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Corrective Action Plans

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Finding 538269 (2022-001)
Significant Deficiency 2022
Clinton Ecumenical Housing INC
IA
HUD Housing Programs
The Executive Director agreed with the recommendation to make surplus cash deposits into the Organization's residual receipts reserve account in a timely manner in the future in accordance with their HUD agreement.
The Executive Director agreed with the recommendation to make surplus cash deposits into the Organization's residual receipts reserve account in a timely manner in the future in accordance with their HUD agreement.
View Audit 349263
Finding 538268 (2022-001)
Significant Deficiency 2022
Clinton Ecumenical North INC
IA
HUD Housing Programs
The Executive Director agreed with the recommendation to make surplus cash deposits into the Organization's residual receipts reserve account in a timely manner in the future in accordance with their HUD agreement.
The Executive Director agreed with the recommendation to make surplus cash deposits into the Organization's residual receipts reserve account in a timely manner in the future in accordance with their HUD agreement.
View Audit 349260
Finding 538206 (2022-003)
Significant Deficiency 2022
Palmetto Aids Life Support Services, Inc.
SC
Procurement, Suspension & Debarment
PALSS began correcting its procurement policies in FY 2025 to include sole source procurement and the need to have only one quote for purchases under $10,000. Purchases above $10,000 will need three quotes.
PALSS began correcting its procurement policies in FY 2025 to include sole source procurement and the need to have only one quote for purchases under $10,000. Purchases above $10,000 will need three quotes.
View Audit 349212
Finding 538204 (2022-002)
Material Weakness 2022
Palmetto Aids Life Support Services, Inc.
SC
Procurement, Suspension & Debarment
PALSS currently has a procurement policy that was updated in 2024. In our updated policy, purchases below $10,000 only need one quote. Purchases above $10,000 will need three quotes. This policy also follows our state procurement guidelines.
PALSS currently has a procurement policy that was updated in 2024. In our updated policy, purchases below $10,000 only need one quote. Purchases above $10,000 will need three quotes. This policy also follows our state procurement guidelines.
View Audit 349212
Finding 537926 (2022-004)
Material Weakness 2022
Municipality of Camuy
PR
Subrecipient Monitoring Material Weakness Reporting
Management concurs with the finding. We will enforce and continue strengthening control over financial reporting and enforce procedures to reconcile information of accounting balances, transactions, and ARPA annual report (Project and Expenditure Report), in order to prevent future differences.
Management concurs with the finding. We will enforce and continue strengthening control over financial reporting and enforce procedures to reconcile information of accounting balances, transactions, and ARPA annual report (Project and Expenditure Report), in order to prevent future differences.
View Audit 348980
Finding 537925 (2022-003)
Material Weakness 2022
Municipality of Camuy
PR
Reporting Material Weakness Matching / Level of Effort / Earmarking
Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communica-tion between the accounting finance office and the office of compliance...
Management concurs with the finding. We will monitor our internal control activities directly related to the financial accounting of state funds and federal funds. We will implement procedures for improving information communica-tion between the accounting finance office and the office of compliance so rec-ords are reconciled and are available on time for audit financial statements, including Single Audit.
View Audit 348980
Deep East Texas Electric Coop
TX
Reporting
Finding 2022-001 Auditee concurs with this finding and this reporting will complete the requirement to file the single audit and submit the reporting package to the audit clearinghouse. Contact Person: Kelly Hays, Accounting Supervisor. Timeframe: Submission to be completed by March 2025.
Finding 2022-001 Auditee concurs with this finding and this reporting will complete the requirement to file the single audit and submit the reporting package to the audit clearinghouse. Contact Person: Kelly Hays, Accounting Supervisor. Timeframe: Submission to be completed by March 2025.
View Audit 348732
Finding 537267 (2022-001)
Material Weakness 2022
McKinleyville Community Services District
CA
Reporting
The District’s Finance Director will update its standard operating procedures to accurately record and report all transactions. Thereafter, management and the manager of finance and administration plan to review all account balances for certain relationships, proper cut-off, and accuracy.
The District’s Finance Director will update its standard operating procedures to accurately record and report all transactions. Thereafter, management and the manager of finance and administration plan to review all account balances for certain relationships, proper cut-off, and accuracy.
