Finding 497924 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-24
Audit: 320540
Organization: Yardley Borough (PA)

AI Summary

  • Core Issue: The Organization lacks adequate financial management procedures as required by 2 CFR 200.302, leading to potential errors in financial reporting.
  • Impacted Requirements: Key areas needing improvement include increased documentation, time and effort reporting for payroll, and specific purchasing considerations.
  • Recommended Follow-Up: Update existing policies to align with 2 CFR 200.302 requirements and ensure compliance by 2024.

Finding Text

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-002 Material Weakness Reporting Criteria and Condition: While the Organization has some written financial management procedures documentation, it does not meet all the recent specific requirements under 2 CFR 200.302 in the Uniform Grant Guidance. Context: The financial management requirements under 2 CFR 200.302 require each non-federal entity maintain effective control over, and accountability for all funds, property, and other assets, including having written procedures in place. Key changes which effect the Organization include: • Increased documentation • Time and effort reporting for payroll • Specific purchasing consideration Cause: The Borough did not implement adequate controls to ensure compliance with this reporting requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Organization update its existing policies to comply with the requirements under 2 CFR 200.302. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302. Borough of Yardley will implement these policies and procedures to ensure that the organization will comply going forward. Repeat: Repeat finding from 2017-002 Action Taken: The Borough will review guidance and create missing policies. Anticipated Completion: During 2024.

Corrective Action Plan

SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-002 Material Weakness Reporting Criteria and Condition: While the Organization has some written financial management procedures documentation, it does not meet all the recent specific requirements under 2 CFR 200.302 in the Uniform Grant Guidance. Context: The financial management requirements under 2 CFR 200.302 require each non-federal entity maintain effective control over, and accountability for all funds, property, and other assets, including having written procedures in place. Key changes which effect the Organization include: • Increased documentation • Time and effort reporting for payroll • Specific purchasing consideration Cause: The Borough did not implement adequate controls to ensure compliance with this reporting requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Organization update its existing policies to comply with the requirements under 2 CFR 200.302. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302. Borough of Yardley will implement these policies and procedures to ensure that the organization will comply going forward. Repeat: Repeat finding from 2017-002 Action Taken: The Borough will review guidance and create missing policies. Anticipated Completion: During 2024.

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 497925 2023-002
    Material Weakness Repeat
  • 497926 2023-002
    Material Weakness Repeat
  • 497927 2023-001
    Material Weakness
  • 497928 2023-001
    Material Weakness
  • 497929 2023-001
    Material Weakness
  • 1074366 2023-002
    Material Weakness Repeat
  • 1074367 2023-002
    Material Weakness Repeat
  • 1074368 2023-002
    Material Weakness Repeat
  • 1074369 2023-001
    Material Weakness
  • 1074370 2023-001
    Material Weakness
  • 1074371 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.36M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1,949