Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services; U.S. Department of Housing and Urban Development
Federal Program Name: Commodity Supplemental Food Program (Administrative); The Emergency Food Assistance Program (Administrative); Community Service Block Grant; Community Development Block Grant
Assistance Listing Number: 10.565; 10.568; 93.569; 14.218
Pass-through Agency: Hunger Free Pennsylvania (HFP); Pennsylvania Department of Agriculture (PDA); Lehigh County (LC); Northampton County (NC); Carbon County (CC); Pennsylvania Department of Community and Economic Development (DCED)
Pass-Through Number(s): 5-07-39-217 (PDA); Contract #C000067069 (DCED); City of Allentown (CA) Contract #C000082084 (DCED)
Award Period: October 1, 2021 – June 30, 2023 (HFP); October 1, 2019 – September 30, 2023 (PDA) October 1, 2020 – September 30, 2021(LC, NC, CC); October 1, 2021 – September 30, 2022 (LC, NC, CC); October 1, 2022 – September 30, 2023 (LC, NC, CC); April 1, 2020 – September 30, 2022 (DCED); January 1, 2021 – September 30, 2022 (DCED); January 1, 2022 – December 31, 2027 (DCED); July 1, 2020 - December 31, 2022 (NC); January 1, 2022 – December 31, 2023 (CA); January 1, 2022 - September 15, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September, 2022 (NC)
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Other Matters
Criteria:
3 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 and controls 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, reviewed, and retained to support all transactions.
Condition:
During our testing, we noted there was a lack of supporting documentation and/or an approval for expenses charged to the federal programs.
Questioned Costs:
No questioned costs above the $25,000 threshold have been identified.
Context:
During the testing of the food distribution cluster programs, it was observed that there was a lack of supporting documentation for two out of forty transactions tested, and no approval documentation for four out of the forty transactions tested totaling $3,442. In the testing of the community service block grant, it was found that there was a lack of supporting documentation for one out of sixty transactions tested, and no approval documentation for fifteen out of the sixty transactions tested totaling $2,238.73. The respective payment documentation for two transactions was also unable to be located. In the testing of the community development block grant, it was noted that there was a lack of supporting documentation for three out of forty transactions tested, and no approval documentation for two out of
the forty transactions tested totaling $15,902. The respective payment documentation for one transaction was also unable to be located.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located. Also, due to the turnover in the Organization, there was a lapse in the approval process surrounding credit card purchases.
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:
The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-004.
Recommendation:
The Organization should review its internal controls and procedures to ensure all supporting
documentation is retained for federally funded purchases. Also, management should implement an
approval control for purchases incurred on the Organizations credit cards.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective
Action Plan.