View Audit 348498
Finding 530121 (2022-005)
Material Weakness 2022
Healthsource Saginaw, Inc.
MI
Material Weakness Reporting Matching / Level of Effort / Earmarking
Finding Number: 2022-005 Condition: HealthSource's controls in place for reporting submissions did not identify that guidelines were not followed related to the lost revenue calculations. Planned Corrective Action: All future submissions will be reviewed with CEO and President for accuracy and thoro...
Finding Number: 2022-005 Condition: HealthSource's controls in place for reporting submissions did not identify that guidelines were not followed related to the lost revenue calculations. Planned Corrective Action: All future submissions will be reviewed with CEO and President for accuracy and thoroughness prior to submission upload. Contact person responsible for corrective action: Sonja Martinez, Chief Financial Officer Anticipated Completion Date: 12/31/2024
View Audit 348199
Finding 530120 (2022-004)
Material Weakness 2022
Healthsource Saginaw, Inc.
MI
Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.303
Condition: HealthSource does not have a review process in place related to the lost revenue calculation used to input into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program and not having a review process in place over the fo...
Condition: HealthSource does not have a review process in place related to the lost revenue calculation used to input into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program and not having a review process in place over the forementioned required submissions. Planned Corrective Action: A review of all updates to Covid lost revenue will be performed with the CEO and President as indicated by new activity, and before any submissions are uploaded. Contact person responsible for corrective action: Sonja Martinez, Chief Financial Officer Anticipated Completion Date: 12/31/2024
View Audit 348199
Finding 530096 (2022-002)
Significant Deficiency 2022
Pasadena Symphony Association
CA
Allowable Costs / Cost Principles Reporting Significant Deficiency § 200.303
Corrective Action Plan: In the time since the initial audit was due at the end of 2022, the organization experienced a substantial turnover in its senior administrative leadership team. I was engaged as the new Chief Executive Officer in November 2023, and have since hired a new General Manager, Dir...
Corrective Action Plan: In the time since the initial audit was due at the end of 2022, the organization experienced a substantial turnover in its senior administrative leadership team. I was engaged as the new Chief Executive Officer in November 2023, and have since hired a new General Manager, Director of Development, and worked closely with our accounting firm, who was engaged to replace the original CFO, after her retirement in 2022. Since this new team has assumed leadership, we have transitioned to new accounting and billing software platforms and developed or renewed policies and procedures that have improved monitoring, tracking, approval, and reporting procedures for all expenditures and revenues, across the organization. We have also upgraded to a cloud-based server/filesharing system and reorganized the filing and archival systems and procedures to ensure that files and documents are organized more clearly and more accessibly for key staff members, current and into the future. Anticipated Completion Date: Already implemented.
View Audit 348149
Finding 530095 (2022-001)
Significant Deficiency 2022
Pasadena Symphony Association
CA
Internal Control / Segregation of Duties Reporting Significant Deficiency § 200.512
Corrective Action Plan: In the time since the initial audit was due at the end of 2022, the organization experienced a substantial turnover in its senior administrative leadership team who initially were charged with tracking this grant and its reporting requirements. I was engaged as the new Chief ...
Corrective Action Plan: In the time since the initial audit was due at the end of 2022, the organization experienced a substantial turnover in its senior administrative leadership team who initially were charged with tracking this grant and its reporting requirements. I was engaged as the new Chief Executive Officer in November 2023, and have since hired a new General Manager, Director of Development, and worked closely with our accounting firm, which was engaged to replace the original CFO, after her retirement in 2022. Since this new team has assumed leadership, we have transitioned to new accounting and billing software platforms, developed or renewed policies and procedures to monitor, track, and report all expenditures and revenues, and to more accurately monitor, track, and report on impending grant reporting deadlines and requirements. We have also upgraded to a cloud -based server/file-sharing system and reorganized the filing and archival systems and procedures to ensure that files and documents are organized more clearly and more accessibly for both current and future staff members. Anticipated Completion Date: Already implemented.
