Audit 322538

FY End

2023-12-31

Total Expended

$1.20M

Findings

2

Programs

1

Organization: Meadville Area Sewer Authority (PA)

Year: 2023 Accepted: 2024-09-30

Auditor: Mattern CPA LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
499729	2023-003	Significant Deficiency	-	H
1076171	2023-003	Significant Deficiency	-	H

ALN	Program	Spent	Major	Findings
66.458	Clean Water State Revolving Fund	$1.20M	Yes	1

Contacts

Name	Title	Type
YLABCD9QNBX6	April Smith	Auditee
8143333311	Clint Mattern	Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein ceratin types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Meadville Area Sewer Authority has not elected to use the ten percent de minimis indirect cost rate as allowed. De Minimis Rate Used: N Rate Explanation: Meadville Area Sewer Authority has not elected to use the ten percent de minimis indirect cost rate as allowed. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Meadville Area Sewer Authority 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 Authority, it is not intended to and does not present the net position, change in net position, or cash flows of the Authority.

Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein ceratin types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Meadville Area Sewer Authority has not elected to use the ten percent de minimis indirect cost rate as allowed. De Minimis Rate Used: N Rate Explanation: Meadville Area Sewer Authority has not elected to use the ten percent de minimis indirect cost rate as allowed. Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein ceratin types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown in the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Meadville Area Sewer Authority has not elected to use the ten percent de minimis indirect cost rate as allowed.

Finding Details

Finding 2023-003

2023-003: Period of Performance a. Condition: Meadville Area Sewer Authority did not properly pay out vendors in a timely basis for services performed during their current project for sewer plant upgrades. b. Criteria: Compliance with federal guidelines was not properly followed when paying out vendors for work performed in the proper timeframe of project activity. c. Cause: The internal procedures failed to disclose that one disbursement was not paid within the 120-day deadline to liquidate expenses with no extension of payments noted. d. Effect: The failure to pay out vendor invoices within the 120-day period. e. Recommendation: The auditor recommends that on completion of work by vendors, the Authority should look to request invoices from the vendor to ensure payables are properly kept track of and payments are made within the time period noted in the grant paperwork. f. Response: An internal procedure was created, in addition to former procedures that shows a more detailed approach of ensuring every invoice involved with each drawdown are accounted for and paid on a timely basis to each vendor. The Authority believes this instance was a one-time item that will be corrected.

Finding 2023-003

2023-003: Period of Performance a. Condition: Meadville Area Sewer Authority did not properly pay out vendors in a timely basis for services performed during their current project for sewer plant upgrades. b. Criteria: Compliance with federal guidelines was not properly followed when paying out vendors for work performed in the proper timeframe of project activity. c. Cause: The internal procedures failed to disclose that one disbursement was not paid within the 120-day deadline to liquidate expenses with no extension of payments noted. d. Effect: The failure to pay out vendor invoices within the 120-day period. e. Recommendation: The auditor recommends that on completion of work by vendors, the Authority should look to request invoices from the vendor to ensure payables are properly kept track of and payments are made within the time period noted in the grant paperwork. f. Response: An internal procedure was created, in addition to former procedures that shows a more detailed approach of ensuring every invoice involved with each drawdown are accounted for and paid on a timely basis to each vendor. The Authority believes this instance was a one-time item that will be corrected.