FAC Explorer

Audit 369555

FY End
2024-12-31
Total Expended
$4.94M
Findings
2
Programs
2
Organization: Ellwood City Borough (PA)
Year: 2024 Accepted: 2025-09-30
Auditor: Turnley Robertson & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1157233 2024-001 Material Weakness Yes L
1157234 2024-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
66.458 Clean Water State Revolving Fund $3.39M Yes 1
14.239 Home Investment Partnerships Program $136,211 Yes 0

Contacts

Name Title Type
PL71FDRCHK46 Kevin Swogger Auditee
7247587777 Mark Turnley Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the ‘Schedule’) includes the federal grant activity administered by the Borough of Ellwood City 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 Grant Guidance – UGG). Because the Schedule presents only a selected portion of the operations of the Borough of Ellwood City, it is not intended to and does not present the financial position or changes in net position of the Borough of Ellwood City.
Federal loan proceeds received from the Pennsylvania Infrastructure Investment Authority are recorded as part of long-term liabilities – Note Payable (PENNVEST) in the accompanying financial statements (Exhibit A and H). Federal principal forgiveness (grant) proceeds received from the Pennsylvania Infrastructure Investment Authority are recorded as revenue in the accompanying financial statements (Exhibit I). Grant proceeds received from the U.S. Department of Housing and Urban Development are recognized as part of General Fund intergovernmental revenue in the accompanying financial statements (Exhibit E and G).

Finding Details

Finding 2024-001
CONDITION: During my review of the Borough of Ellwood City’s internal controls over federal awards, I noted that the Borough 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. This is a repeat finding (2023-001) from the prior year.CRITERIA: Section 2 CFR 200.303 of the Uniform Guidance requires non-federal entities such as the Borough of Ellwood City 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 Borough of Ellwood City 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: NoneCAUSE: It was not readily determinable as to why the Borough of Ellwood City had not formally adopted written policies and procedures surrounding the management of their federal award funds.RECOMMENDATION: I recommend that the Borough of Ellwood City 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 Borough 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: The Borough of Ellwood City concurs with the above noted finding and addresses this issue in the ‘Corrective Action Plan’ included within this report.