Finding 375560 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-12

AI Summary

  • Core Issue: There was a vacancy in low-income board representation, which does not meet the CSBG Act requirements.
  • Impacted Requirements: Compliance with the CSBG Act mandates that at least one-third of board members be democratically selected from the low-income community served.
  • Recommended Follow-Up: STEP should create procedures to ensure timely filling of board vacancies to maintain compliance.

Finding Text

COVID-19 Community Services Block Grant - Assistance Listing 93.569 passed through Pennsylvania Department of Community and Economic Development - Pass-through Grantor’s Number - C000066976; Community Services Block Grant - Assistance Listing 93.569 passed through Pennsylvania Department of Community and Economic Development - Pass- through Grantor’s Number - C000082022; Grant period - Fiscal Year Ended June 30, 2023. Criteria: The Community Services Block Grant (CSBG) Act at 42 USC 9910(a), requires nonprofit organizations administer CSBG through a board comprising not fewer than one-third of the board members are chosen in a democratic selection process adequate to assure that these members of the board are representative of the low-income individuals and families served and reside in the neighborhood served. Condition: There was a vacancy in the low income representation that reduced the required representation. Perspective Information: The vacancy, during the audit period, was July 1, 2022 - March 20, 2023. The state does not have a policy or procedure that allows a grace period to fill board vacancies. Cause: A low income representation board member resigned and STEP was unable to fill the board vacancy. Effect: STEP was not in compliance with special tests and provisions requirements for tri-partite board compliance. Questioned Costs: None. Identification of Repeat Findings: Not applicable. Recommendation: STEP should establish procedures to fill vacancies timely. Views of Responsible Officials: Management agrees with the finding. Planned Corrective Action: See STEP’s corrective action plan.

Corrective Action Plan

Management Response: STEP agrees that a plan needs to be in place to ensure one-third of Board members are representative of the low – income individuals and families served. Action Taken: STEP will revise policies and Board of Directors By-Laws to devise a plan to ensure quality one-third Board representation of the low-income individuals and families served. STEP has also been advised after reaching out, that the Pennsylvania Department of Community & Economic Development is currently working on new directives to establish policies on timeframes for board vacancies. Persons Responsible: Jim Plankenhorn, President and CEO and Board Executive Committee Anticipated Completion Date: June 30, 2024.

Categories

Special Tests & Provisions

Other Findings in this Audit

  • 375561 2023-001
    Significant Deficiency
  • 952002 2023-001
    Significant Deficiency
  • 952003 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $4.44M
93.575 Child Care and Development Block Grant $2.80M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $1.31M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.11M
93.569 Community Services Block Grant $691,755
93.558 Temporary Assistance for Needy Families $468,536
20.509 Formula Grants for Rural Areas and Tribal Transit Program $319,920
93.667 Social Services Block Grant $293,271
94.006 Americorps $285,250
81.042 Weatherization Assistance for Low-Income Persons $273,902
93.778 Medical Assistance Program $251,796
93.600 Head Start $210,641
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $175,000
10.558 Child and Adult Care Food Program $161,338
93.053 Nutrition Services Incentive Program $91,627
93.052 National Family Caregiver Support, Title Iii, Part E $80,085
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $29,172
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $16,911
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $15,892
93.042 Special Programs for the Aging_title Vii, Chapter 2_long Term Care Ombudsman Services for Older Individuals $15,360
93.324 State Health Insurance Assistance Program $13,877
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $9,731
17.235 Senior Community Service Employment Program $8,929
14.267 Continuum of Care Program $8,547
93.568 Low-Income Home Energy Assistance $6,791
93.071 Medicare Enrollment Assistance Program $6,565
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $2,712
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $1,015