Finding 1225678 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-05
Audit: 408539

AI Summary

  • Core Issue: The Authority failed to submit its Single Audit on time, missing the nine-month deadline after the calendar year-end.
  • Impacted Requirements: This delay violates the Uniform Guidance §200.512(a), affecting compliance with federal audit requirements.
  • Recommended Follow-Up: Management should assess staffing and responsibilities to ensure timely completion of future audits.

Finding Text

2025-001: Completion and Submission of Annual Single Audit - Significant Deficiency/Noncompliance Federal Program: Assistance Listing #66.458, Clean Water State Revolving Fund, U.S. Environmental Protection Agency, Passed Through Pennsylvania Department of Community and Economic Development, Pass-Through Entity Identifying Number: 72830 and 71474 Prior Year Finding Number: N/A Criteria: Pursuant to the provisions of the Uniform Guidance, under §200.512(a), the Authority is required to complete and submit its Single Audit and related Data Collection Form within nine months of the end of its calendar year-end (September 30) of the following year. Condition/Context: The Authority's Single Audit and reporting package was delayed for the year ended December 31, 2024 beyond the nine-month due date, as a result of delays in reconciling federal and state award activity with the Commonwealth. Questioned Costs: N/A Cause: The Authority's 2024 Single Audit was delayed beyond the nine-month filing deadline as a result of turnover and updating of its accounting and reporting policies and procedures to ensure compliance with GASB standards. Effect or Potential Effect: The Authority is not in compliance with certain requirements of the Uniform Guidance, including the Single Audit reporting requirements. Recommendation: We recommend Authority management review its staffing and personnel responsibilities to prioritize the completion of its audit within the prescribed timeframes. Views of Responsible Officials and Planned Corrective Action: The Authority anticipates filing its 2025 report within the required time frame. See corrective action plan.

Corrective Action Plan

Condition The Authority's Single Audit and reporting package was delayed for the year ended December 31, 2024 beyond the nine-month due date, as a result of delays in reconciling federal and state award activity with the Commonwealth. Corrective Action Plan Corrective Action Planned: Fiscal year 2024 represented a significant transition period for the Authority. During the year, the Board of Directors appointed a new Chief Financial Officer and engagement a new auditor. The transition required substantial effort to transfer institutional knowledge, review historical accounting records, reconcile significant grant activity and establish a new audit process. As a result of these transition activities, the Authority’s 2024 financial statements were not certified until September 29, 2025, leaving insufficient time to complete and submit the required Single Audit reporting package by the required due date. The Authority’s 2025 Audit was presented to the Board of Directors for acceptance during the July board meeting and will be filed shortly thereafter. Management has implemented the necessary procedures and revised its audit timeline to ensure compliance with all future reporting requirements. Accordingly, the Authority expects to remain fully compliance with the filing deadlines prescribed under the Uniform Guidance for the 2025 and all subsequent audit periods. Name(s) of Contact Person(s) Responsible for Corrective Action: Chief Financial Officer Anticipated Completion Date: August 2026

Categories

Questioned Costs Subrecipient Monitoring Reporting Significant Deficiency Special Tests & Provisions

Other Findings in this Audit

  • 1225677 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.458 CLEAN WATER STATE REVOLVING FUND $7.21M
66.202 CONGRESSIONALLY MANDATED PROJECTS $959,757
66.466 GEOGRAPHIC PROGRAMS - CHESAPEAKE BAY PROGRAM $456,786
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $323,717