Finding 1056955 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-06
Audit: 316706
Organization: Perkasie Regional Authority (PA)
Auditor: Marcum LLP

AI Summary

  • Answer: Federal expenditures were inaccurately reported on the SEFA due to unaccounted reimbursement requests.
  • Trend: There is a lack of proper segregation of duties, with the Authority Manager both preparing and reviewing the SEFA.
  • List: Follow up by ensuring accurate accounting of expenditures and implementing a clear separation of duties in the SEFA preparation process.

Finding Text

During procedures performed for reconciliation of the information presented on the SEFA to the underlying records used to prepare the SEFA such as the general ledger, reimbursement requests and grant agreements, auditor noted the following: 1) The federal expenditures were not properly reflected on the SEFA as the Authority did not properly account for expenditures submitted for reimbursement but not received before December 31, 2023; 2) The Authority lacked the proper segregation of duties as the Authority Manager prepared and reviewed the SEFA

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480512 2023-001
    Material Weakness
  • 480513 2023-002
    Material Weakness
  • 480514 2023-003
    Significant Deficiency
  • 1056954 2023-001
    Material Weakness
  • 1056956 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $3.31M