View Audit 348149
Finding 530092 (2022-005)
Significant Deficiency 2022
South Big Horn Hospital District
WY
Reporting Significant Deficiency Matching / Level of Effort / Earmarking
2022-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2025
2022-005 - Reporting Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 2025
View Audit 348143
Finding 530091 (2022-004)
Significant Deficiency 2022
South Big Horn Hospital District
WY
Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking § 200.303
2022-004 - Required debt reserve compliance Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 20 5
2022-004 - Required debt reserve compliance Corrective Action Plan: Management agrees with the finding and has committed the resources giving rise to the finding. Person(s) Responsible: M. Michael Garza Timing for Implementation: June 30, 20 5
View Audit 348143
Finding 529979 (2022-005)
Material Weakness 2022
Fairbanks Rescue Mission, Inc.
AK
Subrecipient Monitoring
Financial Statement Finding: 2022-005 Material Weakness in Internal Control over Compliance and Noncompliance – Subrecipient Monitoring – Repeat Finding Name and Contact Person: Pete Kelly, Chief Executive Officer Corrective Action: A process will be developed to ensure that there is a review perfor...
Financial Statement Finding: 2022-005 Material Weakness in Internal Control over Compliance and Noncompliance – Subrecipient Monitoring – Repeat Finding Name and Contact Person: Pete Kelly, Chief Executive Officer Corrective Action: A process will be developed to ensure that there is a review performed and documentation retained for all subawardee’s risk assessments through reviewing their status via sam.gov. Proposed Completion Date: January 30, 2025
View Audit 348068
Finding 529977 (2022-004)
Material Weakness 2022
Fairbanks Rescue Mission, Inc.
AK
Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment
Financial Statement Finding: 2022-004 Material Weakness in Internal Control over Financial Reporting and Noncompliance – Allowable Costs/Cost Principles - Repeat Name and Contact Person: Pete Kelly, Chief Executive Officer Corrective Action: Management hired a Finance Director and contracted with an...
Financial Statement Finding: 2022-004 Material Weakness in Internal Control over Financial Reporting and Noncompliance – Allowable Costs/Cost Principles - Repeat Name and Contact Person: Pete Kelly, Chief Executive Officer Corrective Action: Management hired a Finance Director and contracted with an Accountant that has made significant improvements to the processes and record keeping to ensure that sufficient documentation is maintained by the Organization. Proposed Completion Date: January 1, 2024
View Audit 348068
Finding 529849 (2022-008)
Significant Deficiency 2022
First Nations Community Healthsource, Inc.
NM
Reporting Internal Control / Segregation of Duties § 200.512
Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: FNCH’s management agrees with the auditor’s recommendation...
Recommendation We recommend that management enhance its internal control structure, including financial close and reporting, to ensure timely filing of future Single Audit reporting packages. Management Response Corrective Action: FNCH’s management agrees with the auditor’s recommendation. Due to the unprecedented challenges posed by the COVID-19 pandemic, the Finance Department experienced significant staffing disruptions, resulting in an 80% turnover rate, which notably included the departure of the CFO. Additionally, COVID-19 incidents among staff members adversely impacted attendance, leading to frequent absences that ranged from one to two weeks. This created severe staffing shortages that hampered the department's operations. The pandemic's effect extended beyond immediate staffing, complicating the recruitment of new employees in a competitive job market. Consequently, the Finance Department faced considerable difficulties in meeting its audit and tax filing deadlines. FNCH will implement correction action steps to address the timely submission of audit reports and tax filings. The CFO will ensure audited financial statements are completed in a timely manner by implementing enhanced internal controls, including timely bank reconciliations, financial close, and reporting, to ensure timely filing of audit reports and tax filings. Due Date of Completion: September 30, 2025 Responsible Party(ies): CEO, CFO
View Audit 347889
Finding 529555 (2022-004)
Material Weakness 2022
National Indian Health Board
DC
Procurement, Suspension & Debarment § 200.318
2022-004 Summary of Finding Missing documentation for procurement, suspension and debarment: Bid or sole source documentation was missing for all five contracts that we selected for testing and there was no documentation of the verification that the contractor was not suspended or debarred. It is im...
