Finding Text
Program
Community Development Block Grant Entitlement Grants Cluster (CFDA 14.218, Award Year 7/1/19-
6/30/2020, Contract #20-20155, Pass-though grantor DHCD)
Low-Income Home Energy Assistance (CFDA 93.568, Award Year 7/1/19-6/30/2020, Contract
#C000061723, Pass-through grantor Commonwealth of PA)
Criteria
Management is responsible for establishing and maintaining effective internal control over the financial
reporting function. Management is also responsible for maintaining adequate supporting documentation
for transactions and compliance elements.
Condition
CFDA 14.218 – of the sample of 25 transactions tested for allowable costs, support for three
disbursements could not be located, resulting in questioned costs of $23,803.
CFDA 93.568 – of the sample of 25 transactions tested, contracts for two vendors could not be located.
CFDA 93.568 – of the sample of 25 files tested for eligibility, one client file could not be located.
Cause
The immediate transition to remote working, as a result of the pandemic, in the middle of a significant
general ledger conversion proved challenging for PHDC. PHDC experienced inefficiencies with no
standard naming/filing convention being followed.
Effect
Without proper filing and retention of supporting documentation, we could not determine the accuracy and
compliance of the major program compliance requirements.
Recommendation
We recommend that PHDC follow procedures consistently to ensure that supporting documentation is
filed correctly.
Management’s Response to Finding
PHDC is in agreement with this finding and will complete and implement a corrective action plan.