Finding 1078198 (2023-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-10-04
Audit: 323849
Organization: Loyalsock Township (PA)

AI Summary

  • Core Issue: The Township's Schedule of Expenditures of Federal Awards (SEFA) was incomplete and inaccurate, leading to material misstatements.
  • Impacted Requirements: Compliance with Title 2 CFR Sections 200.510(b) and 200.508(b) for proper financial reporting.
  • Recommended Follow-Up: Implement procedures to ensure all federal expenditures are accurately identified and reported.

Finding Text

Highway Planning and Construction - Assistance Listing No. 20.205; Passed through Pennsylvania Department of Transportation, Grant Period - Year Ended December 31, 2023. Material Weakness: See deficiency 2023-002 in Section II - listed below 2023-002. SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS -Criteria: The Township must prepare appropriate financial statements, including the schedule of expenditures of federal awards (SEFA), in accordance with Title 2 CFR Sections 200.510(b) and 200.508(b) of the Uniform Guidance. The preparation of the SEFA assists the Township in determining whether it has a Single Audit reporting requirement. Condition: Although management prepared a draft of the SEFA, it was incomplete and contained inaccurate information. Cause: Management did not identify all of the Township’s federal expenditures. Effect: Prior to adjustment, federal expenditures were materially misstated. Questioned Costs: Not applicable. Perspective Information: Not applicable. Identification of Repeat Findings: Not applicable. Recommendation: The Township should establish procedures to identify all expenditures and reporting requirements of its federal programs. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See Township’s corrective action plan.

Categories

Reporting

Other Findings in this Audit

  • 501755 2023-003
    Significant Deficiency
  • 501756 2023-004
    Material Weakness
  • 1078197 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $586,021
97.029 Flood Mitigation Assistance $237,148
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $76,155