FAC Explorer

Audit 365393

FY End
2023-12-31
Total Expended
$1.35M
Findings
24
Programs
4
Organization: Eldred Borough (NY)
Year: 2023 Accepted: 2025-09-02
Auditor: Buffmante Whipple Buttafaro PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575337 2023-003 Material Weakness - L
575338 2023-003 Material Weakness - L
575339 2023-003 Material Weakness - L
575340 2023-003 Material Weakness - L
575341 2023-004 Material Weakness - L
575342 2023-004 Material Weakness - L
575343 2023-004 Material Weakness - L
575344 2023-004 Material Weakness - L
575345 2023-005 Material Weakness - P
575346 2023-005 Material Weakness - P
575347 2023-005 Material Weakness - P
575348 2023-005 Material Weakness - P
1151779 2023-003 Material Weakness - L
1151780 2023-003 Material Weakness - L
1151781 2023-003 Material Weakness - L
1151782 2023-003 Material Weakness - L
1151783 2023-004 Material Weakness - L
1151784 2023-004 Material Weakness - L
1151785 2023-004 Material Weakness - L
1151786 2023-004 Material Weakness - L
1151787 2023-005 Material Weakness - P
1151788 2023-005 Material Weakness - P
1151789 2023-005 Material Weakness - P
1151790 2023-005 Material Weakness - P

Programs

ALN Program Spent Major Findings
66.458 Capitalization Grants for Clean Water State Revolving Funds - Wastewater Treatment Plant Upgrades $1.17M Yes 3
66.458 Capitalization Grants for Clean Water State Revolving Funds - Wastewater Treatment Plant Upgrades Architect and Engineering $103,727 Yes 3
66.458 Capitalization Grants for Clean Water State Revolving Funds - Sanitary Sewer Replacement Architect and Engineering $43,391 Yes 3
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $38,637 - 3

Contacts

Name Title Type
SFCEGALWNBU3 Lisa Hannahs Auditee
8142254777 David V Ditanna, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Accounting Policies: Reporting Entity - Eldred Borough, Pennsylvania is incorporated under the laws of the Commonwealth of Pennsylvania in 1880. The Borough was established to provide public works, road maintenance, public safety, water, sewer and garbage services to the residents and taxpayers of the Borough. It is governed by the Borough Council and its service area is located in Eldred, Pennsylvania. Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Eldred Borough, Pennsylvania and is presented on the cash basis of accounting. The information in the 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 of Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic Schedule. Basis of Accounting - The Schedule is prepared using the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Under the cash basis of accounting, expenditures of federal awards are recognized when paid rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. Reporting Entity - Eldred Borough, Pennsylvania is incorporated under the laws of the Commonwealth of Pennsylvania in 1880. The Borough was established to provide public works, road maintenance, public safety, water, sewer and garbage services to the residents and taxpayers of the Borough. It is governed by the Borough Council and its service area is located in Eldred, Pennsylvania. Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Eldred Borough, Pennsylvania and is presented on the cash basis of accounting. The information in the 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 of Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic Schedule. Basis of Accounting - The Schedule is prepared using the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Under the cash basis of accounting, expenditures of federal awards are recognized when paid rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance.
Title: Note 2 - Indirect Cost Rate Accounting Policies: Reporting Entity - Eldred Borough, Pennsylvania is incorporated under the laws of the Commonwealth of Pennsylvania in 1880. The Borough was established to provide public works, road maintenance, public safety, water, sewer and garbage services to the residents and taxpayers of the Borough. It is governed by the Borough Council and its service area is located in Eldred, Pennsylvania. Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Eldred Borough, Pennsylvania and is presented on the cash basis of accounting. The information in the 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 of Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic Schedule. Basis of Accounting - The Schedule is prepared using the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Under the cash basis of accounting, expenditures of federal awards are recognized when paid rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. The Borough has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year.
Title: Note 3 - Project Financing Accounting Policies: Reporting Entity - Eldred Borough, Pennsylvania is incorporated under the laws of the Commonwealth of Pennsylvania in 1880. The Borough was established to provide public works, road maintenance, public safety, water, sewer and garbage services to the residents and taxpayers of the Borough. It is governed by the Borough Council and its service area is located in Eldred, Pennsylvania. Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Eldred Borough, Pennsylvania and is presented on the cash basis of accounting. The information in the 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 of Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of the basic Schedule. Basis of Accounting - The Schedule is prepared using the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Under the cash basis of accounting, expenditures of federal awards are recognized when paid rather than when the obligation is incurred. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Borough has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance in the current year. The Borough received federal funding for the Wastewater Treatment Plant Upgrades and associated Architectual and Engineering services through the Capitalization Grants for Clean Water State Revolving Funds, administered by the Pennsylvania Infrastructure Investment Authority. These awards consist of both loan and non-repayable (grant) components. The loan portions will be deferred and will not require repayment until project completion, in accordance with program guidelines.

Finding Details

Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-003
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-004
Compliance and Other Matters Year Ended December 31, 2023 Untimely Single Audit Filing Condition and criteria: The Borough did not submit their Single Audit Report for the fiscal year ended December 31, 2023 within nine months of the fiscal year end, as required by the Uniform Guidance (2 CFR § 200.512), resulting in a delinquent submission. Cause and Effect: There were inadequate internal controls in place regarding the audit process to ensure that timely submissions of the Single Audit report would be met. The delinquency may lead to the suspension or termination of federal funding, as well as potential penalties or corrective actions from the funding agency. Auditor’s Recommendations: The Borough should establish a system to closely monitor Single Audit deadlines, designate clear responsibilities for the audit process, and proactively communicate with the auditor to ensure timely completion and submission of the report. Borough’s Response: Eldred Borough was unable to contract a CPA to perform the single audit. This process included months of phone calls and emails to over 30 CPA and Accounting Forms across the State of Pennsylvania. The Borough has since contracted with a CPA firm to perform the 2024 single audit and do not anticipate it being delayed in submission.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.
Finding 2023-005
Internal Control over Schedule of Expenditures of Federal Awards Year Ended December 31, 2023 Segregation of Duties Condition and criteria: During our audit of the Borough’s Schedule of Expenditures of Federal Awards, we noted that the Borough does not have adequate segregation of duties in place. Specifically, the same individual is responsible for initiating and recording journal entries and disbursements and reconciling the bank accounts. In accordance with 2 CFR § 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Cause and Effect: The Borough is a small entity with limited administrative and accounting staff, which makes it difficult to achieve a complete segregation of duties. Due to resource constraints, individual staff members are assigned multiple roles that overlap key financial processes. Without proper segregation of duties, there is an increased risk that errors or irregularities, including potential misappropriation of assets or fraud, could occur and remain undetected. This condition could lead to noncompliance with applicable federal requirements and inaccuracies in financial reporting. Auditor’s Recommendations: We recommend that Eldred Borough assess the current structure and implement compensating controls where full segregation of duties is not feasible due to staffing limitations. These may include enhanced supervisory review, periodic oversight by the board or executive leadership, documentation of independent reviews, and rotation of duties when possible. Borough’s Response: Eldred Borough has board oversight and will continue to do so. The Borough employees do cover duties of the other employee when necessary and will continue to do so. Bank Reconciliations will be signed by Council. Pay Requisitions are signed by Council and will continue to do so.