FAC Explorer

Audit 323872

FY End
2023-12-31
Total Expended
$3.30M
Findings
6
Programs
1
Organization: Aliquippa Municipal Water Authority (PA)
Year: 2023 Accepted: 2024-10-04
Auditor: Mark C Turnley CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501784 2023-001 Material Weakness - L
501785 2023-001 Material Weakness - L
501786 2023-001 Material Weakness - L
1078226 2023-001 Material Weakness - L
1078227 2023-001 Material Weakness - L
1078228 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
66.458 Clean Water State Revolving Fund $1.44M Yes 1

Contacts

Name Title Type
HBB8BCJKFU13 Robert Bible Auditee
7243755525 Kim Turnley Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: NOTE 2 - BASIS OF ACCOUNTING: Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% 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 administered by the Municipal Water Authority of Aliquippa 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 Grant Guidance – UGG). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position or changes in net position of the Municipal Water Authority of Aliquippa.
Title: NOTE 3 - RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: NOTE 2 - BASIS OF ACCOUNTING: Expenditures reported on the Schedule are presented using the accrual method of accounting. Under this method, grant revenue is recognized to the extent expenditures are incurred. Expenditures are recognized when the liability for the expenditure is incurred rather than when the disbursement is actually made. The federal expenditures are recognized, as applicable, under the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Federal financial award revenue/expenditures totaling $3,297,185, is included as part of ‘Pennvest Loans Payable’” in the accompanying financial statements (Exhibit A) and as ‘Pennvest I and Pennvest II Grant’ in Schedule 1.

