Finding Text
TIMING OF AUDIT COMPLETION - SIGNIFICANT DEFICIENCY
Federal Program
Community Development Block Grant/Entitlement Grant ALN 14.218; passed through the County of Berks
HOME Investment Partnership Program ALN 14.239; passed through the County of Berks
Emergency Rental Assistance ALN 21.023; passed through the County of Berks
Criteria
Certain debt agreements require the Authority to submit audited financial statements to the lender within 120 to 270 days after the end of each fiscal year. Additionally, the audit was required to be submitted to the Federal Audit Clearinghouse by September 30, 2023.
Condition
The 2022 financial statement audit was not completed until April of 2025.
Cause
The significant increase in grant funding limited staff capacity to prepare for and provide information requested for the audit. For example, key reconciliations needed to support balances were not prepared by management prior to the audit.
Effect
Due to the delays in preparing for the audit, audited financial statements were not provided to the bank within the timeline prescribed in certain debt agreements. This could limit future borrowing ability of the Authority. Additionally, the delay in the audit will cause the Authority to be considered a high-risk auditee by the Uniform Guidance for the following two years. Questioned Costs
None
Context
The Authority was unable to meet filing deadlines for bank loans as well as the data collection form submission.
Repeat Finding
Yes. 2021-003.
Recommendation
We recommend that the Authority revisit job descriptions and staff capacity as well as evaluate needed training so that there is adequate time to gather and provide necessary audit information in a timely manner. Job descriptions should assign responsibility for this process, as well as provide a level of review for accountability.
Management Response
See corrective action plan included in this report package.