FAC Explorer

Audit 397189

FY End
2025-06-30
Total Expended
$3.07M
Findings
1
Programs
4
Organization: Susquehanna Workforce Network INC (MD)
Year: 2025 Accepted: 2026-03-31
Auditor: WEYRICH CRONIN & SORRA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1205506 2025-002 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.23M Yes 1
17.259 WIOA YOUTH ACTIVITIES $617,094 Yes 0
17.258 WIOA ADULT PROGRAM $245,464 Yes 0
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $44,473 Yes 0

Contacts

Name Title Type
QL1MXEBDER95 Kimberly Justus Auditee
4109394240 Angeline White Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Susquehanna Workforce Network, Inc. (the Network) under programs of the federal government for the year ended June 30, 2025. 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 Network, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Network.
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.
Susquehanna Workforce Network, Inc. has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Amounts reported in the accompanying Schedule agree with amounts reported in the Network’s financial statements and the related federal financial reports submitted by the Network except as indicated below. Federal revenues per the financial statements are reconciled to the Schedule as follows: SEE NOTES TO THE SEFA FOR CHART.
Of the federal expenditures presented in the Schedule, the Network provided federal awards to subrecipients as follows: SEE NOTES TO THE SEFA FOR CHART

Finding Details

Finding 2025-002
Significant Deficiencies Federal Program: U.S. Department of Treasury Pass-Through from Maryland Department of Labor Major Program: Coronavirus State and Local Fiscal Recovery Funds (21.027) Finding 2025 - 002: Transactions Improperly Recorded - Allowable Costs Criteria: 2 CFR Part 200.403(e) requires that costs should be determined in accordance with generally accepted accounting principles for such charges to be allowable under federal awards. Generally accepted accounting principles require expenses to be recognized when incurred. Prepaid annual services should be recognized ratably over the contract period. In addition, 2 CFR Part 200.334 requires recipients to maintain financial records sufficient to show compliance with federal statues, regulations, and terms and conditions of the award. Condition: During our audit we identified certain transactions that were improperly expensed in their entirety in the fiscal year. Context: A review of 40 disbursements totaling $570,943 noted three transactions totaling $4,291 that were improperly expensed entirely in the current year. A portion of these transactions should have been accrued as prepaid expenses. Cause: The three invoices were not properly reviewed for the effective term of the contract. Management therefore did not consider the portion of the contract that extended into the next fiscal year to determine which amounts should have been deferred into the upcoming year. Effect: Costs could be deemed unallowable by the awarding agency if not recorded in the proper period in accordance with generally accepted accounting principles. Questioned Costs: $2,182 of known costs charged to federal awards outside of the proper period. Recommendation: We recommend that management adequately review service contracts paying particular attention to the service period. When the contract extends into the subsequent fiscal year an adjustment should be made to reclassify as a prepaid any portion of the contract that falls outside the current fiscal year end. View of Responsible Officials and Planned Corrective Action: We are in agreement with the finding and will extra care to review service invoices to ensure expenses are allocated between periods properly.