Finding Text
2024-003 TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY Federal Program Community Development Block Grant-Entitlement/Special Purpose Grants Cluster ALN 14.218: passed through the County of Berks COVID-19 - Emergency Rental Assistance ALN 21.023; passed through the County of Berks COVID-19 - 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 2023 reporting package was submitted on December 24, 2025, which was after the nine month due date of September 30, 2024. In addition, the 2024 reporting package was not submitted by the September 30, 2025 due date. Cause In 2021, the Authority received a significant increase in grant funding. This increase in funding, along with limited staff resources at the time resulted in delays in closing the 2021 year-end and resulted in compounded delays in closing subsequent years as well. 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 Repeat Finding Yes; 2023-004. 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 While the Authority continues to be delinquent on the current year audit completion, a consulting firm was hired to assist with bringing records up to date. The Authority also had hired an assistant fiscal officer in the fall of 2021 and another assistant fiscal officer in the fall of 2022. As a result of the hiring, job responsibilities have been re-assigned and data gathering for future audits will occur in a timely manner. Accounts have been reconciled through December 31, 2025 prior to this audit commencing. The Authority will continue to execute their plan to have the audits completed on a timely basis and expects to submit the audited financial statements and single audit reporting package for the year ended December 31, 2025 to the Federal Audit Clearinghouse timely.