Finding 589546 (2022-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 17459
Organization: Borough of Berwick (PA)

AI Summary

  • Core Issue: The Borough is relying on auditors to draft financial statements instead of hiring a qualified accountant.
  • Impacted Requirements: This approach may compromise the quality and accuracy of financial reporting.
  • Recommended Follow-up: Management should take responsibility for preparing financial statements and notes as advised by auditors.

Finding Text

2022-004 General - Financial Statement Preparation In connection with the audit of the Borough?s financial statements, like most smaller local governmental entities, management has requested that the auditors assist in the drafting of the schedule of expenditures of federal awards. Effect: Borough management has determined that it is more cost-beneficial to utilize the services of its auditors to assist in drafting financial statements, as opposed to hiring a professional accountant trained in such matters. Population and Items Tested: N/A; Finding is based upon the understanding and review of the internal control system. Auditor's Recommendation: Management should prepare the financial statements and related notes. The Borough?s planned corrective action is in its Corrective Action Plan at the end of this report.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 13104 2022-004
    Material Weakness
  • 13105 2022-005
    Significant Deficiency
  • 589547 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.65M
14.239 Home Investment Partnerships Program $263,907
16.710 Public Safety Partnership and Community Policing Grants $141,274
14.218 Community Development Block Grants/entitlement Grants $70,927