Audit 371314

Criteria and Condition: There is a lack of segregation of duties over financial reporting. Context: There is not a sufficient control environment over recording transactions and over detective controls. Cause: Due to the size of staff, there is a lack of segregation of duties. Potential Effect: Errors could occur in financial reporting. Recommendation: Someone independent of the bookkeeping function should review financial records to establish a segregation of duties. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of segregation of duties. Borough of Collegeville will ensure work on establishing segregation going forward.

Material Weakness Reporting Criteria and Condition: While the Organization has some written financial management procedures documentation, it does not meet all the recent specific requirements under 2 CFR 200.302 in the Uniform Grant Guidance. Context: The financial management requirements under 2 CFR 200.302 require each non-federal entity maintain effective control over, and accountability for all funds, property, and other assets, including having written procedures in place. Key changes which effect the Organization include: Increased documentation, time and effort reporting for payroll, and specific purchasing consideration. Cause: The Borough did not implement adequate controls to ensure compliance with this reporting requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Organization update its existing policies to comply with the requirements under 2 CFR 200.302. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302. Borough of Collegeville will implement these policies and procedures to ensure that the organization will comply going forward.

Material Weakness Reporting Criteria and Condition: Timely financial reporting was not followed. Context: The Single Audit and Data Collection Form was not timely filed Cause: The Borough did not implement adequate controls to ensure compliance with this reporting requirement. Potential Effect: The Borough could lose funding sources due to lack of timely filing. Recommendation: Timely financial reporting for grant requirements should be followed. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of complying with grant reporting requirements.