2022-004 Summary of Finding Missing documentation for procurement, suspension and debarment: Bid or sole source documentation was missing for all five contracts that we selected for testing and there was no documentation of the verification that the contractor was not suspended or debarred. It is important to determine that contractors used are eligible for work and that they have not been suspended or debarred from performing work on projects supported by federal funds It is also important to have full and open competition on contract work that is federally funded. As a result, the Organization was missing documentation relating to the requirements for procurement, suspension and debarment. Statement of Concurrence or Nonconcurrence This finding was concurred with due to staff turnover and the department being short-staffed. Corrective Action In response to the noted deficiencies in procurement, suspension, and debarment documentation, the Organization has developed a comprehensive Grant Cycle Standard Operating Procedure that aligns with OMB Uniform Guidance. This procedure reinforces the existing Procurement policy, ensures all staff receive targeted training on relevant requirements, and incorporates additional review measures into the onboarding process for new hires. Furthermore, a new position has been created, and a new management platform has been implemented to manage purchase orders, maintain all sourcing documentation, and verify all contractors are not suspended or debarred, thereby ensuring full compliance with federal requirements and promoting transparency in contractor eligibility and competitive bidding.
View Audit 347522
Finding 529530 (2022-007)
Material Weakness 2022
National Indian Health Board
DC
Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles
Summary of Finding Improper monitoring of subrecipients: Auditors noted there was no documentary evidence of a check for suspension or debarment for any of the subrecipients and in addition there was no follow up on the audit findings for subrecipient. As a result, the Organization was missing docum...
Summary of Finding Improper monitoring of subrecipients: Auditors noted there was no documentary evidence of a check for suspension or debarment for any of the subrecipients and in addition there was no follow up on the audit findings for subrecipient. As a result, the Organization was missing documentation relating to subrecipient monitoring requirements for the year ended December 31, 2022. Statement of Concurrence or Nonconcurrence This finding was concurred with due to staff turnover and the department being short-staffed. Corrective Action In response to the findings on subrecipient monitoring, the Organization has updated its Grant Cycle Standard Operating Procedures to align with OMG Uniform Guidance. These revised procedures now require documented checks for suspension or debarment for all subrecipients, along with mandated follow-up on any subrecipient audit findings. In addition, all staff have received enhanced training on these requirements, and the onboarding process has been updated to include a focused review of subrecipient monitoring. Finally, a new position has been established to manage vendor purchase orders and maintain comprehensive sourcing documentation, thereby strengthening overall oversight and ensuring ongoing compliance with federal requirements.
View Audit 347522
Finding 529529 (2022-006)
Significant Deficiency 2022
National Indian Health Board
DC
Summary of Finding Missing or unsigned salary documentation: During our testing of payroll, we noted that offer letters or salary change forms were not signed or could not be located for four of the employees tested. As a result, the Organization did not maintain the proper signed documentation for ...
Summary of Finding Missing or unsigned salary documentation: During our testing of payroll, we noted that offer letters or salary change forms were not signed or could not be located for four of the employees tested. As a result, the Organization did not maintain the proper signed documentation for employee salaries. Statement of Concurrence or Nonconcurrence This finding is concurred with due to staff turnover. Corrective Action We have introduced Personnel Action Forms (PAFs) to document any changes in an employee’s salary or supervisor status. These forms ensure that all salary adjustments are properly recorded and authorized. If a salary change is due to a promotion or interim role, a formal letter accompanies the PAF, clearly outlining the terms of the change. These letters require signatures from the employee, their supervisor, and the CEO and are securely stored in the employee’s e-file. To further improve our documentation process, we are transitioning to a new Applicant Tracking System (ATS) that integrates with Paychex. This system will allow for electronic distribution and automatic storage of offer letters, ensuring they are consistently filed and easily retrievable.
View Audit 347522
Finding 529528 (2022-005)
Material Weakness 2022
National Indian Health Board
DC
Reporting Subrecipient Monitoring
Summary of Finding Late reports, missing reports and variances from accounting records: Four of the financial reports were submitted late and four had a variance from the expenditures per the general ledger. In addition, programmatic reports were missing for both of the major programs tested. It is ...
