Finding Text
2023-004 TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant/Entitlement Grant Cluster ALN 14.218; passed through the County of Berks HOME Investment Partnership Program ALN 14.239; passed through the County of Berks Emergency Rental Assistance ALN 21.023; passed through the County of Berks Coronavirus State and Local Fiscal Recovery ALN 21.027; passed through the Commonwealth of Pennsylvania Department of Community and Economic Development Criteria Per 2 CFR 200.512(a), auditees must submit the reporting package and Data Collection Form within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Authority did not submit the Single Audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the required timeframe of nine months after the end of the audit period. The 2022 reporting package was submitted on May 7, 2025, which was after the nine-month due date of September 30, 2023. In addition, the 2023 reporting package was not submitted by the September 30, 2024 due date. Cause The significant increase in grant funding limited staff capacity to prepare for and provide information requested for the audit. For example, key reconciliations needed to support balances were not prepared by management prior to the audit. Effect The delay in the submission of the data collection form and audit to the Federal Audit Clearinghouse will result in the Authority not being considered a low-risk auditee as defined by the Uniform Guidance for the following two years. Questioned Costs None Context The lack of staff resources to timely close the accounting records has resulted in compounded delays in closing the subsequent 2023 and 2024 year-ends as well. The Authority has taken steps such as hiring additional accounting staff, and engaging a consulting firm to assist with bringing the accounting records up to date and past-due audits submitted to the Federal Audit Clearinghouse. Repeat Finding Yes; 2022-003. Recommendation We recommend that the Authority continue to execute their plan to bring the accounting records up to date and submit outstanding audited financial statements to the Federal Audit Clearinghouse. Management Response The Authority will continue to execute their plan to bring the accounting records up to date and submit outstanding audited financial statements to the Federal Audit Clearinghouse. Current Status of Corrective Action Plan While the Authority continues to be delinquent on audit completions, a consulting firm was hired to assist with bringing records up to date. Accounts have been reconciled through December 31, 2024 prior to the audit commencing. Additionally, the Authority has entered into a contract with an auditing firm to complete audits for 2023 and 2024 by December 2025.