FAC Explorer

Audit 321851

FY End
2023-12-31
Total Expended
$4.14M
Findings
2
Programs
4
Organization: Borough of Sharpsville (PA)
Year: 2023 Accepted: 2024-09-27
Auditor: Black Bashor & Porsch LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499073 2023-001 - - I
1075515 2023-001 - - I

Programs

ALN Program Spent Major Findings
66.468 Drinking Water State Revolving Fund $3.81M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $111,964 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $83,445 - 0
14.239 Home Investment Partnerships Program $59,826 - 0

Contacts

Name Title Type
C718RD5QPFV6 Ken P. Robertson Auditee
7249627896 Norbert F. Dietrich, Jr. CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Summary of Significant Auccounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Borough of Sharpsville ("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 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 select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Borough of Sharpsville ("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 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 select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance.
Title: Note 2 - Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Borough of Sharpsville ("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 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 select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 3 - Subrecipient Funding Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Borough of Sharpsville ("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 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 select portion of the operations of the Borough, it is not intended to and does not present the net position, activities, or cash flows of the Borough. Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. There were no funds passed through to subrecipients from any of the federal programs.

Finding Details

Finding 2023-001
2023 - 001 No Documented Procurement Procedures Federal Agency: U. S. Department of Environmental Protection Federal program: Capitalization Grants for Drinking Water State Revolving Fund - Assistance Listing Number - 66.468 Compliance Requirement: Procurement, Suspension, and Disbarment Type of finding: Compliance • Criteria: Nonfederal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out in the Code of Federal Regulation (CFR) section 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. • Statement of Condition: The Borough does have a procurement policy; however, the policy is not in conformity with the requirements of 2 CFR part 200. During our testing of compliance with procurement guidelines, no further deviations from federal guidelines were noted. • Statement of Cause: The Borough was unaware that their adopted procurement policy was outdated and did not conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. • Possible Asserted Effect: Without documented procurement procedures that follow Uniform Guidance, it is difficult to ensure compliance with relevant compliance requirements. • Questioned Costs: None noted. • Context: Per review of the general procurement standards of the Uniform Guidance and the related OMB Compliance Supplement, non-federal entities are required to have their own documented procurement procedures. While the Organization does have a procurement policy, the policy does not contain the information and documentation required by the applicable federal statutes and the procurement requirements identified in 2 CFR part 200. • Repeat Finding: No • Recommendation: The Borough should establish documented procedures and policies related to federal procurements that should be used in connection with all expenditures of federal awards. • Views of Responsible Officials and Planned Corrective Action: The Borough, in consultation with our solicitor, will develop and implement a procurement policy to be used when purchasing goods and services in connection with expenditures incurred under any federal awards and/or contracts.
Finding 2023-001
2023 - 001 No Documented Procurement Procedures Federal Agency: U. S. Department of Environmental Protection Federal program: Capitalization Grants for Drinking Water State Revolving Fund - Assistance Listing Number - 66.468 Compliance Requirement: Procurement, Suspension, and Disbarment Type of finding: Compliance • Criteria: Nonfederal entities other than states, including those operating federal programs as subrecipients of states, must follow the procurement standards set out in the Code of Federal Regulation (CFR) section 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. • Statement of Condition: The Borough does have a procurement policy; however, the policy is not in conformity with the requirements of 2 CFR part 200. During our testing of compliance with procurement guidelines, no further deviations from federal guidelines were noted. • Statement of Cause: The Borough was unaware that their adopted procurement policy was outdated and did not conform to applicable federal statutes and the procurement requirements identified in 2 CFR part 200. • Possible Asserted Effect: Without documented procurement procedures that follow Uniform Guidance, it is difficult to ensure compliance with relevant compliance requirements. • Questioned Costs: None noted. • Context: Per review of the general procurement standards of the Uniform Guidance and the related OMB Compliance Supplement, non-federal entities are required to have their own documented procurement procedures. While the Organization does have a procurement policy, the policy does not contain the information and documentation required by the applicable federal statutes and the procurement requirements identified in 2 CFR part 200. • Repeat Finding: No • Recommendation: The Borough should establish documented procedures and policies related to federal procurements that should be used in connection with all expenditures of federal awards. • Views of Responsible Officials and Planned Corrective Action: The Borough, in consultation with our solicitor, will develop and implement a procurement policy to be used when purchasing goods and services in connection with expenditures incurred under any federal awards and/or contracts.