Audit 363889

FY End
2024-12-31
Total Expended
$3.59M
Findings
12
Programs
6
Organization: City of Johnstown (PA)
Year: 2024 Accepted: 2025-08-07
Auditor: Wessel & Company

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
573021 2024-003 Material Weakness - L
573022 2024-003 Material Weakness - L
573023 2024-003 Material Weakness - L
573024 2024-003 Material Weakness - L
573025 2024-004 Material Weakness Yes I
573026 2024-004 Material Weakness Yes I
1149463 2024-003 Material Weakness - L
1149464 2024-003 Material Weakness - L
1149465 2024-003 Material Weakness - L
1149466 2024-003 Material Weakness - L
1149467 2024-004 Material Weakness Yes I
1149468 2024-004 Material Weakness Yes I

Contacts

Name Title Type
XBNQXGRF1YJ9 Melissa Millard Auditee
8145392504 Michael Lamb Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: For the year ended December 31, 2024, the City of Johnstown did not elect to use the 10% de minimum indirect rate as allowed in the Uniform Guidance, section 414. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the City of Johnstown under programs of the federal government for the year ended December 31, 2024. 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 City of Johnstown, it is not intended to and does not present the financial position, changes in net assets or cash flows of the City of Johnstown.
Title: Summary of Significant Acccounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: For the year ended December 31, 2024, the City of Johnstown did not elect to use the 10% de minimum indirect rate as allowed in the Uniform Guidance, section 414. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: For the year ended December 31, 2024, the City of Johnstown did not elect to use the 10% de minimum indirect rate as allowed in the Uniform Guidance, section 414. The City of Johnstown provided federal awards to one subrecipient that administers the program on behalf of City, as follows: Program Title: Community Development Block Grant Subrecipient: YMCA Federal ALN: 14.218 Amount Provided: $10,000.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: For the year ended December 31, 2024, the City of Johnstown did not elect to use the 10% de minimum indirect rate as allowed in the Uniform Guidance, section 414. For the year ended December 31, 2024, the City of Johnstown did not elect to use the 10% de minimum indirect rate as allowed in the Uniform Guidance, section 414.

