Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Community Service Block Grant
Assistance Listing Number: 93.569
Pass-through Agency: Pennsylvania Department of Community and Economic Development
Pass-Through Number(s): Contract #C000067069
Contract #C000082084
Award Period: July 1, 2021 – June 30, 2022
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 Awards 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 approval for expenses charged to the federal program.
Questioned Costs: None.
Context: During our testing, we noted there was a lack of supporting documentation for four out of forty transactions tested charged to the federal program totaling $1,165. There were also seventeen out of the forty transactions tested that documentation of approval for the transaction was not present.
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: Not a repeat finding.
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.