FAC Explorer

Audit 3240

FY End
2023-06-30
Total Expended
$4.92M
Findings
10
Programs
7
Organization: Blair County Community Action Program (PA)
Year: 2023 Accepted: 2023-11-15
Auditor: Young Oakes Brown & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1860 2023-001 Material Weakness - ABFGIN
1861 2023-002 Significant Deficiency - ABFGIN
1862 2023-003 Significant Deficiency - ABFGIN
1863 2023-001 Material Weakness - CEGHLM
1864 2023-002 Significant Deficiency - CEGHLM
578302 2023-001 Material Weakness - ABFGIN
578303 2023-002 Significant Deficiency - ABFGIN
578304 2023-003 Significant Deficiency - ABFGIN
578305 2023-001 Material Weakness - CEGHLM
578306 2023-002 Significant Deficiency - CEGHLM

Programs

ALN Program Spent Major Findings
93.568 Low-Income Home Energy Assistance $1.57M Yes 2
14.231 Emergency Solutions Grant Program $1.48M Yes 3
14.267 Continuum of Care Program $477,827 - 0
93.569 Community Services Block Grant $450,713 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $431,495 - 0
81.042 Weatherization Assistance for Low-Income Persons $311,937 - 0
14.218 Community Development Block Grants/entitlement Grants $199,178 - 0

Contacts

Name Title Type
LVFEWVL6HP43 Christine Zernick Auditee
8149463651 David Scott Auditor
No contacts on file

Notes to SEFA

Title: EXTENSIVE COMPLIANCE TEST Accounting Policies: The expenditures shown on the Schedule of Expenditures of Federal Awards were based on the accrual basis of accounting. The cash basis is used for revenue in order that the funding agency can trace the grant proceeds easily. De Minimis Rate Used: N Rate Explanation: THE CLIENT DID NOT ELECT USE THE DE MINIMIS COST RATE. An extensive compliance test, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), was performed on the Emergency Solutions Grant and Low-Income Home Energy Assistance programs, which represents 62% of the total expenditures reflected on the Schedule of Expenditures of Federal Awards. The 20% of coverage test for a low risk auditee was satisfied as follows: Community Development Block Grant/Entitlement Grant 14.218 $199,178; Emergency Solutions Grant 14.231 $1,475,587; Continuum of Care Program 14.267 $477,827; Coronavirus State and Local Fiscal Recovery Funds 21.027 $431,495; Weatherization Assistance for Low-Income Persons 81.042 $311,937; Low-Income Home Energy Assistance 93.568 $1,573,721; Community Services Block Grant 93.569 $450,713 totals $4,920,458 times 20% is $984,092 the minimum amount which must be tested. The Emergency Solutions Grant and Low-Income Home Energy Assistance programs exceed $984,092 and, therefore, represents the only programs to which the specific compliance requirements must be applied.

