Finding 1200790 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-30

Audit: 395805

Organization: Indiana County Community Action Program, Inc. (PA)

Auditor: WESSEL & COMPANY

AI Summary

Answer: There are issues with how payroll costs are allocated to the federal award, lacking proper documentation.
Trend: Inconsistent methodologies and unsupported estimates are being used for payroll allocations.
List: Review and strengthen documentation practices for payroll allocations to ensure they reflect actual employee activities.

Finding Text

For the major program, we identified deficiencies in the controls over payroll cost allocation. Payroll costs charged to the federal award were not consistently supported by documentation demonstrating that allocations were based on actual employee activities benefiting the program. In certain instances, allocations were applied using inconsistent methodologies or estimates that were not sufficiently supported.

Corrective Action Plan

ICCAP Management will strengthen internal controls over payroll by implementing a new daily time-tracking process within existing payroll procedures. Program Directors will enforce a mandatory 15-minute end-of-day shutdown period for staff to coplete time and activity entries. Directors will also be required to verify that all activities recorded on employee timesheets can be supported by case notes, reports, or direct visual confirmation. The fiscal department will review and address any shortages in federal funding related to payroll and will identify the approrpiate support program for reallocation prior to receiving bi-weekly payroll documentation.

Other Findings in this Audit

1200789 2025-003

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.565	COMMODITY SUPPLEMENTAL FOOD PROGRAM	$319,253
93.569	COMMUNITY SERVICES BLOCK GRANT	$197,113
14.267	CONTINUUM OF CARE PROGRAM	$113,585
10.568	EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS)	$110,127
14.231	EMERGENCY SOLUTIONS GRANT PROGRAM	$103,820
93.788	OPIOID STR	$42,289
93.150	PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH)	$30,870
93.647	SOCIAL SERVICES RESEARCH AND DEMONSTRATION	$14,799
97.024	EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM	$6,861