Summary of Finding Late reports, missing reports and variances from accounting records: Four of the financial reports were submitted late and four had a variance from the expenditures per the general ledger. In addition, programmatic reports were missing for both of the major programs tested. It is important that all reports are timely filed and there is documentation to support all programmatic and financial reports. This ensures that the Organization is in compliance with Uniform Guidance, as well as ensuring that they are properly expending the funds and completing the goals of the grants. As of the end of the grant period there was an overall variance of $12,060 between the amounts reported on the financial reporting and the general ledger. We were also unable to obtain programmatic reports to verify that these were filed. Statement of Concurrence or Nonconcurrence This finding is concurred with due to staff turnover and the department being short-staffed. Corrective Action In response to the identified issues, the Organization has appointed a new Grants Director who is now responsible for overseeing all aspects of grant reporting, compliance, and fund management. The Grants Director implemented a new grant management software and comprehensive reporting tracker that monitors all deadlines to ensure the timely submission of financial and programmatic reports. This will also ensure proper record management, retention, and access. The Grants Director is also charged with reconciling reported expenditures with the general ledger and verifying that all grant deliverables are met in accordance with Uniform Guidance. These measures are designed to prevent future late or missing reports and to ensure that funds are properly expended and documented.
View Audit 347522
Finding 529318 (2022-004)
Material Weakness 2022
City of McKeesport
PA
Questioned Costs Procurement, Suspension & Debarment § 200.318 § 200.324
CONDITION: The City of McKeesport contracted with a third-party vendor (A&H Equipment) for the purchase of a street sweeper. The contract with the third-party vendor, which was procured through a cooperative purchasing group (COSTARS), exceeded the threshold for competitive procurement. The City was...
CONDITION: The City of McKeesport contracted with a third-party vendor (A&H Equipment) for the purchase of a street sweeper. The contract with the third-party vendor, which was procured through a cooperative purchasing group (COSTARS), exceeded the threshold for competitive procurement. The City was unable to provide documentation to verify that the third-party procurement contract was competitively procured, such as a bid evaluation and public solicitation. In addition, the City did not conduct a cost or price analysis for this procurement, which was in excess of the Simplified Acquisition Threshold of $250,000. CRITERIA: Section 2 CFR 200.318(i) of the Uniform Guidance prescribes the bidding requirements for equipment, supplies, and work of any nature made by a non-federal entity whereby the cost exceeds the Simplified Acquisition Threshold. The cost of the street sweeper exceeded the simplified acquisition threshold of $250,000. As specified in 2 CFR 200. 318(i) of the Uniform Guidance, the City must maintain sufficient records to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. In addition, Section 2 CFR 200.324(a) of the Uniform Guidance requires the performance of a cost or price analysis in connection with every procurement in excess of the Simplified Acquisition Threshold. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will review and update as necessary its procurement policies to ensure In instances where the procurement cost incurred for goods and/or services exceeds the Uniform Guidance Simplified Acquisition, including such instances whereby the City is using a contract vehicle from a cooperative purchase network, that the City is in compliance with all applicable sections of the Uniform Guidance, in specific, Section 2 CFR 200.318(i) of the Uniform Guidance. In addition, I recommend that the City conduct a cost or price analysis for all procurement in excess of the Simplified Acquisition Threshold of $250,000 before receiving bids or proposals in accordance with Section 2 CFR 200.324(a) of the Uniform Guidance. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Sections 2 CFR 200.318(i) and 2 CFR 200. 324(a) of the Uniform Guidance.
View Audit 347342 Questioned Costs: $1
Finding 529317 (2022-003)
Material Weakness 2022
City of McKeesport
PA
Questioned Costs Procurement, Suspension & Debarment § 200.318 § 200.320
CONDITION: The City of McKeesport contracted four (4) vendors for the purchase of seven separate purchases of equipment for the City. These contracts individually exceeded the Uniform Guidance micro purchase threshold of $10,000, but did not exceed the Simplified Acquisition Threshold of $250,000. A...
CONDITION: The City of McKeesport contracted four (4) vendors for the purchase of seven separate purchases of equipment for the City. These contracts individually exceeded the Uniform Guidance micro purchase threshold of $10,000, but did not exceed the Simplified Acquisition Threshold of $250,000. All of these purchases were procured through a cooperative purchasing group (COSTARS). The City was unable to 1) provide records sufficient to detail the history of procurement for these contracts and 2) provide documentation to verify that price or rate quotations were obtained from an adequate number of qualified sources. This is a repeat finding (2021-005) for the prior year. CRITERIA: Section 2 CFR 200.320(a)(2)(i) of the Uniform Guidance prescribes the bidding requirements for equipment, supplies, and work of any nature made by a non-federal entity whereby the cost exceeds certain dollar thresholds as adjusted periodically. In instances where the cost incurred exceeds the Uniform Guidance micro purchase threshold of $10,000 but does not exceed the Simplified Acquisition Threshold of $250,000, price or rate quotations must be obtained from an adequate number of qualified sources. In addition, as specified in 2 CFR 200. 318(i) of the Uniform Guidance, the City must maintain sufficient records to detail the history of procurement. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will review and update as necessary its procurement policies to ensure In instances where the procurement cost incurred for goods and/or services exceeds the Uniform Guidance micro purchase threshold of $10,000 but does not exceed the Simplified Acquisition Threshold of $250,000, that 1) price or rate quotations are obtained from an adequate number of qualified sources, and 2) sufficient records are maintained to detail the history of procurement. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Sections 2 CFR 200.320(a)(2)(i) and 2 CFR 200. 318(i) of the Uniform Guidance.
