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: Contract #C000067069 (2021 CSBG Expenditure Period 1/1/21 - 12/31/21)
Award Period: July 1, 2021 – June 30, 2022
Type of Finding:
Significant Deficiency 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 period of performance. The Organization should have procedures and controls in place to ensure expenses are charged to a federal program within the approved period of performance.
Condition: During our testing, we noted there were transactions charged to the federal program that were incurred prior to the beginning of the performance period.
Questioned Costs: None.
Context: During our testing of costs recorded during the beginning of the approved period of performance (January 2022), we noted there were two transactions charged to the federal program in January 2022 for utility costs. Based on the review of the supporting invoices costs were incurred prior to the beginning of the performance period in November and December 2021. The total amount of the transactions was $1,370.49.
Cause: The organization recorded the transactions into the general ledger based on the invoice date rather than the date the services were provided by the vendor.
Effect: If the organization includes expenses either incurred before the start date or after the end date of the approved period of performance, it could result in funds being required to be returned to the funding agency.
Repeat Finding: Not a repeat finding.
Recommendation: The organization should work with the federal agency to provide additional documentation or justification for the expenses, or to adjust the budget or funding limits to ensure that all expenses are within the approved period of performance. It is important to address any period of performance findings as soon as possible to avoid potential penalties or repayment obligations. The Organization should also review its process of entering invoices into the accounting software to ensure the correct period is used.
View of Responsible Officials and Planned Corrective Action: Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.