Finding 1235998 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-09-22

Audit: 411606

Organization: Pennsylvania Community Real Estate Corporation (PA)

Auditor: ASCEND CPA SOLUTIONS LLC

AI Summary

Issue: General ledger accounts were not reconciled on time, affecting key areas like cash and accounts receivable.
Trend: This has been a recurring problem, leading to material audit adjustments and delays.
Follow-up: Implement a stricter reconciliation schedule to ensure timely completion for future audits.

Finding Text

General Ledger Account Reconciliations & Timeliness (recurring finding) - General ledger accounts were not reconciled on a timely basis throughout the fiscal year. The primary accounts involved were cash, accounts receivable, accounts payable, accrued expenses, revenue, and client rental payment expenses. Material audit adjustments were required for these accounts that caused a significant delay in the completion of the audit for the fiscal year ended June 30, 2025.

Corrective Action Plan

While we had anticipated completing our fiscal year audit within the expected time frame, several unforseen challenges delayed our progress. The most significant factor was the delayed completion of the prior fiscal year's audit, which required substantial staff time and resources and consequently postponed preparation for the current year's audit. We have taken steps to address these issues to ensure they do not impact the Fiscal Year 2026 audit timeline. In preparation for the upcoming audiit, we have already begun our year-end closing process and are conducting ongoing financial reviews to stengthen our readiness and support a timely completion and submission of the Fiscal Year 2026 audit.

Other Findings in this Audit

1235996 2025-001

Material Weakness Repeat
1235997 2025-002

Material Weakness Repeat
1235999 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.241	HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS	$3.28M
14.218	COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS	$417,386
14.267	CONTINUUM OF CARE PROGRAM	$360,635
21.019	CORONAVIRUS RELIEF FUND	$143,641