Finding 623626 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 52823
Organization: Broad Top Township (PA)
Auditor: CPA Associates

AI Summary

  • Core Issue: The Township lacks proper segregation of duties, leading to a significant deficiency in internal controls over federal program compliance.
  • Impacted Requirements: This deficiency may cause noncompliance with federal program requirements, risking undetected issues.
  • Recommended Follow-Up: The Board of Supervisors should maintain their active role in financial oversight to strengthen existing controls.

Finding Text

2022-002: U.S. Department of Environment Protection ? Assistance Listing # 66.460 Non-Point Source Implementation Grants Lack of Segregation of Duties ? Significant Deficiency Condition & Criteria: The condition reported as item 2022-001 above also applies to the Township?s internal control over compliance with the requirements of federal programs. Effect: This condition could result in instances of noncompliance with requirements not being detected or corrected on a timely basis. Cause: Although the Township has been able to institute an additional layer of controls over its federal program expenditures, the Township?s small size and limited staff does not allow for it to have the checks and balances over the reporting and cash management functions that would be present in an ideal set of controls. Recommendation: The division of duties that does exist among the office staff is considered a compensating control, as is the close involvement of the Board of Supervisors in the financial transaction and reporting process. We urge the Board to continue their close involvement in all financial aspects, including those related to the federal programs.

Categories

Internal Control / Segregation of Duties Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 47183 2022-001
    Significant Deficiency
  • 47184 2022-002
    Significant Deficiency
  • 623625 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.460 Nonpoint Source Implementation Grants $521,621
20.205 Highway Planning and Construction $479,439
15.252 Abandoned Mine Land Reclamation (amlr) Program $42,913
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $38,702
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $0