FAC Explorer

Finding 524189 (2022-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-02-21
Audit: 343362
Organization: City of Harrisburg (PA)
Auditor: Boyer & Ritter LLC

AI Summary

  • Core Issue: The City inaccurately submitted Form SF-425 and IDIS Cash on Hand Reports for 2022, affecting financial reporting accuracy.
  • Impacted Requirements: Reports must adhere to cash or accrual basis as per guidelines, but expenses were reported in the wrong periods.
  • Recommended Follow-up: The City should establish clear procedures to ensure future reports are accurate and timely, following the correct accounting methods.

Finding Text

U.S. Department of Housing and Urban Development - Lead Hazard Reduction Grant Program (ALN #14.905) & Community Development Block Grants/ Entitlement Grants Cluster (ALN #14.218) Condition: The City did not accurately submit Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Reports for the years ended December 31, 2022. Criteria: Form SF-425, Federal Financial Report & IDIS Cash on Hand Quarterly Report instructions require the reporting to be on either the cash basis or the accrual basis. The Form SF-425 submissions erroneously omitted expenses incurred and paid during the incorrect financial reporting period. Cause: During 2021 & 2022, City personnel did not have an accurate understanding as to the basis of the reporting. Additionally, the City staff experienced some technical challenges with the HUD information technology platforms that created additional delays. Effect: The City reported cash basis expenses in its programs in the incorrect year during 2021 and worked to catch up the reporting during the 2022 year. Questioned Costs: This finding does not result in questioned costs. Recommendation: The City should implement procedures to ensure that all required reports are completed consistent with the noted basis of accounting. Views of Responsible Officials: The City acknowledges these report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.

Corrective Action Plan

January 31, 2025 To Whom it May Concern: The City of Harrisburg, Pennsylvania respectfully submits the following summarized corrective action plan for the Fiscal year ending December 31, 2022. The Audit Report was prepared by Boyer & Ritter LLC, Certified Public Accountants and Consultants, 211 House Avenue Camp Hill, PA 17011. Related findings are described in detail as contained within the City’s Single Audit Report, schedule of findings and questioned costs, and such are numbered in the corrective action plan in accordance with that assigned in the schedule. Any questions regarding this plan can be directed to Bryan McCutcheon, Accounting Manager at bmccutcheon@harrisburgpa.gov. Bryan McCutcheon, Accounting Manager City of Harrisburg Building and Housing Development Director of Housing and Economic Development By or before 12/31/20025 The City acknowledges applicable report forms were submitted incorrectly and understands the correct methodology to follow on such future submissions. Procedures have been developed to ensure timely and accurate submissions of the reports.

Categories

Reporting

Other Findings in this Audit

  • 524188 2022-003
    Material Weakness Repeat
  • 524190 2022-005
    Material Weakness Repeat
  • 524191 2022-004
    Material Weakness Repeat
  • 524192 2022-005
    Material Weakness Repeat
  • 1100630 2022-003
    Material Weakness Repeat
  • 1100631 2022-004
    Material Weakness Repeat
  • 1100632 2022-005
    Material Weakness Repeat
  • 1100633 2022-004
    Material Weakness Repeat
  • 1100634 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $11.54M
14.218 Community Development Block Grants/entitlement Grants $2.00M
14.905 Lead Hazard Reduction Demonstration Grant Program $1.24M
14.231 Emergency Solutions Grant Program $987,139
14.239 Home Investment Partnerships Program $558,204
16.034 Coronavirus Emergency Supplemental Funding Program $161,333
14.900 Lead-Based Pain Hazard Control in Privately-Owned Housing $76,155
16.012 Alcohol, Tobacco, and Firearms_training Assistance $12,080
16.607 Bulletproof Vest Partnership Program $2,668
93.103 Food and Drug Administration Research $1,675