Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Food Commodities)
Assistance Listing Number: 10.569
Pass-through Agency: Pennsylvania Department of Agriculture
Pass-through Number: 5-07-39-217
Award Period: July 1, 2021 – September 30, 2026
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of eligibility. The Organization should have procedures and controls in place to ensure distributing agencies of The Emergency Food Assistance Program (TEFAP) are eligible to receive commodities for distribution to their participants.
Condition:
During our testing, we identified there was no monitoring performed for 2 out of the 21 agencies tested which distributed TEFAP commodities during fiscal year 2023.
Questioned Costs:
None.
Context:
The Organization did not have proper internal controls in place to monitor the food distributed in a timely manner.
Cause:
The Organization had scheduling challenges with one of the agencies which resulted in a lapse in the timing of the monitoring to not be within the required two-year period. For the other agency there was documentation that could not be located.
Effect:
The Organization collected data and monitored participating agencies after year-end and without the ability to modify food distributions if any ineligible participants were discovered during the program year. No ineligible distributions were determined based on subsequent monitoring activities.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-003.
Recommendation:
The Organization should prioritize the timely monitoring of participating agencies to allow for changes in food distributions if any ineligible participants are discovered.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity Supplemental Food Program (Administrative)
Assistance Listing Number: 10.569 and 10.565
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC)
Pass-through Number: 5-07-39-217 (PDA)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
For both CSFP and TEFAP, a recipient agency must use its administrative funds for activities for the administration of the programs. Such activities include but are not limited to transporting and storing USDA Foods within the state or within a recipient agency’s service area, determining the eligibility of program applicants, publishing the times and locations of food distribution, and issuing USDA Foods to eligible persons (7 CFR sections 247.25 and 251.8(e)).
Condition:
The Organization does not have formal procedures in place to determine the Second Harvest Food Bank expenses incurred during the fiscal year that should be allocated to the TEFAP/CSFP administrative revenue received. The Organization has historically recognized revenue based on when cash is received which is not appropriate.
Questioned Costs:
None.
Context:
Management does not have a timely process for determining the allocation of eligible expenses for the administrative revenue received for the distribution of commodities. Management was able to provide a reasonable allocation methodology which was used to create the program expenditure detail for the audit period, however, was provided significantly after year-end.
Cause:
The Organization experienced turnover within the finance department which resulted in no formal procedures in place for the allocation of allowable costs.
Effect:
If the Organization does not have timely proper allocation procedures, the Organization could potentially recognize revenue that is not appropriately substantiated with allowable costs and activities in compliance with program requirements.
Repeat Finding:
No
Recommendation:
We recommend the allocation of allowable costs and activities be completed at a minimum on a quarterly basis. Also, any direct expenses related to program activities should be recorded to the respective identifying program fund number within the accounting software. The amount of revenue recognized for the programs should be reflected of the expenses incurred up to the administrative funds received from the respective funders.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures and controls in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
Effect:
If the Organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 93.569; 14.218
Pass-through Agency: Pennsylvania Department of Community and Economic Development; City of Bethlehem (CB); Northampton County (NC)
Pass-Through Number: Contract #C000067069; Contract #C000082084; B-22-MC-42-0003 (CB)
Award Period: April 1, 2020 – September 30, 2022; January 1, 2022 – December 31, 2027; January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance. In addition, in accordance with 2 CFR Part 200.403, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP), therefore payroll accruals should be appropriately reflected when recording program
expenditures.
Condition:
During our testing, we noted there were several salary expenditures charged to the grant based on the payroll period ending date, however the costs were incurred for the period 12/24/22 - 1/6/23, which the first eight days were prior to the start of the period of performance. There was also one transaction selected for testing where no supporting documentation was able to be located and one transaction that was incurred after the period of performance for the program.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the review of community service block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were observed. A portion of these expenses was incurred before the start of the contract period, specifically covering the payroll period from 12/24/22 to 1/6/23, with the first eight days outside the approved period of performance. The total amount of these transactions was $11,606. Additionally, one transaction for facilities maintenance totaling $2,625 lacked supporting documentation. Furthermore, during testing of costs recorded towards the end of the period
of performance (September 2022), there was one transaction for outside computer services amounting to $1,125, with the invoice indicating services performed in October 2022.
During the testing of community development block grant costs recorded at the beginning of the approved period of performance (January 2023), seventeen transactions charged to the federal program in January 2023 for salary and related payroll taxes were noted, with a portion incurred prior to the start of the contract period. The total amount of these transactions was $1,079.
Cause:
The Organization recorded the transactions into the general ledger based on the payroll period ending date and invoice date rather than the date the transactions were incurred by the Organization. In addition, the Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation:
The Organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices and payroll related expenses into the accounting software to ensure the correct period is used for federal expenditures.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: City of Allentown (CA); City of Bethlehem (CB); Northampton County (NC); Lehigh County (LC)
Pass-Through Number: N/A
Award Period: January 1, 2022 - December 31, 2024 (CA); January 1, 2022 - December 31, 2023 (CB); July 1, 2020 - December 31, 2022 (NC); January 1, 2020 - December 31, 2021 (LC); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); April 1, 2023 - March 24, 2024 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed.
Condition:
During our testing, we noted that 21 out of 40 transactions tested exhibited a variance in the recalculation of wages charged to the program. This variance was identified when comparing the wages charged to the program with the time and effort documented on the timesheet for the respective programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
The Organization did not have proper controls in place to ensure the salary and wages charged to the program were based on the records of the work performed.
Cause:
The Organization experienced turnover within the finance department causing a lack of a review of the salary allocations to the program.
Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential non-compliance with regulatory requirements.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
We recommend the time and effort documentation be regularly reviewed by appropriate personnel to ensure accuracy and completeness of personnel cost documentation is appropriately reported to the federal program.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.