Finding Text
Federal Agency: U.S. Department of Agriculture; U.S. Department of Health and Human Services;
U.S. Department of the Treasury
Federal Program Name: The Emergency Food Assistance Program (Administrative); Commodity
Supplemental Food Program (Administrative); Community Service Block Grant; Emergency Rental
Assistance Program
Assistance Listing Number: 10.565; 10.568; 93.569; 21.020
Pass-through Agency: Hunger Free Pennsylvania; Pennsylvania Department of Agriculture;
Pennsylvania Department of Community and Economic Development; Lehigh County
Pass-Through Number: 5-07-39-217; Contract #C000067069; Contract #C000082084
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 allowable costs and allowable activities. The Organization should have documentation supporting the internal controls for the approval of personnel costs charged to federal programs for the time and effort employees spend working on the respective programs of the Organization.
Condition: During our testing of payroll transactions for the major federal programs, we were unable review the internal control of approved timesheets for any employees with payroll periods selected for testing prior to April 2, 2022.
Questioned Costs: None identified.
Context: During our testing of payroll transactions for the major federal programs tested, we were unable review approved timesheets for any employees with payroll periods tested prior to April 2, 2022. It was noted there were proper approvals in place for the transactions selected that were processed by the new payroll provider.
Cause: The organization changed payroll providers on April 2, 2022 and no longer has access to pull time information from the old system as the provider purges all time keeping information after about 6 months.
Effect: If the organization does not have adequate controls in place and documented could result in employees being funded with federal awards in which they did not actually perform work.
Repeat Finding: Not a repeat finding.
Recommendation: The Organization should ensure when there are changes in the Organization’s service providers, there are procedures in place to ensure all necessary documentation is retained to support the controls in place for federal spending.
View of Responsible Officials and Planned Corrective Action: Please refer to Community Action Committee of the Lehigh Valley, Inc. and subsidiaries’ Corrective Action Plan.