East Franklin TownshipLocal Government

The Authority acknowledges the finding and is in the process of developing written policies and procedures to address the federal compliance requirements. We anticipate formal adoption by the Board in the near future.

The Township recognizes that the lack of maintaining a fixed asset ledger adds to the risk of misstating the General Fixed Assets column of the DCED prescribed form and increases the risk of noncompliance with federal grant requirements. To mitigate this risk, the Supervisors need to be more actively involved in reviewing and approving all purchases of fixed assets. The Township is not in a financial position to pay an outside service provider to aid in developing a fixed asset ledger.

The Township recognizes that the limited number of staff adds to the risk associated with the daily operations. To mitigate this risk, the Supervisors need to be more actively involved in reviewing and approving all disbursements. The Township is not in a financial position to hire additional accounting staff to segregate all duties.

The Township recognizes that the lack of a formal accounting manual inhibits the ability to communicate and maintain consistent accounting policies and procedures. To mitigate this risk, the Township ensures key personnel undergo cross-training on essential tasks so that they be performed in the absence of specific individuals. The Township will continue to evaluate opportunities to strengthen internal documentation as resources allow.