DCNR-2016-Dev
Dev-GPM – 9 Rev. 3-12
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF CONSERVATION AND NATURAL RESOURCES
BUREAU OF RECREATION AND CONSERVATION
Parks, Recreation & Conservation Grants
Financial Compliance Audit Procedures
Grant Agreements for $100,000 or More
A. Financial Compliance Audit
All Parks, Recreation and Conservation grants funded 100% with state funds in the amount of $100,000
or more require the submission of a Financial Compliance Audit of the grant agreement within 120 days
of either completion of project activities or the end date of the grant agreement, whichever occurs first.
B. Auditor Selection
The Financial Compliance Audit must be performed by an independent, properly licensed certified public
accountant.
1. The Commonwealth encourages the use of small audit firms and audit firms owned and controlled by
women and minorities.
2. Prior Department approval of the auditor selection is not required unless the grantee is specifically
notified in writing.
C. Scope of the Financial Compliance Audit
1. The Financial Compliance Audit must include all funds, including cash and in-kind contributions,
received under the DCNR grant agreement, as well as any contractually required private match
funds.
2. It must encompass the entire grant agreement period.
D. Components of the Financial Compliance Audit
The Financial Compliance Audit must be done in accordance with the standards set forth in the
Government Auditing Standards (GAS), current revision, and must include the following components:
1. Auditor’s Report
2. Financial Statements, including:
a. Balance Sheet (if applicable)
b. Statement of Contract Revenues, Expenditures, and Fund Balance
c. Comparison Statement of Budget to Actual Expenditures
d. Notes to the Financial Statements
3. A Report on Compliance and on Internal Control over financial reporting based on an audit of
financial statements performed in accordance with Government Auditing Standards.
4. A schedule of all findings (i.e., instances of non-compliance or deficiencies in the internal control
structure), along with all attendant costs. (These findings should also be noted in the report required
in Item #D.3. on Page 1.)
5. Grantee Response and Corrective Action Plan: The grantee response must include a plan of
corrective action to address all material findings of non-compliance or internal control weakness
disclosed in the audit report, and it must be signed by an appropriate official of the municipality or
organization.
For each finding noted in the Corrective Action Plan, include:
a. A description of the finding;
b. The specific steps to be taken to correct the situation or specific reasons why corrective action is
not necessary;
c. A timetable for performance of the corrective action steps; and
d. A description of monitoring to be performed to ensure that the steps are taken.
E. Submission of the Financial Compliance Audit Report and the Grantee Response and Corrective
Action Plan
A copy of the Financial Compliance Audit and the Grantee Response and Corrective Action Plan must
be submitted to:
Department of Conservation & Natural Resources
Bureau of Recreation and Conservation
400 Market Street, 6th Floor
Harrisburg, PA 17101-2301
Fax: 717-787-9577
F. Requests for Additional Time to Conduct the Financial Compliance Audit
1. Requests for additional time to complete a Financial Compliance Audit must be made by the CPA
firm engaged to perform the audit.
2. Requests for additional time should be directed to the Bureau of Recreation and Conservation either
by fax or mail.
3. Requests for additional time must include a completion date.
G. Requests for Confirmation of Payment Information
1. Requests for confirmations of payments made to Grantees should be directed to the Bureau of
Recreation and Conservation, Contracting & Payment Section.
2. Requests must include the grant agreement number and a postage-paid, self-addressed envelope.
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