FAC Explorer

Finding 1186851 (2025-008)

Material Weakness Repeat Finding
Requirement
H
Questioned Costs
-
Year
2025
Accepted
2026-03-26
Audit: 394595
Organization: Seda Council of Governments (PA)
Auditor: LARSON KELLETT & ASSOCIATES PC

AI Summary

  • Core Issue: The Council failed to record grant funding earned before the year-end.
  • Impacted Requirements: Accrual basis financial statements must include all amounts earned prior to year-end.
  • Recommended Follow-up: Ensure proper cut-off procedures for revenue recognition are implemented moving forward.

Finding Text

U.S. DEPARTMENT OF TREASURY COVID-19-Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027; Passed through the Pennsylvania Department of Economic Development, Grant period - Year ended June 30, 2025. See Finding 2025-006. Listed below. REVENUE RECONGITION (DUE FROM OTHER GOVERNMENTS) Criteria: Accrual basis financial statements should include all amounts earned prior to year-end. Condition: The Council did not record grant funding earned. Cause: The Council did not provide proper cut-off of revenues at year-end. Effect: Due from other governments, and intergovernmental revenues were understated. Questioned Costs: None. Perspective Information: Not applicable. Identification of Repeat Findings: Not applicable.

Corrective Action Plan

U.S. DEPARTMENT OF TREASURY COVID-19-Coronavirus State and Local Fiscal Recovery Funds- Assistance Listing No. 21.027; Passed through the Pennsylvania Department of Economic Development, Grant period - Year ended June 30, 2025. See Finding 2025-006 – Listed below. REVENUE RECOGNITION (DUE FROM OTHER GOVERNMENTS) Recommendation: The Council’s fiscal office and program director’s should be evaluating grant funding received that could be related to prior work/projects complete and record in the proper period as required. Management Response: Management concurs with finding. Planned Corrective Action: All accounts payable invoices and vouchers will be reviewed through October 15th of the following fiscal year to ensure revenue for any reimbursable expenses are recorded in the correct fiscal year. Persons Responsible: Jamie Carnes, Fiscal Controller Anticipated Completion Date: March 31, 2026

Categories

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Other Findings in this Audit

  • 1186848 2025-007
    Material Weakness Repeat
  • 1186849 2025-007
    Material Weakness Repeat
  • 1186850 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $5.54M
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $1.62M
81.042 WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS $939,435
23.011 APPALACHIAN RESEARCH, TECHNICAL ASSISTANCE, AND DEMONSTRATION PROJECTS $678,078
10.767 INTERMEDIARY RELENDING PROGRAM $294,894
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $283,996
12.002 PROCUREMENT TECHNICAL ASSISTANCE FOR BUSINESS FIRMS $240,802
20.939 SAFE STREETS AND ROADS FOR ALL $128,614
23.009 APPALACHIAN LOCAL DEVELOPMENT DISTRICT ASSISTANCE $68,663
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $36,265
20.205 HIGHWAY PLANNING AND CONSTRUCTION $34,994
23.002 APPALACHIAN AREA DEVELOPMENT $22,950
66.818 BROWNFIELDS MULTIPURPOSE, ASSESSMENT, REVOLVING LOAN FUND, AND CLEANUP COOPERATIVE AGREEMENTS $17,156
23.001 APPALACHIAN REGIONAL DEVELOPMENT (SEE INDIVIDUAL APPALACHIAN PROGRAMS) $12,698