Finding Details

Finding 2023-001
Condition The beginning balances of accounts receivable were overstated in the amount of $296,539 and the deferred revenue was overstated in the amount of $498,882 on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. Criteria The accounts receivable and deferred revenue accounts should be reconciled to their proper balance in the general ledger on a monthly basis and reported properly on the Schedule of Expenditures of Federal Awards. Cause The finance director was relying on guidance from the prior year auditor and did not verify the recommended adjusting entries. Effect There was a substantial overstatement of accounts receivable and deferred revenue recorded in the general ledger which caused a substantial overstatement on the Schedule of Expenditures of Federal Awards. Recommendation We recommend that all accounts in the general ledger be reviewed and reconciled to their proper balance in the general ledger on a monthly basis and be reported property on the Schedule of Expenditures of Federal Awards.
Finding 2023-002
Condition The finance director is involved with almost every step of cash receipt and cash disbursement transactions. Also, there is more than the finance director who has access to the OuickBooks using the same password. Criteria There should be a segregation of duties related to cash receipt and cash disbursement transactions. The access to OuickBooks should be limited to the finance director. Cause There is a small office staff with a limited ability to have segregation of duties and more than one individual had access to the OuickBooks accounting software using the same password. Effect There is a weakness in internal control over cash receipts and cash disbursements when there is a lack of segregation of duties and more than one individual has access to the OuickBooks accounting software using the same password. Recommendation We recommend that procedures be put in place so that more than the finance director is involved in the cash receipt and disbursement process. Also, we recommend that only the finance director have access to OuickBooks. -
Finding 2023-003
Condition There were grant proceeds passed-through to Family Servies Incorporated during the fiscal year ending June 30, 2023 without an Emergency Solution Grant Cares Program subrecipient agreement. Criteria There is a requirement to have a signed subrecipient agreement prior to the pass-through of grant proceeds. Cause There was an oversight by the Development Director to not have a signed subrecipient agreement with Family Services Incorporated. Effect There is an internal control weakness when grant proceeds are passed through to a subrecipient without a signed agreement. Recommendation We recommend that a signed subrecipient agreement be in place prior to the pass-through of grant proceeds.
Finding 2023-001
Condition The beginning balances of accounts receivable were overstated in the amount of $296,539 and the deferred revenue was overstated in the amount of $498,882 on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. Criteria The accounts receivable and deferred revenue accounts should be reconciled to their proper balance in the general ledger on a monthly basis and reported properly on the Schedule of Expenditures of Federal Awards. Cause The finance director was relying on guidance from the prior year auditor and did not verify the recommended adjusting entries. Effect There was a substantial overstatement of accounts receivable and deferred revenue recorded in the general ledger which caused a substantial overstatement on the Schedule of Expenditures of Federal Awards. Recommendation We recommend that all accounts in the general ledger be reviewed and reconciled to their proper balance in the general ledger on a monthly basis and be reported property on the Schedule of Expenditures of Federal Awards.
Finding 2023-002
Condition The finance director is involved with almost every step of cash receipt and cash disbursement transactions. Also, there is more than the finance director who has access to the OuickBooks using the same password. Criteria There should be a segregation of duties related to cash receipt and cash disbursement transactions. The access to OuickBooks should be limited to the finance director. Cause There is a small office staff with a limited ability to have segregation of duties and more than one individual had access to the OuickBooks accounting software using the same password. Effect There is a weakness in internal control over cash receipts and cash disbursements when there is a lack of segregation of duties and more than one individual has access to the OuickBooks accounting software using the same password. Recommendation We recommend that procedures be put in place so that more than the finance director is involved in the cash receipt and disbursement process. Also, we recommend that only the finance director have access to OuickBooks. -
Finding 2023-001
Condition The beginning balances of accounts receivable were overstated in the amount of $296,539 and the deferred revenue was overstated in the amount of $498,882 on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. Criteria The accounts receivable and deferred revenue accounts should be reconciled to their proper balance in the general ledger on a monthly basis and reported properly on the Schedule of Expenditures of Federal Awards. Cause The finance director was relying on guidance from the prior year auditor and did not verify the recommended adjusting entries. Effect There was a substantial overstatement of accounts receivable and deferred revenue recorded in the general ledger which caused a substantial overstatement on the Schedule of Expenditures of Federal Awards. Recommendation We recommend that all accounts in the general ledger be reviewed and reconciled to their proper balance in the general ledger on a monthly basis and be reported property on the Schedule of Expenditures of Federal Awards.
Finding 2023-002
Condition The finance director is involved with almost every step of cash receipt and cash disbursement transactions. Also, there is more than the finance director who has access to the OuickBooks using the same password. Criteria There should be a segregation of duties related to cash receipt and cash disbursement transactions. The access to OuickBooks should be limited to the finance director. Cause There is a small office staff with a limited ability to have segregation of duties and more than one individual had access to the OuickBooks accounting software using the same password. Effect There is a weakness in internal control over cash receipts and cash disbursements when there is a lack of segregation of duties and more than one individual has access to the OuickBooks accounting software using the same password. Recommendation We recommend that procedures be put in place so that more than the finance director is involved in the cash receipt and disbursement process. Also, we recommend that only the finance director have access to OuickBooks. -
Finding 2023-003
Condition There were grant proceeds passed-through to Family Servies Incorporated during the fiscal year ending June 30, 2023 without an Emergency Solution Grant Cares Program subrecipient agreement. Criteria There is a requirement to have a signed subrecipient agreement prior to the pass-through of grant proceeds. Cause There was an oversight by the Development Director to not have a signed subrecipient agreement with Family Services Incorporated. Effect There is an internal control weakness when grant proceeds are passed through to a subrecipient without a signed agreement. Recommendation We recommend that a signed subrecipient agreement be in place prior to the pass-through of grant proceeds.
Finding 2023-001
Condition The beginning balances of accounts receivable were overstated in the amount of $296,539 and the deferred revenue was overstated in the amount of $498,882 on the Schedule of Expenditures of Federal Awards for the year ended June 30, 2022. Criteria The accounts receivable and deferred revenue accounts should be reconciled to their proper balance in the general ledger on a monthly basis and reported properly on the Schedule of Expenditures of Federal Awards. Cause The finance director was relying on guidance from the prior year auditor and did not verify the recommended adjusting entries. Effect There was a substantial overstatement of accounts receivable and deferred revenue recorded in the general ledger which caused a substantial overstatement on the Schedule of Expenditures of Federal Awards. Recommendation We recommend that all accounts in the general ledger be reviewed and reconciled to their proper balance in the general ledger on a monthly basis and be reported property on the Schedule of Expenditures of Federal Awards.
Finding 2023-002
Condition The finance director is involved with almost every step of cash receipt and cash disbursement transactions. Also, there is more than the finance director who has access to the OuickBooks using the same password. Criteria There should be a segregation of duties related to cash receipt and cash disbursement transactions. The access to OuickBooks should be limited to the finance director. Cause There is a small office staff with a limited ability to have segregation of duties and more than one individual had access to the OuickBooks accounting software using the same password. Effect There is a weakness in internal control over cash receipts and cash disbursements when there is a lack of segregation of duties and more than one individual has access to the OuickBooks accounting software using the same password. Recommendation We recommend that procedures be put in place so that more than the finance director is involved in the cash receipt and disbursement process. Also, we recommend that only the finance director have access to OuickBooks. -