Finding Text
2025-001 Incomplete Schedule of Expenditures of Federal and State Awards. Condition: The following three (3) federal awards from the US Department of Treasury were not reported on the fiscal year-ended June 30, 2025, Schedule of Expenditures of Federal and State Awards (SEFA): COVID-19 State and Local Fiscal Recovery Funds (ALN#21.027). Expenditures totaling $134,144 passed through the City of Scranton, PA. COVID-19 State and Local Fiscal Recovery Funds (ALN#21.027). Expenditures totaling $237,238 passed through Lackawanna County, PA. COVID-19 State and Local Fiscal Recovery Funds (ALN#21.027). Expenditures totaling $52,882 passed through Lackawanna County, PA. Criteria: Uniform guidance requires that Federal Awards that are expended in a fiscal year are to be reported on the entity's SEFA. Cause: The Agency failed to identify and track Federal funding received during the fiscal year-ended June 30, 2025. Effect: The SEFA was misstated and did not accurately reflect the Agency's federal expenditures for the fiscal-year ended June 30, 2025. As a result, although the identification of Major Federal Programs was not affected, the omission could have impacted the scope of the Single Audit. Recommendation: The Agency should implement procedures to ensure that all Federal Awards are indentified and included on the SEFA. Procedures should include a thorough review by the Controller of all grant awards to identify which include Federal Funding. Response: The Agency agrees with the finding. Recommended procedures will be implemented.