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.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 027 – Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Federal Award Identification Number and Year: Various Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 029 – Supporting Documentation Federal Agency: Department of Agriculture Federal Program Name: Supplemental Nutritional Assistance Program (SNAP) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 235KY414Q3903 - 2023 Award Period: July 1, 2022 – June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented. Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained. Questioned costs: None. Context: During our testing, it was noted that 1 out of the 17 tested that the University did not maintain proper support for the expenditure. Cause: The University did not maintain documentation to support the expenditure. Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures. Repeat Finding: No. Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Views of responsible officials: There is no disagreement with the audit finding.
Block Grants for Prevention and Treatment of Substance Abuse ALN No. 93.959 U.S. Department of Health and Human Services Opioid STR ALN No. 93.788 U.S. Department of Health and Human Services Criteria or Specific Requirement – Activities Allowed and Unallowed and Cost Principles – 2 CFR Part 200, Subpart E, and Period of Performance – 2 CFR sections 200.308, 200.309, and 200.403(h) Condition – A sample of 80 expenditures were selected from each of the following populations: • ALN No. 93.959 – 1,631 items totaling $1,399,666 • ALN No. 93.788 – 1,728 items totaling $2,664,710 The samples were not, and are not intended to be, statistically valid. Of the 80 expenditures tested from each grant program, the following were determined to lack appropriate supporting documentation to support being charged to grant program: • ALN No. 93.959 - 47 items totaling $48,756, including projected errors over the total population totaling $582,093 • ALN No. 93.788 - 7 items totaling $30,061, including projected errors over the total population totaling $138,133 The Organization did not have adequate supporting documentation demonstrating actual time and effort reporting and lacked evidence of supporting invoices. Cause – The Organization charged budgeted percentages to the grant programs without a system in place to monitor and track that actual time and effort was consistent with budgeted percentages. In addition, the Organization charged expenditures to the grant programs without evidence of supporting invoices. Effect or potential effect – Costs charged to the grant programs could have varied from actual time and effort. In addition, costs charged to the grant could not be supported by actual invoices. Questioned costs – • ALN No. 93.959 - $48,756 • ALN No. 93.788 - $30,061 Context – The Organization did not have a reasonable methodology of allocating costs to these grant programs and did not maintain proper supporting invoices. Identification as a repeat finding, if applicable – Repeat finding (2022-003). Recommendation – Management should implement policies and procedures that strengthen internal control over compliance in relation to activities allowed and cost principles. The policy and procedure should be designed to ensure that a reasonable allocation methodology is implemented and followed or that time and effort is certified by the employee on a regular basis. In addition, management should implement a document retention policy consistent with 2 CFR 200.334.
Block Grants for Prevention and Treatment of Substance Abuse ALN No. 93.959 U.S. Department of Health and Human Services Opioid STR ALN No. 93.788 U.S. Department of Health and Human Services Criteria or Specific Requirement – Activities Allowed and Unallowed and Cost Principles – 2 CFR Part 200, Subpart E, and Period of Performance – 2 CFR sections 200.308, 200.309, and 200.403(h) Condition – A sample of 80 expenditures were selected from each of the following populations: • ALN No. 93.959 – 1,631 items totaling $1,399,666 • ALN No. 93.788 – 1,728 items totaling $2,664,710 The samples were not, and are not intended to be, statistically valid. Of the 80 expenditures tested from each grant program, the following were determined to lack appropriate supporting documentation to support being charged to grant program: • ALN No. 93.959 - 47 items totaling $48,756, including projected errors over the total population totaling $582,093 • ALN No. 93.788 - 7 items totaling $30,061, including projected errors over the total population totaling $138,133 The Organization did not have adequate supporting documentation demonstrating actual time and effort reporting and lacked evidence of supporting invoices. Cause – The Organization charged budgeted percentages to the grant programs without a system in place to monitor and track that actual time and effort was consistent with budgeted percentages. In addition, the Organization charged expenditures to the grant programs without evidence of supporting invoices. Effect or potential effect – Costs charged to the grant programs could have varied from actual time and effort. In addition, costs charged to the grant could not be supported by actual invoices. Questioned costs – • ALN No. 93.959 - $48,756 • ALN No. 93.788 - $30,061 Context – The Organization did not have a reasonable methodology of allocating costs to these grant programs and did not maintain proper supporting invoices. Identification as a repeat finding, if applicable – Repeat finding (2022-003). Recommendation – Management should implement policies and procedures that strengthen internal control over compliance in relation to activities allowed and cost principles. The policy and procedure should be designed to ensure that a reasonable allocation methodology is implemented and followed or that time and effort is certified by the employee on a regular basis. In addition, management should implement a document retention policy consistent with 2 CFR 200.334.
Criteria: Disbursements made to vendors ought to be supported with an invoice. Cost principles in 2 CFR 200.403(g) require adequate documentation. Condition: A transaction selected for testing did not have adequate documentation to support the payment that was made. Cause: The lack of a formal record keeping process to allow for invoices to be retained in a rational manner caused documentation to be misplaced. Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire are weakened. Failure to obtain and/or retain a receipt to support payment increases the risk that an inappropriate disbursement is made. Questioned costs: The questioned cost is immaterial as related to this charge without documentation. Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform Guidance. The organization has not required a compliance audit in previous years and management was not aware of the various requirements of the Uniform Guidance. This was a single instance from a nonstatistical haphazard sample. 29 Recommendation: We recommend that processes and procedures be developed to ensure that all supporting documentation is filed and retained in a safe and secure location for future reference, as needed. Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.