Finding 9275 (2022-002)

Recordkeeping Condition: During our audit we requested various financial records, which included invoices. We noted that the Company had some difficulty in providing some of the requested documents. This indicated that the recordkeeping system was not adequate to produce the documents in a timely fashion. A comprehensive recordkeeping system is critical to internal control. Criteria: The Borough should maintain complete records of all financial transactions. Cause: The accounting department is not receiving a copy of the approved costs submitted to the Pennsylvania Department of Transportation for payment. Effect: The accounting department is not able to reconcile amounts received from the Pennsylvania Department of Transportation to the amounts due out to contractors. This resulted in an overpayment to the contractor. Recommendations: The accounting department should receive a copy of approved costs submitted for payment. These approved costs should then be compared to funds received in prior to payments being made to contractors. Response: The Borough’s accounting department will receive copies of all submissions for payments and/or reimbursements. These submissions will be compared to payments received in prior to payments being made to contractors.