Finding Details

INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COVID-19 - Coronavirus State and Local Fiscal Relief Funds - 21.027 2024-004 - Procurement Criteria: The City is responsible for establishing and maintaining a procurement policy which is compliant with the Uniform Guidance in 2 CFR 200.320. In addition, the City is responsible for maintaining adequate records relating to procurements. Condition: The City's procurement policy lacks the specific methods of procurement to be followed and the respective thresholds for procurements using federal funds. Furthermore, there is not adequate pre-award documentation maintained relating to each of the City's procurements. Cause: The City's procurement policy was not adequately updated with necessary Uniform Guidance requirements. In addition, the City's procurement process is not centralized and there is inadequate or missing pre-award documentation pertaining to the City's various procurements. Effect: The condition above could result in material program and internal control issues relating to procurements whereby: appropriate methods of procurement may not be followed, debarred or suspended vendors or contractors could be awarded purchase orders or contracts, open and fair competition may not be achieved, etc. Context: Audit procedures noted that the procurement policy is inadequate and not in line with Uniform Guidance. Furthermore, audit procedures noted that there is not centralized process in place for tracking the City's various procurements along with the necessary pre-award documentation. There was a total of $1,194,777 of expenditures incurred during the year ended December 31, 2024 for which procurements would have been made in the current year or prior years. Questioned Costs: We questioned $1,194,777 of costs because this was the total that was expended during the year ended December 31, 2024, for goods or services for which procurement policies should have been followed. Our testing surrounding procurement in the current year noted that there was not a proper procurement policy in place that would permit the testing of procurements made during the year. Recommendation: We recommend that the City adopt a proper procurement policy that is in line with Uniform Guidance. We further recommend that the City develops a centralized procurement process whereby appropriate procurement type is documented along with the maintenance of proper pre-award documentation.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COVID-19 - Coronavirus State and Local Fiscal Relief Funds - 21.027 2024-004 - Procurement Criteria: The City is responsible for establishing and maintaining a procurement policy which is compliant with the Uniform Guidance in 2 CFR 200.320. In addition, the City is responsible for maintaining adequate records relating to procurements. Condition: The City's procurement policy lacks the specific methods of procurement to be followed and the respective thresholds for procurements using federal funds. Furthermore, there is not adequate pre-award documentation maintained relating to each of the City's procurements. Cause: The City's procurement policy was not adequately updated with necessary Uniform Guidance requirements. In addition, the City's procurement process is not centralized and there is inadequate or missing pre-award documentation pertaining to the City's various procurements. Effect: The condition above could result in material program and internal control issues relating to procurements whereby: appropriate methods of procurement may not be followed, debarred or suspended vendors or contractors could be awarded purchase orders or contracts, open and fair competition may not be achieved, etc. Context: Audit procedures noted that the procurement policy is inadequate and not in line with Uniform Guidance. Furthermore, audit procedures noted that there is not centralized process in place for tracking the City's various procurements along with the necessary pre-award documentation. There was a total of $1,194,777 of expenditures incurred during the year ended December 31, 2024 for which procurements would have been made in the current year or prior years. Questioned Costs: We questioned $1,194,777 of costs because this was the total that was expended during the year ended December 31, 2024, for goods or services for which procurement policies should have been followed. Our testing surrounding procurement in the current year noted that there was not a proper procurement policy in place that would permit the testing of procurements made during the year. Recommendation: We recommend that the City adopt a proper procurement policy that is in line with Uniform Guidance. We further recommend that the City develops a centralized procurement process whereby appropriate procurement type is documented along with the maintenance of proper pre-award documentation.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS 14.218 2024-003 - REPORTING Criteria: HUD Quarterly reports are due no later than thirty days after the end of each quarter. Condition: During our testing we noted that three quarterly reports were submitted late as follows: Reporting Period: April 1, 2024 - June 30, 2024/ Due Date: July 30, 2024/ Submission Date: August 23, 2024 Reporting Period: July 1, 2024 - September 30, 2024/ Due Date: October 30, 2024/ Submission Date: January 31, 2025 Reporting Period: October 1, 2024 - December 31, 2024/ Due Date: January 30, 2025/ Submission Date: February 19, 2025 Cause: Reports were not prepared and submitted timely. Effect: The City did not submit the quarterly reports timely. Context: There was turnover during 2024 and there was not adequate cross training in place among the staff to ensure that program reporting deadlines were met. Questioned Costs: None noted. Recommendation: We recommend that the City prepares a listing of required reports and related due dates and designates a manager level employee to monitor the report submission and ensure that reports are submitted in a timely manner.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COVID-19 - Coronavirus State and Local Fiscal Relief Funds - 21.027 2024-004 - Procurement Criteria: The City is responsible for establishing and maintaining a procurement policy which is compliant with the Uniform Guidance in 2 CFR 200.320. In addition, the City is responsible for maintaining adequate records relating to procurements. Condition: The City's procurement policy lacks the specific methods of procurement to be followed and the respective thresholds for procurements using federal funds. Furthermore, there is not adequate pre-award documentation maintained relating to each of the City's procurements. Cause: The City's procurement policy was not adequately updated with necessary Uniform Guidance requirements. In addition, the City's procurement process is not centralized and there is inadequate or missing pre-award documentation pertaining to the City's various procurements. Effect: The condition above could result in material program and internal control issues relating to procurements whereby: appropriate methods of procurement may not be followed, debarred or suspended vendors or contractors could be awarded purchase orders or contracts, open and fair competition may not be achieved, etc. Context: Audit procedures noted that the procurement policy is inadequate and not in line with Uniform Guidance. Furthermore, audit procedures noted that there is not centralized process in place for tracking the City's various procurements along with the necessary pre-award documentation. There was a total of $1,194,777 of expenditures incurred during the year ended December 31, 2024 for which procurements would have been made in the current year or prior years. Questioned Costs: We questioned $1,194,777 of costs because this was the total that was expended during the year ended December 31, 2024, for goods or services for which procurement policies should have been followed. Our testing surrounding procurement in the current year noted that there was not a proper procurement policy in place that would permit the testing of procurements made during the year. Recommendation: We recommend that the City adopt a proper procurement policy that is in line with Uniform Guidance. We further recommend that the City develops a centralized procurement process whereby appropriate procurement type is documented along with the maintenance of proper pre-award documentation.
INTERNAL CONTROL - MATERIAL WEAKNESS AND NONCOMPLIANCE COVID-19 - Coronavirus State and Local Fiscal Relief Funds - 21.027 2024-004 - Procurement Criteria: The City is responsible for establishing and maintaining a procurement policy which is compliant with the Uniform Guidance in 2 CFR 200.320. In addition, the City is responsible for maintaining adequate records relating to procurements. Condition: The City's procurement policy lacks the specific methods of procurement to be followed and the respective thresholds for procurements using federal funds. Furthermore, there is not adequate pre-award documentation maintained relating to each of the City's procurements. Cause: The City's procurement policy was not adequately updated with necessary Uniform Guidance requirements. In addition, the City's procurement process is not centralized and there is inadequate or missing pre-award documentation pertaining to the City's various procurements. Effect: The condition above could result in material program and internal control issues relating to procurements whereby: appropriate methods of procurement may not be followed, debarred or suspended vendors or contractors could be awarded purchase orders or contracts, open and fair competition may not be achieved, etc. Context: Audit procedures noted that the procurement policy is inadequate and not in line with Uniform Guidance. Furthermore, audit procedures noted that there is not centralized process in place for tracking the City's various procurements along with the necessary pre-award documentation. There was a total of $1,194,777 of expenditures incurred during the year ended December 31, 2024 for which procurements would have been made in the current year or prior years. Questioned Costs: We questioned $1,194,777 of costs because this was the total that was expended during the year ended December 31, 2024, for goods or services for which procurement policies should have been followed. Our testing surrounding procurement in the current year noted that there was not a proper procurement policy in place that would permit the testing of procurements made during the year. Recommendation: We recommend that the City adopt a proper procurement policy that is in line with Uniform Guidance. We further recommend that the City develops a centralized procurement process whereby appropriate procurement type is documented along with the maintenance of proper pre-award documentation.