View Audit 347342 Questioned Costs: $1
Finding 529316 (2022-002)
Material Weakness 2022
City of McKeesport
PA
Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403
CONDITION: During the calendar year 2022, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fash...
CONDITION: During the calendar year 2022, the City did not utilize a formal general ledger system of accounting to track the financial activity (financial position and results of operations) for several ‘Funds’ held at the City. The activity of these funds is either 1) maintained in spreadsheet fashion similar to a checkbook used in personal finances, 2) recorded partially (expenses only with no revenue), or 3) not tracked at all. As these funds are not maintained using the City’s accounting software package, management does not have the ability to efficiently generate financial reports necessary to provide management with the proper fiscal oversight. This condition included the American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. However, it should be noted that City personnel were able to prepare spreadsheets to document which expenditures were utilized to prepare the necessary quarterly reporting requirements to the Department of Treasury. This is a repeat finding (2021-002) from the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include maintaining a formal general ledger system of accounting to track the activity of all ‘Funds’ maintained by the City. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will assess the current workload and expertise of the City’s business office personnel in an effort to determine a feasible timeframe to continue the process of creating a formal general ledger system of accounting for all City ‘Funds’ that are not already entered into the software accounting system. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the maintaining of a formal general ledger system of accounting for all ‘Funds’ of the City.
View Audit 347342
Finding 529308 (2022-001)
Material Weakness 2022
City of McKeesport
PA
Allowable Costs / Cost Principles Internal Control / Segregation of Duties Reporting § 200.403
CONDITION: During the calendar year 2022, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentat...
CONDITION: During the calendar year 2022, the City did not record the necessary adjustments to the various ‘Fund’ general ledgers of the City to properly reconcile the balance sheet accounts, such as cash, receivables, payables, and payroll-related liabilities to the underlying supporting documentation available at the City (which includes reconciliations of cash prepared independently by City personnel but do not agree to amounts reported in the various general ledgers). This included ‘Funds” containing significant federal funding such as the City’s Community Development Block Grant (CDBG) Program and American Rescue Plan Act (ARPA) funding known as the Coronavirus State and Local Fiscal Recovery Fund. CONDITION (Continued): As a result, the financial position and results of operations as shown throughout the calendar year were inaccurately stated. However, it should be noted that the Community Development Department of the City and other City personnel maintain separate financial reporting for these federal funds, independent of the aforementioned ‘Fund’ general ledgers sufficient to ascertain the revenues and expenditures of the federal programs. This is a repeat finding (2021-001) for the prior year. CRITERIA: Prudent internal control procedures in the areas of general ledger management and financial reporting include the reconciliation of all general ledger account balances to underlying supporting documentation monthly with independent oversight and approval as part of the process. In specific as it relates to federal programs, Section 2 CFR 200.403(g) of the Uniform Guidance requires that federal costs must be adequately documented which would include the applicable general ledgers of the City. MANAGEMENT’S CORRECTIVE ACTION PLAN: Management of the City will review the recommended options as presented by the Audit Firm’s recommendation for feasibility considering current manpower, expertise, and budgetary constraints. In addition, the City plans to ensure that written procedures for all accounting functions are implemented, reviewed and updated as necessary with the objective of ensuring that all balance sheet account balances are supported by the underlying documentation available at the City. The timeframe for completion of this review will occur during the first nine months of calendar year 2025 with the intention of having the City be in full compliance with Section 2 CFR 200.403(g) of the Uniform Guidance which requires federal costs to be adequately documented which would include the applicable general ledgers of the City.
View Audit 347342
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