Finding 39719 (2022-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-08-06

Audit: 37886

Organization: New Kensington Community Development Corporation (PA)

Auditor: Withum Smith+brown PC

AI Summary

Core Issue: NKCDC missed the deadline for submitting the Single Audit reporting package, which was due by March 31, 2023.
Impacted Requirements: This failure violates 2 CFR 200.512, which mandates timely submission of audit reports and data collection forms.
Recommended Follow-Up: Management should establish clear processes and controls to ensure all future deadlines are met and compliance is maintained.

Finding Text

New Kensington Community Development Corporation (?NKCDC?) failed to submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse by the required due date - the earlier of 30 days after receipt of the auditor?s report(s), or nine months after the end of the period. Condition and Context The federal reporting deadline for the Single Audit reporting package was March 31, 2023; however, NKCDC did not submit its Single Audit Reporting Package by that date. Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable?.. must 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?. Cause As a result of the COVID-19 pandemic, financial constraints, and corresponding staffing challenges, the accounting and finance team at NKCDC were unable to complete the required audits on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure NKCDC remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect or Potential Effect Lateness in reporting could result in a lack of up to date information provided to federal agencies and potential impacts on grant funding. Recommendation We recommend that management implements processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials Management agrees with the finding above. Management will review the existing accounting policies and procedures and implement additional controls to validate timely submission of reports.

Corrective Action Plan

Finding 2022-001: Financial Statement Finding ? Material Weakness Corrective Action Plan NKCDC agrees with the finding above, NKCDC will review the existing accounting policies and procedures and implement a detailed process to adequately review accounting records and internal controls surrounding financial reporting. NKCDC will also review the operational resources available to expand the finance team and do so accordingly. Corrective Action Taken NKCDC has replaced its Finance Director, Dani Howard, with a new Vice President of Finance, Eric Kushner. Corrective action steps are in process with the change of staff. Expected Completion Date September 30, 2023 Responsible Individual Eric Kushner, VP of Finance Finding 2022-002: Federal Award Findings and Questioned Costs ? Significant Deficiency Corrective Action Plan NKCDC agrees with the finding above, NKCDC will review the existing accounting policies and procedures and implement a detailed process to adequately review accounting records and internal controls surrounding financial reporting. NKCDC will also review the operational resources available to expand the finance team and do so accordingly. Corrective Action Taken NKCDC has replaced its Finance Director, Dani Howard, with a new Vice President of Finance, Eric Kushner. Corrective action steps are in process with the change of staff. Expected Completion Date September 30, 2023 Responsible Individual Eric Kushner, VP of Finance Outside Correspondence To Whom It May Concern, Attached is the audit report for the New Kensington Community Development Corp for Fiscal Year Ending June 30th, 2022. NKCDC apologizes for the untimeliness of this report. Recent changes in staffing in our finance department caused a delay in completion of the audit. NKCDC has reviewed and updated its existing accounting policies and procedures, additionally we have replaced expanded our operational resources committed to financial oversight and replaced leadership within our Finance department. After review of this audit report, should you have any additional questions or require any additional information, please contact our new Vice President of Finance, Eric Kushner at ekushner@nkcdc.org Thank you

Other Findings in this Audit

39720 2022-002

Significant Deficiency
39721 2022-002

Significant Deficiency
39722 2022-002

Significant Deficiency
39723 2022-002

Significant Deficiency
39724 2022-002

Significant Deficiency
39725 2022-002

Significant Deficiency
616161 2022-002

Significant Deficiency
616162 2022-002

Significant Deficiency
616163 2022-002

Significant Deficiency
616164 2022-002

Significant Deficiency
616165 2022-002

Significant Deficiency
616166 2022-002

Significant Deficiency
616167 2022-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
16.817	Byrne Criminal Justice Innovation Program	$303,220
99.U19	Housing Stability Counseling Program	$217,302
14.218	Community Development Block Grants/entitlement Grants	$176,531
10.561	State Administrative Matching Grants for the Supplemental Nutrition Assistance Program	$121,066
21.019	Coronavirus Relief Fund	$53,695
14.169	Housing Counseling Assistance Program	$42,744
14.252	Section 4 Capacity Building for Community Development and Affordable Housing	$10,000