Horsham TownshipLocal Government

Criteria and Condition: Cash accounts should be reconciled each month, on a timely basis, and corrections should be recorded in the general ledger. Context: For the year ended December 31, 2022, the bank reconciliations were not completed until September 19, 2023, and the correcting entries were not posted to the general ledger accounts. Cause: Due to the turnover in staff and upper management, the Entity did not complete timely reconciliations of bank accounts, and corrections and or adjustments were not posted to the general ledger. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Entity implement a policy to have the bank reconciliations completed and approved within 15 days of month-end. Also, all correcting entries identified should be posted to the general ledger. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of following good financial practices. We now have sufficient staff in order to perform the necessary bank reconciliations, ledger adjustments and correcting entries so that we don’t take a chance on having any errors in financial reporting. We will follow the recommendation of the Audit.

Criteria and Condition: While the Entity has some written financial management procedures documentation, it does not meet all the recent specific requirements under 2 CFR 200.302 in the Uniform Grant Guidance. Context: The financial management requirements under 2 CFR 200.302 require each non-federal entity maintain effective control over, and accountability for all funds, property, and other assets, including having written procedures in place. Cause: Due to the turnover in staff and upper management, the Entity did not comply with this requirement. Potential Effect: Errors could occur in financial reporting. Recommendation: We recommend the Entity update its existing policies to comply with the requirements under 2 CFR 200.302. Views of Responsible Officials and Planned Corrective Actions: Management understands the importance of defining and following the necessary policies and procedures to remain in compliance with the requirements under 2 CFR 200.302 and have sufficient staff to comply. We will follow the recommendation of the Audit.