FAC Explorer

Audit 9922

FY End
2022-12-31
Total Expended
$1.03M
Findings
4
Programs
2
Organization: Horsham Township (PA)
Year: 2022 Accepted: 2024-01-05
Auditor: Bee Bergvall & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7579 2022-001 Material Weakness - L
7580 2022-002 Material Weakness - L
584021 2022-001 Material Weakness - L
584022 2022-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $848,064 Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $183,561 - 0

Contacts

Name Title Type
H9SNAFZLJPZ5 Susan Zepp Auditee
2156433131 Anastasia Devlin Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Horsham Township, Pennsylvania under programs of the federal government for the year ended December 31, 2022. 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 Horsham Township, Pennsylvania, it is not intended to and does not present the financial position, change in net assets, or cash flows of Horsham Township, Pennsylvania. (1)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. (2)Pass-through entity identifying numbers are presented where available. (3)Horsham Township, Pennsylvania has elected not to use the 10% de minimis cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Horsham Township, Pennsylvania has elected not to use the 10% de minimis cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001
Criteria and Condition: Cash accounts should be reconciled each month, on a timely basis, and corrections should be recorded in the general ledger. Context: For the year ended December 31, 2022, the bank reconciliations were not completed until September 19, 2023, and the correcting entries were not posted to the general ledger accounts. Cause: Due to the turnover in staff and upper management, the Entity did not complete timely reconciliations of bank accounts, and corrections and or adjustments were not posted to the general ledger. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Entity implement a policy to have the bank reconciliations completed and approved within 15 days of month-end. Also, all correcting entries identified should be posted to the general ledger. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of following good financial practices. We now have sufficient staff in order to perform the necessary bank reconciliations, ledger adjustments and correcting entries so that we don’t take a chance on having any errors in financial reporting. We will follow the recommendation of the Audit.
Finding 2022-002
Criteria and Condition: While the Entity 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. Cause: Due to the turnover in staff and upper management, the Entity did not comply with this requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Entity 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 and have sufficient staff to comply. We will follow the recommendation of the Audit.
Finding 2022-001
Criteria and Condition: Cash accounts should be reconciled each month, on a timely basis, and corrections should be recorded in the general ledger. Context: For the year ended December 31, 2022, the bank reconciliations were not completed until September 19, 2023, and the correcting entries were not posted to the general ledger accounts. Cause: Due to the turnover in staff and upper management, the Entity did not complete timely reconciliations of bank accounts, and corrections and or adjustments were not posted to the general ledger. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Entity implement a policy to have the bank reconciliations completed and approved within 15 days of month-end. Also, all correcting entries identified should be posted to the general ledger. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of following good financial practices. We now have sufficient staff in order to perform the necessary bank reconciliations, ledger adjustments and correcting entries so that we don’t take a chance on having any errors in financial reporting. We will follow the recommendation of the Audit.
Finding 2022-002
Criteria and Condition: While the Entity 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. Cause: Due to the turnover in staff and upper management, the Entity did not comply with this requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Entity 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 and have sufficient staff to comply. We will follow the recommendation of the Audit.