Finding 38725 (2022-001)

Criteria: Title 2 CFR Section 200.303 of the Uniform Guidance requires nonfederal entities to establish and maintain effective internal control over Federal awards. The grant agreement requires quarterly performance reports due 30 days following the end of each calendar quarter. Condition: Reports required by the federal program were not submitted timely and internal controls were not followed to ensure timely filing occurred. Questioned Costs: None Cause: Horsham Water and Sewer Authority did not follow their established internal control procedures that ensure the quarterly performance and financial reports are filed 30 days following the end of each calendar quarter. Effect: The Authority is not in compliance with Title 2 CFR Section 200.303 of the Uniform Guidance as well as the reporting requirements of the grant agreement. Recommendation: We recommend that quarterly performance and financial reports be submitted 30 days following the end of each calendar quarter and all established internal controls currently in place to ensure these reports are filed timely are followed.