Finding 385327 (2023-003)

Finding 2023-003 - Uncollected receivables Criteria: The District receives assistance from the Department of Health and Human Services and the Commonwealth of Pennsylvania Department of Education. The District must submit a request for draw down of funds to be reimbursed for actual expenditures incurred. The District must request these funds within a certain period of time as each grant has a designated close out period. Condition: During audit procedures it was noted that there were receivables from the prior period were not collected. The funds were never drawn down for the expenditures incurred and because it is past the close out period, the District can no longer request draw down of these funds. We consider this to be a material weakness. Cause: Lack of accounting and bookkeeping regarding the District’s general ledger accounts caused the prior receivable balances to be overlooked. Prior balances were not timely reviewed and reconciled. Effect: The District will not receive the funds for expenditures incurred but will absorb the cost of these expenditures. The prior year receivables will be removed from the combined balance sheet accordingly. Recommendations: We recommend that the combined balance sheet accounts be reviewed regularly and on a timely basis, with adjustments made as necessary. When determined that receivables exist, the funds should be requested in a timely manner. View of Responsible Officials: There were previous receivables from the prior period that were not timely reviewed and overlooked due to an oversight and staff turnover. The Community Action Partnership of Mercer County does not foresee this happening again in the future now that the District is under the Community Action Partnership of Mercer County’s accounting software.