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: Lehigh County (LC); Northampton County (NC)
Pass-Through Number: N/A
Award Period: March 27, 2020 - September 30, 2023 (LC); January 1, 2021 - December 31, 2022 (NC); January 1, 2021 - September 15, 2022 (NC)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
The Organization is responsible for maintaining comprehensive documentation to ensure compliance with all federal award reporting requirements.
Condition:
The Organization was unable to locate documentation related to performance and financial reporting.
Questioned Costs:
None.
Context:
The Organization could not find the performance reports for three contracts and the financial report for one contract in the federal program.
Cause:
Due to turnover in the finance department, reporting documentation was likely misfiled or not saved before submission to the funding agency.
Effect:
In the event that the Organization fails to provide documentation demonstrating that reports were correctly submitted to the federal awarding agency, management may be unable to verify compliance with the established requirements for federal funding.
Repeat Finding:
N/A: Not a repeat finding
Recommendation:
The Organization should review its internal controls and procedures to ensure all relevant documentation 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.