Hazard Mitigation Grant Program (HMGP) – Assistance Listing No. 97.039; Grant No. 2057-4506-HMGP; Grant Period Year Ended December 31, 2023 – Cash Management
Condition: Perkiomen Township has no written policy regarding cash management of funds received under Federal grants that are subject to the Cash Management compliance requirement.
Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)).
Cause: Management was not aware of specific compliance requirements to minimize the time elapsing between the transfer of funds from Pennsylvania Emergency Management Agency (PEMA) and the disbursement by the Township for project costs.
Effect: Although Perkiomen Township has no written policy regarding cash management of funds received under Federal grants that are subject to the Cash Management compliance requirement, of the funds received on November 13, 2023, totaling $1,154,359.30, the Township had disbursed most of these funds, totaling $1,118,102.77, by December 31, 2023.
Context: The results of audit procedures revealed that funds totaling $1,154,359.30 were received on November 13, 2023, and that the Township had disbursed most of these funds, totaling $1,118,102.77, by December 31, 2023.
Recommendation: Perkiomen Township should adopt a written policy regarding cash management of funds received under Federal grants that is designed to minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the Township.
Hazard Mitigation Grant Program (HMGP) – Assistance Listing No. 97.039; Grant No. 2057-4506-HMGP; Grant Period Year Ended December 31, 2023 – Reporting
Condition: Although Perkiomen Township received funds totaling $1,154,359.30 on November 13, 2023, the Township did not submit a monthly reconciliation report to PEMA for the month of November 2023.
Criteria: The “U.S. Department of Homeland Security Federal Fiscal Year 2019 Hazard Mitigation Grant Program Agreement” entered by and between the Commonwealth of Pennsylvania, acting through the Pennsylvania Emergency Management Agency ("PEMA"), and Perkiomen Township, states the following:
“The Subrecipient shall submit monthly reconciliation reports to PEMA by the tenth working day of each month during and until the conclusion of the period of performance of this grant, comprised of the following information:
i. Account balance and interest earned from account stated in subsection 25.c. above;
ii. Monitoring report to include project progress and project cost breakdown to date”
Cause: Oversight of not filing the monthly reconciliation report for November 2023.
Effect: The Township did not submit a monthly reconciliation report to PEMA for the month of November 2023.
Context: In order to test Perkiomen Township’s compliance with the reporting requirements, the auditor requested copies of all monthly reconciliation reports filed for 2023. The Township did not have a report for the month of November 2023 on file.
Recommendation: The Township should file a monthly reconciliation report for November 2023 and should ensure that a monthly reconciliation report is filed for each month during the program period.
Hazard Mitigation Grant Program (HMGP) – Assistance Listing No. 97.039; Grant No. 2057-4506-HMGP; Grant Period Year Ended December 31, 2023 – Cash Management
Condition: Perkiomen Township has no written policy regarding cash management of funds received under Federal grants that are subject to the Cash Management compliance requirement.
Criteria: Non-federal entities must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity for direct program or project costs and the proportionate share of allowable indirect costs, whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means (2 CFR section 200.305(b)).
Cause: Management was not aware of specific compliance requirements to minimize the time elapsing between the transfer of funds from Pennsylvania Emergency Management Agency (PEMA) and the disbursement by the Township for project costs.
Effect: Although Perkiomen Township has no written policy regarding cash management of funds received under Federal grants that are subject to the Cash Management compliance requirement, of the funds received on November 13, 2023, totaling $1,154,359.30, the Township had disbursed most of these funds, totaling $1,118,102.77, by December 31, 2023.
Context: The results of audit procedures revealed that funds totaling $1,154,359.30 were received on November 13, 2023, and that the Township had disbursed most of these funds, totaling $1,118,102.77, by December 31, 2023.
Recommendation: Perkiomen Township should adopt a written policy regarding cash management of funds received under Federal grants that is designed to minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the Township.
Hazard Mitigation Grant Program (HMGP) – Assistance Listing No. 97.039; Grant No. 2057-4506-HMGP; Grant Period Year Ended December 31, 2023 – Reporting
Condition: Although Perkiomen Township received funds totaling $1,154,359.30 on November 13, 2023, the Township did not submit a monthly reconciliation report to PEMA for the month of November 2023.
Criteria: The “U.S. Department of Homeland Security Federal Fiscal Year 2019 Hazard Mitigation Grant Program Agreement” entered by and between the Commonwealth of Pennsylvania, acting through the Pennsylvania Emergency Management Agency ("PEMA"), and Perkiomen Township, states the following:
“The Subrecipient shall submit monthly reconciliation reports to PEMA by the tenth working day of each month during and until the conclusion of the period of performance of this grant, comprised of the following information:
i. Account balance and interest earned from account stated in subsection 25.c. above;
ii. Monitoring report to include project progress and project cost breakdown to date”
Cause: Oversight of not filing the monthly reconciliation report for November 2023.
Effect: The Township did not submit a monthly reconciliation report to PEMA for the month of November 2023.
Context: In order to test Perkiomen Township’s compliance with the reporting requirements, the auditor requested copies of all monthly reconciliation reports filed for 2023. The Township did not have a report for the month of November 2023 on file.
Recommendation: The Township should file a monthly reconciliation report for November 2023 and should ensure that a monthly reconciliation report is filed for each month during the program period.