Finding 1228101 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-27
Audit: 409920
Organization: NORTHAMPTON TOWNSHIP (PA)

AI Summary

  • Core Issue: The Organization's financial management procedures do not fully comply with 2 CFR 200.302 requirements.
  • Impacted Requirements: Key areas include documentation, time and effort reporting for payroll, and specific purchasing considerations.
  • Recommended Follow-Up: Update policies to align with 2 CFR 200.302 to prevent errors in financial reporting.

Finding Text

Criteria and Condition: While the Organization has some written financial management procedures documentation, it does not meet all the recent specific requirements under 2 CFR 200.302 in the Uniform Grant Guidance. Context: The financial management requirements under 2 CFR 200.302 require each non-federal entity maintain effective control over, and accountability for all funds, property, and other assets, including having written procedures in place. Key changes which effect the Organization include: • Increased documentation • Time and effort reporting for payroll • Specific purchasing consideration Cause: The Organization did not implement adequate controls to ensure compliance with this reporting requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Organization update its existing policies to comply with the requirements under 2 CFR 200.302. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302. The Organization will implement these policies and procedures to ensure that the organization will comply going forward.

Corrective Action Plan

The Organization will review guidance and create missing policies

Categories

Reporting Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
20.205 HIGHWAY PLANNING AND CONSTRUCTION $1.21M
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $5,943