Finding Text
Community Development Block Grant - Assistance Listing No. 14.228 passed through the Pennsylvania Department of Community and Economic Development - Pass-through Grantor’s Numbers - C000065043, C000070006, C000073770, C000080676; CDBG - Disaster Recovery Grants - Pub. L. No. 113- 2 Cluster - Assistance Listing No. 14.269 passed through the Pennsylvania Department of Community and Economic Development - Pass-through Grantor’s Number - C000080676; Grant Period - Year Ended December 31, 2022. Material weakness: See deficiency 2022-009 in Section II. COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) Criteria: GAAP requires recording grant revenues and the related eligible expenditures separately, rather than offsetting them. Condition: The County netted CDBG grant revenues against CDBG grant expenditures. Cause: The County’s procedures are not adequately designed to ensure that grant activity is properly recorded on the financial statements. Effect: Revenues and expenditures on the financial statements were materially understated. Questioned Costs: Not applicable. Perspective Information: Not applicable. Identification of Repeat Findings: Not applicable. Recommendation: The County should report grant activity on the financial statements in accordance with GASB accounting and financial reporting principles. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See the County’s corrective action plan.