Reporting U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) – ALN 21.027 Reporting Condition: The internal control system to ensure that the Project and Expenditure Report submitted to Treasury was accurate was not operating effectively. During the 2022 reporting year, the County reported expenses on the fourth quarter report that had already been included on previous reports. In addition, the County elected to not apply expenditures related to a project to the CSLFRF funds for approximately $720,000 that were previously reported to Treasury as a use of these funds. As a result the errors in 2022, the cumulative expenditures on the Project and Expenditure Report, which are considered to be key line items being reported, are not accurate. Criteria: Quarterly reports are required to be accurate and include all activity of the reporting period, supported by the applicable accounting records and fairly presented in accordance with Treasury requirements. The reports are to include the current period expenditures, as well as the cumulative expenditures related to the projects. Cause: Internal controls in place to ensure that the quarterly reports were completed accurately were not adequate. Effect: The quarterly reports submitted to Treasury do not contain information supported by the accounting records of the County. Questioned Costs: Unknown. Identification as a Repeat Finding: This is a repeat finding from the prior audit. See Finding 2022-002. Recommendation: We recommend the County ensure proper correction of previously submitted reports. Management’s Response: Management agrees with this finding. See separate Corrective Action Plan.
Finding 2023-002 – Reporting U.S. Department of Treasury COVID-19 Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) – ALN 21.027 Reporting Condition: The internal control system to ensure that the Project and Expenditure Report submitted to Treasury was accurate was not operating effectively. During the 2022 reporting year, the County reported expenses on the fourth quarter report that had already been included on previous reports. In addition, the County elected to not apply expenditures related to a project to the CSLFRF funds for approximately $720,000 that were previously reported to Treasury as a use of these funds. As a result the errors in 2022, the cumulative expenditures on the Project and Expenditure Report, which are considered to be key line items being reported, are not accurate. Criteria: Quarterly reports are required to be accurate and include all activity of the reporting period, supported by the applicable accounting records and fairly presented in accordance with Treasury requirements. The reports are to include the current period expenditures, as well as the cumulative expenditures related to the projects. Cause: Internal controls in place to ensure that the quarterly reports were completed accurately were not adequate. Effect: The quarterly reports submitted to Treasury do not contain information supported by the accounting records of the County. Questioned Costs: Unknown. Identification as a Repeat Finding: This is a repeat finding from the prior audit. See Finding 2022-002. Recommendation: We recommend the County ensure proper correction of previously submitted reports. Management’s Response: Management agrees with this finding. See separate Corrective Action Plan.