FAC Explorer

Audit 357027

FY End
2023-12-31
Total Expended
$1.90M
Findings
2
Programs
2
Organization: City of New Kensington (PA)
Year: 2023 Accepted: 2025-05-23
Auditor: Jmallc

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561440 2023-004 Significant Deficiency - ABGHILM
1137882 2023-004 Significant Deficiency - ABGHILM

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.29M Yes 1
14.228 Community Development Block Grant $38,500 - 0

Contacts

Name Title Type
FXAQMHSH2RU3 Dennis Scarpiniti Auditee
7243374523 Chad Agnew Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 – BASIS OF ACCOUNTING Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of New Kensington and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Did not use de minimus cost rate The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of New Kensington and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE 2 – BUDGETARY DATA Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of New Kensington and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Did not use de minimus cost rate The City passed and had approved by the appropriate agency budgets for the fiscal year ending December 31, 2023 for all federal programs.
Title: NOTE 3 – DE MINIMUS RATE FOR INDIRECT COSTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City of New Kensington and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Did not use de minimus cost rate The City of New Kensington has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-004
Criteria: The small size of the City’s office staff limits the extent of separation of duties. The basic premise of an ideal accounting office is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition: The City has a limited number of staff responsible for or access to various stages of the accounting processes. Cause: The City does not have the number of employees necessary in the business office to segregate all duties properly. Recommendation: Ideally, the City would hire the number of staff necessary to segregate all duties. However, we realize this is not practical, if not impossible. Because of this internal control situation, the responsibility of the management is greatly increased because the City Council must rely on his/her knowledge of everyday operations to discover any material changes in the City’s financial position. Effect: A lack of separation of duties makes the City more susceptible to misappropriation of City Assets.
Finding 2023-004
Criteria: The small size of the City’s office staff limits the extent of separation of duties. The basic premise of an ideal accounting office is that no one employee should have access to both physical assets and the related accounting records or to all phases of a transaction. Condition: The City has a limited number of staff responsible for or access to various stages of the accounting processes. Cause: The City does not have the number of employees necessary in the business office to segregate all duties properly. Recommendation: Ideally, the City would hire the number of staff necessary to segregate all duties. However, we realize this is not practical, if not impossible. Because of this internal control situation, the responsibility of the management is greatly increased because the City Council must rely on his/her knowledge of everyday operations to discover any material changes in the City’s financial position. Effect: A lack of separation of duties makes the City more susceptible to misappropriation of City Assets.