BROAD TOP TOWNSHIP

2023-001 - Internal Control over Financial Reporting – Lack of Segregation of Duties – Significant Deficiency Condition & Criteria: The small size of the Township’s office staff does not allow for adequate segregation of duties. Standard practice regarding the design of a good system of internal controls relies at least in part on a system of checks and balances accomplished by having different employees performing various functions within the accounting cycle. These checks and balances are not possible when the same person performs all of an interrelated series of tasks. Although the Township does have some compensating controls in place, there are still a number of situations where one person is responsible for all aspects of a transaction. Effect: The condition could result in errors being made in the accounting records and going undetected due to the lack of “cross-checking” and could result in the undetected misappropriation of Township assets. Cause: The size of the Township, and its budget, make it impractical for the Township to hire the additional personnel needed to provide for optimum segregation of duties. 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. Views of Responsible Officials and Planned Corrective Actions: The Township understands the potential effects of the condition described above but agrees that it would not be cost beneficial to hire additional personnel in order to provide for more adequate segregation of duties at this time. The Board continues to closely monitor the financial transaction process; and has in place a number of control procedures over the financial transaction process to provide for as much segregation of duties as is possible given the size of the Township’s staff. At their monthly public meetings, the three Township Supervisors personally review and formally approve the list of all bills proposed for payment and each month’s complete financial statements. The Township has in place a requirement that two authorized signatures are required on all check, and at least one member of the Board must personally sign all checks issued by the Township. In addition, the Township Treasurer is bonded. The Board intends to continue its close involvement in, and oversight over, the financial transaction process.

2023-001 Internal Control over Financial Reporting - Lack of Segregation of Duties – Significant Deficiency Condition & Criteria: The small size of the Township’s office staff does not allow for adequate segregation of duties. Standard practice regarding the design of a good system of internal controls relies at least in part on a system of checks and balances accomplished by having different employees performing various functions within the accounting cycle. These checks and balances are not possible when the same person performs all of an interrelated series of tasks. Although the Township does have some compensating controls in place, there are still a number of situations where one person is responsible for all aspects of a transaction. Planned Action: The Township acknowledges the potential effects of this condition. However, for such a small organization as we are, the Township believes that it would not be cost beneficial to hire additional personnel in order to provide for adequate segregation of duties. As a compensating control, the Board continues to closely monitor the financial transaction process and has a number of control procedures in place to provide for the segregation of duties as much as possible given the size of the Township’s staff.

2022-001

2023-002: U.S. Department of Housing and Urban Development – Assistance Listing # 14.239 Home Investment Partnerships Program Lack of Segregation of Duties – Significant Deficiency Condition & Criteria: The condition reported as item 2023-001 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. Views of Responsible Officials and Planned Corrective Actions: The Township understands the potential effects of the condition described above but agrees that it would not be cost beneficial to hire additional personnel in order to provide for more adequate segregation of duties at this time. The Board continues to closely monitor the financial transaction process; and has in place a number of control procedures over the financial transaction process to provide for as much segregation of duties as is possible given the size of the Township’s staff. At their monthly public meetings, the three Township Supervisors personally review and formally approve the list of all bills proposed for payment and each month’s complete financial statements. The Township has in place a requirement that two authorized signatures are required on all checks, and at least one member of the Board must personally sign all checks issued by the Township. In addition, the Township Treasurer is bonded. The Board intends to continue its close involvement in, and oversight over, the financial transaction process.

2023-002 U.S. Department of Housing and Urban Development– Assistance Listing # 14.239 Home Investment Partnerships Program Lack of Segregation of Duties – Significant Deficiency Condition & Criteria: The condition reported as item 2023-001 above also applies to the Township’s internal control over compliance with the requirements of federal programs. Planned Corrective Action: The Township acknowledges the potential effects of this condition. However, for such a small organization as we are, the Township believes that it would not be cost beneficial to hire additional personnel to provide for adequate segregation of duties at this time. The Board of Supervisors continues to closely monitor the financial transaction processes and has several control procedures in place to provided for as much segregation of duties as possible given the size of the Township’s staff. The following are the control procedures over federal programs that the Township currently has in place: • One Township supervisor is involved in the day-to-day activities of the federal program as he serves as the project manager for all Township projects. • The three Township supervisors personally review and formally approve the list of all bills proposed for payment (including those for federal programs and projects) at their monthly public meetings. In addition, the Township has a requirement that all checks require two authorized signatures, one of which must be a Township supervisor. • Each month’s complete financial statements are reviewed by the three supervisors at the monthly public meetings, and grant activities and updates are presented and discussed as well.

2022-002

2022-001 - Internal Control over Financial Reporting ? Lack of Segregation of Duties ? Significant Deficiency Condition & Criteria: The small size of the Township?s office staff does not allow for adequate segregation of duties. Standard practice regarding the design of a good system of internal controls relies at least in part on a system of checks and balances accomplished by having different employees performing various functions within the accounting cycle. These checks and balances are not possible when the same person performs all of an interrelated series of tasks. Although the Township does have some compensating controls in place, there are still a number of situations where one person is responsible for all aspects of a transaction. Effect: The condition could result in errors being made in the accounting records and going undetected due to the lack of ?cross-checking? and could result in the undetected misappropriation of Township assets. Cause: The size of the Township, and its budget, make it impractical for the Township to hire the additional personnel needed to provide for optimum segregation of duties. 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.

The Township understands the potential effects of the condition described above but agrees that it would not be cost beneficial to hire additional personnel in order to provide for more adequate segregation of duties at this time. The Board continues to closely monitor the financial transaction process; and has in place a number of control procedures over the financial transaction process to provide for as much segregation of duties as is possible given the size of the Township?s staff. At their monthly public meetings, the three Township Supervisors personally review and formally approve the list of all bills proposed for payment and each month?s complete financial statements. The Township has in place a requirement that two authorized signatures are required on all check, and at least one member of the Board must personally sign all checks issued by the Township. In addition, the Township Treasurer is bonded. The Board intends to continue its close involvement in, and oversight over, the financial transaction process.

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.

The Township understands the potential effects of the condition described above but agrees that it would not be cost beneficial to hire additional personnel in order to provide for more adequate segregation of duties at this time. The Board continues to closely monitor the financial transaction process; and has in place a number of control procedures over the financial transaction process to provide for as much segregation of duties as is possible given the size of the Township?s staff. At their monthly public meetings, the three Township Supervisors personally review and formally approve the list of all bills proposed for payment and each month?s complete financial statements. The Township has in place a requirement that two authorized signatures are required on all check, and at least one member of the Board must personally sign all checks issued by the Township. In addition, the Township Treasurer is bonded. The Board intends to continue its close involvement in, and oversight over, the financial transaction process.

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

2015-002