Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Community Development Block Grant
Assistance Listing Number: 14.218
Pass-through Agency: Northampton County (NC)
Pass-Through Number: N/A
Award Period: January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC); October 1, 2021 - September 30, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining all contracts and agreements for federal funding received to ensure compliance with requirements and ensuring costs are allowable, allocable, and reasonable under the terms of the federal award.
Condition:
The Organization was unable to locate contract and/or contract extensions for federal funding awarded expended during the period.
Questioned Costs:
None.
Context:
The Organization was unable to locate one contract and two contract extension agreements for awards expended during the audit period.
Cause:
The Organization experienced turnover within the finance department and the missing supporting documentation was likely misfiled and therefore unable to be located.
Effect:
If the Organization is unable to provide contractual agreements related to federal awards, management may not be able to substantiate the allowability of costs incurred or activities performed with the funds expended. This could result in potential disallowances of costs and the need to return funds to the
federal government.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation, such as contracts or agreements, is reviewed and retained for all federal funds awarded. Implementing a standardized process for document retention and training staff on proper record-keeping practices can help mitigate this issue in the future.
View of Responsible Officials and Planned Corrective Action:
Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.