Finding Text
Incomplete Documentation - Material Weakness Federal Program: Assistance Listing #14.228 Community Development Block Grants - CV - Small Business Assistance Program, Passed Through Pennsylvania Department of Community and Economic Development, Pass-Through Entity Identifying Number: C000082605 Prior Year Finding Number: N/A Criteria: The Uniform Guidance requires grantees to design and implement internal controls over compliance to ensure that costs charged to federal programs be reasonable and necessary to the performance of the program, consistently applied to federal and non-federal programs, conform to generally accepted accounting principles, not be included as a cost of any other federally financed program and be adequately documented. Condition/Context: During the testing of the Center's activities, one (1) of the nine (9) disbursements selected for testing did not have an application checklist that was reviewed and approved prior to awarding and disbursement of funds. While we were ultimately able to determine that the cost was allowable and met the program objectives, the lack of a timely completed internal review process constitutes a deficiency in internal control over compliance. Questioned Costs: N/A Cause: Lack of consistent oversight and formal review and approval policies. Effect: The Center does not have a formally documented internal review process, consistently applied, such that activities could occur without appropriate supporting documentation and/or for unallowable activities or costs. Recommendation: We recommend that Center revisit its internal control processes to add additional, formally documented, steps to ensure activities and costs are appropriately supported and that there is a documented internal review and documentation process for all activities. Views of Responsible Officials and Planned Corrective Actions: Management understands and is considering how to better document its processes; see corrective action plan.