Finding Text
2023-004
Federal Agency: U.S. Department of Agriculture
Federal Program Name: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program
Assistance Listing Number: 10.561
Pass-through Agency: The Pennsylvania State University
Pass-through Number: S003654-COP-TFT
Award Period: October 1, 2022 - September 30, 2023
Compliance Requirement Affected: Allowable Costs
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
Criteria:
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures in place to ensure federal funds are only expended on allowable costs and allowable activities as dictated in the contract and budget of the program. Proper documentation should be maintained and reviewed to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation for the purchase of program supplies in the amount of $200 charged to the federal programs.
Questioned Costs:
None
Context:
During the testing, it was also noted management was unable to locate the supporting documentation for two transactions totaling $200.
Cause:
The organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the organization does not retain proper supporting documentation for federal expenditures, it could result in funds being required to returned to the funding agency.
Repeat Finding:
Yes - see finding 2022-002.
Recommendation:
We recommend The Food Trust review its practices to ensure all supporting documentation is retained for federal purchases.
Viewed of Responsible Officials and Planned Corrective Actions:
Please refer to The Food Trust’s Corrective Action Plan.