Finding Text
Finding 2020-003 Timeliness of Annual Audit
U.S. Department of Transportation, passed through Commonwealth of Pennsylvania DOT Assistance Listing 20.205; Award Nos. 066396/A/B and R18060028; Grant period – Year ended December 31, 2020
Criteria: The Uniform Guidance Part 200.512(a)(1) states: “The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section shall be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period.”
Condition: The City did not submit its data collection form and reporting package timely.
Cause: The City did not close its accounting records timely in order to produce sufficient evidence for its financial and single audits to be conducted timely.
Effect: Noncompliance with Federal regulations.
Questioned Costs: None noted.
Context: The City did not complete its annual audit in time to comply with the federal filing deadline.
Identification of Repeat Finding: N/A
Recommendation: We recommend that management ensure documentation for the audit is readily available, reconciled and properly reviewed for accuracy and completion, to enable timely audit submission to the Federal Audit Clearinghouse and funding agencies.
View of responsible officials and planned corrective actions: The City of Chester Chief Financial Officer has divided the finance department staff into teams with specific assignments. One team is focused on completing the 2021 and 2022 annual audits. Another team is focused on producing timely and accurate monthly financial reports for the current year. The next team is working on implementing best practices by establishing policies and procedures improving internal controls. With the assistance of third-party professionals provided by the State appointed Receiver, the goal is to complete the 2021 and 2022 audits by the end of 2024. In 2025, the City will duplicate this effort by completing the 2023 and 2024 audits by year-end.