Finding Details

Finding 2023-001
CONDITION: During my review of the Municipal Water Authority of Aliquippa’s internal controls over federal awards, I noted that the Authority does not have formal written policies and procedures surrounding the management of their federal award funds. Although not all-inclusive, an example of some of the required polices would include written procedures for procurement, conflict of interest, and allowable costs. CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Municipal Water Authority of Aliquippa to maintain effective internal controls over federal awards. In addition, the Uniform Guidance also recommends these internal controls follow guidance in Standards for Internal Control in the Federal Government (the Green Book), issued by the Comptroller General of the United States. EFFECT: The Municipal Water Authority of Aliquippa is not in compliance with Section 2 CFR 200.303 of the Uniform Guidance which requires non-federal entities to maintain effective internal controls over federal awards. QUESTIONED COST: None CAUSE: It was not readily determinable as to why the Municipal Water Authority of Aliquippa had not formally adopted written policies and procedures surrounding the management of their federal award funds. RECOMMENDATION: I recommend that the Municipal Water Authority of Aliquippa adopt the required written policies and procedures surrounding the management of federal award funds as prescribed by Section 2 CFR 200.303 of the Uniform Guidance. The focus of these policies and procedures should be to ensure that the Authority officials who are responsible for carrying out the objectives of the federal financial award understand 1) the federal statutes, regulations, and terms and conditions of the award, 2) how to evaluate and properly monitor compliance, and 3) the steps to take if noncompliance is identified. VIEWS OF RESPONSIBLE OFFICIALS: TheMunicipal Water Authority of Aliquippa concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.
Finding 2023-001
CONDITION: During my review of the Municipal Water Authority of Aliquippa’s internal controls over federal awards, I noted that the Authority does not have formal written policies and procedures surrounding the management of their federal award funds. Although not all-inclusive, an example of some of the required polices would include written procedures for procurement, conflict of interest, and allowable costs. CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Municipal Water Authority of Aliquippa to maintain effective internal controls over federal awards. In addition, the Uniform Guidance also recommends these internal controls follow guidance in Standards for Internal Control in the Federal Government (the Green Book), issued by the Comptroller General of the United States. EFFECT: The Municipal Water Authority of Aliquippa is not in compliance with Section 2 CFR 200.303 of the Uniform Guidance which requires non-federal entities to maintain effective internal controls over federal awards. QUESTIONED COST: None CAUSE: It was not readily determinable as to why the Municipal Water Authority of Aliquippa had not formally adopted written policies and procedures surrounding the management of their federal award funds. RECOMMENDATION: I recommend that the Municipal Water Authority of Aliquippa adopt the required written policies and procedures surrounding the management of federal award funds as prescribed by Section 2 CFR 200.303 of the Uniform Guidance. The focus of these policies and procedures should be to ensure that the Authority officials who are responsible for carrying out the objectives of the federal financial award understand 1) the federal statutes, regulations, and terms and conditions of the award, 2) how to evaluate and properly monitor compliance, and 3) the steps to take if noncompliance is identified. VIEWS OF RESPONSIBLE OFFICIALS: TheMunicipal Water Authority of Aliquippa concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.
Finding 2023-001
CONDITION: During my review of the Municipal Water Authority of Aliquippa’s internal controls over federal awards, I noted that the Authority does not have formal written policies and procedures surrounding the management of their federal award funds. Although not all-inclusive, an example of some of the required polices would include written procedures for procurement, conflict of interest, and allowable costs. CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Municipal Water Authority of Aliquippa to maintain effective internal controls over federal awards. In addition, the Uniform Guidance also recommends these internal controls follow guidance in Standards for Internal Control in the Federal Government (the Green Book), issued by the Comptroller General of the United States. EFFECT: The Municipal Water Authority of Aliquippa is not in compliance with Section 2 CFR 200.303 of the Uniform Guidance which requires non-federal entities to maintain effective internal controls over federal awards. QUESTIONED COST: None CAUSE: It was not readily determinable as to why the Municipal Water Authority of Aliquippa had not formally adopted written policies and procedures surrounding the management of their federal award funds. RECOMMENDATION: I recommend that the Municipal Water Authority of Aliquippa adopt the required written policies and procedures surrounding the management of federal award funds as prescribed by Section 2 CFR 200.303 of the Uniform Guidance. The focus of these policies and procedures should be to ensure that the Authority officials who are responsible for carrying out the objectives of the federal financial award understand 1) the federal statutes, regulations, and terms and conditions of the award, 2) how to evaluate and properly monitor compliance, and 3) the steps to take if noncompliance is identified. VIEWS OF RESPONSIBLE OFFICIALS: TheMunicipal Water Authority of Aliquippa concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.
Finding 2023-001
CONDITION: During my review of the Municipal Water Authority of Aliquippa’s internal controls over federal awards, I noted that the Authority does not have formal written policies and procedures surrounding the management of their federal award funds. Although not all-inclusive, an example of some of the required polices would include written procedures for procurement, conflict of interest, and allowable costs. CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Municipal Water Authority of Aliquippa to maintain effective internal controls over federal awards. In addition, the Uniform Guidance also recommends these internal controls follow guidance in Standards for Internal Control in the Federal Government (the Green Book), issued by the Comptroller General of the United States. EFFECT: The Municipal Water Authority of Aliquippa is not in compliance with Section 2 CFR 200.303 of the Uniform Guidance which requires non-federal entities to maintain effective internal controls over federal awards. QUESTIONED COST: None CAUSE: It was not readily determinable as to why the Municipal Water Authority of Aliquippa had not formally adopted written policies and procedures surrounding the management of their federal award funds. RECOMMENDATION: I recommend that the Municipal Water Authority of Aliquippa adopt the required written policies and procedures surrounding the management of federal award funds as prescribed by Section 2 CFR 200.303 of the Uniform Guidance. The focus of these policies and procedures should be to ensure that the Authority officials who are responsible for carrying out the objectives of the federal financial award understand 1) the federal statutes, regulations, and terms and conditions of the award, 2) how to evaluate and properly monitor compliance, and 3) the steps to take if noncompliance is identified. VIEWS OF RESPONSIBLE OFFICIALS: TheMunicipal Water Authority of Aliquippa concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.
Finding 2023-001
CONDITION: During my review of the Municipal Water Authority of Aliquippa’s internal controls over federal awards, I noted that the Authority does not have formal written policies and procedures surrounding the management of their federal award funds. Although not all-inclusive, an example of some of the required polices would include written procedures for procurement, conflict of interest, and allowable costs. CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Municipal Water Authority of Aliquippa to maintain effective internal controls over federal awards. In addition, the Uniform Guidance also recommends these internal controls follow guidance in Standards for Internal Control in the Federal Government (the Green Book), issued by the Comptroller General of the United States. EFFECT: The Municipal Water Authority of Aliquippa is not in compliance with Section 2 CFR 200.303 of the Uniform Guidance which requires non-federal entities to maintain effective internal controls over federal awards. QUESTIONED COST: None CAUSE: It was not readily determinable as to why the Municipal Water Authority of Aliquippa had not formally adopted written policies and procedures surrounding the management of their federal award funds. RECOMMENDATION: I recommend that the Municipal Water Authority of Aliquippa adopt the required written policies and procedures surrounding the management of federal award funds as prescribed by Section 2 CFR 200.303 of the Uniform Guidance. The focus of these policies and procedures should be to ensure that the Authority officials who are responsible for carrying out the objectives of the federal financial award understand 1) the federal statutes, regulations, and terms and conditions of the award, 2) how to evaluate and properly monitor compliance, and 3) the steps to take if noncompliance is identified. VIEWS OF RESPONSIBLE OFFICIALS: TheMunicipal Water Authority of Aliquippa concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.
Finding 2023-001
CONDITION: During my review of the Municipal Water Authority of Aliquippa’s internal controls over federal awards, I noted that the Authority does not have formal written policies and procedures surrounding the management of their federal award funds. Although not all-inclusive, an example of some of the required polices would include written procedures for procurement, conflict of interest, and allowable costs. CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Municipal Water Authority of Aliquippa to maintain effective internal controls over federal awards. In addition, the Uniform Guidance also recommends these internal controls follow guidance in Standards for Internal Control in the Federal Government (the Green Book), issued by the Comptroller General of the United States. EFFECT: The Municipal Water Authority of Aliquippa is not in compliance with Section 2 CFR 200.303 of the Uniform Guidance which requires non-federal entities to maintain effective internal controls over federal awards. QUESTIONED COST: None CAUSE: It was not readily determinable as to why the Municipal Water Authority of Aliquippa had not formally adopted written policies and procedures surrounding the management of their federal award funds. RECOMMENDATION: I recommend that the Municipal Water Authority of Aliquippa adopt the required written policies and procedures surrounding the management of federal award funds as prescribed by Section 2 CFR 200.303 of the Uniform Guidance. The focus of these policies and procedures should be to ensure that the Authority officials who are responsible for carrying out the objectives of the federal financial award understand 1) the federal statutes, regulations, and terms and conditions of the award, 2) how to evaluate and properly monitor compliance, and 3) the steps to take if noncompliance is identified. VIEWS OF RESPONSIBLE OFFICIALS: TheMunicipal Water Authority of Aliquippa concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.