Audit 38912

FY End
2022-08-31
Total Expended
$1.61M
Findings
6
Programs
1
Organization: Zelienople Airport Authority (PA)
Year: 2022 Accepted: 2023-05-29
Auditor: Holsinger PC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
41889 2022-001 Material Weakness - P
41890 2022-001 Material Weakness - P
41891 2022-001 Material Weakness - P
618331 2022-001 Material Weakness - P
618332 2022-001 Material Weakness - P
618333 2022-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $23,000 Yes 1

Contacts

Name Title Type
FG57UEJ9AGL4 Diane Miller Auditee
7244524719 Tom Krahe Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized as incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority treats withheld retainage as an unallowable cost until the amount is paid, whereby it is then recognized as a federal expenditure - unless otherwise permitted by Federal Statute - in accordance with 2 CFR Subpart D Section 200.305(b)(6)(iv). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Authority under programs of the federal government for the year ended August 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR), 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 Authority, it is not intended to and does not present the statement of net position, statement of revenues, expenses and changes in net position, or cash flows of the Authority.
Title: Note 4 - Subrecipients Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized as incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority treats withheld retainage as an unallowable cost until the amount is paid, whereby it is then recognized as a federal expenditure - unless otherwise permitted by Federal Statute - in accordance with 2 CFR Subpart D Section 200.305(b)(6)(iv). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Of the federal expenditures presented in the Schedule, the Authority did not provide federal awards to a subrecipient.
Title: Note 5 - Budgetary Data Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized as incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority treats withheld retainage as an unallowable cost until the amount is paid, whereby it is then recognized as a federal expenditure - unless otherwise permitted by Federal Statute - in accordance with 2 CFR Subpart D Section 200.305(b)(6)(iv). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority passed and had approved by the appropriate agency, budgets for the year ended August 31, 2022 for the federal programs.
Title: Note 6 - Contingency Accounting Policies: Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized as incurred following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Authority treats withheld retainage as an unallowable cost until the amount is paid, whereby it is then recognized as a federal expenditure - unless otherwise permitted by Federal Statute - in accordance with 2 CFR Subpart D Section 200.305(b)(6)(iv). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The grant revenue amounts received and expensed are subjected to audit and adjustment. If any expenditures are disallowed by the grantor as a result of such an audit, any claim for reimbursement to the grantor would become a liability of the Authority. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.

Finding Details

FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.
FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.
FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.
FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.
FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.
FINDINGS AND QUESTIONED COSTS - FINANCIAL STATEMENT AUDIT 2022-001 Material Weakness ? Prior Period Adjustment Condition: The Authority?s underlying fixed asset records did not agree with physical fixed asset existence, resulting in a prior period adjustment. Criteria: Fixed asset account balances on the trial balance should agree with underlying supporting schedules and physical fixed asset existence. Cause: Upon sale of a fixed asset in the prior period, the Authority recorded the proceeds from the sale but did not relieve the fixed asset and corresponding accumulated depreciation from the trial balance or from the underlying fixed asset records. Effect: The discover of the error in the current period resulted in a prior period adjustment, in which the Authority corrected the affected account balances and underlying supporting schedules to agree with physical fixed asset existence. See Note 6 to the financial statements for further information. Recommendation: The Authority should perform a physical fixed asset observation on an annual basis to ensure physical fixed assets are accurately reflected in the underlying supporting schedules. Additionally, the underlying supporting schedules should be reconciled to the trial balance on an annual basis. Views of Responsible Officials: The Authority agrees with the finding and will implement internal procedures to perform annual fixed asset observations to ensure physical fixed assets agree with underlying supporting schedules, which will be reconciled to the trial balance on an annual basis.