Finding 970748 (2022-006)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-04-23

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to payroll documentation for federal programs.
  • Impacted Requirements: Compliance with 3 CFR Part 200 is lacking, specifically regarding documentation for employee time and effort on federal programs.
  • Recommended Follow-Up: Implement procedures to retain necessary documentation during changes in service providers to ensure compliance with federal spending controls.

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.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 394271 2022-003
    Material Weakness Repeat
  • 394272 2022-003
    Material Weakness Repeat
  • 394273 2022-003
    Material Weakness Repeat
  • 394274 2022-003
    Material Weakness Repeat
  • 394275 2022-003
    Material Weakness Repeat
  • 394276 2022-003
    Material Weakness Repeat
  • 394277 2022-003
    Material Weakness Repeat
  • 394278 2022-003
    Material Weakness Repeat
  • 394279 2022-003
    Material Weakness Repeat
  • 394280 2022-003
    Material Weakness Repeat
  • 394281 2022-003
    Material Weakness Repeat
  • 394282 2022-004
    Material Weakness
  • 394283 2022-004
    Material Weakness
  • 394284 2022-004
    Material Weakness
  • 394285 2022-004
    Material Weakness
  • 394286 2022-004
    Material Weakness
  • 394287 2022-005
    Significant Deficiency
  • 394288 2022-005
    Significant Deficiency
  • 394289 2022-005
    Significant Deficiency
  • 394290 2022-005
    Significant Deficiency
  • 394291 2022-005
    Significant Deficiency
  • 394292 2022-006
    Significant Deficiency
  • 394293 2022-006
    Significant Deficiency
  • 394294 2022-006
    Significant Deficiency
  • 394295 2022-006
    Significant Deficiency
  • 394296 2022-006
    Significant Deficiency
  • 394297 2022-006
    Significant Deficiency
  • 394298 2022-006
    Significant Deficiency
  • 394299 2022-006
    Significant Deficiency
  • 394300 2022-006
    Significant Deficiency
  • 394301 2022-006
    Significant Deficiency
  • 394302 2022-006
    Significant Deficiency
  • 394303 2022-006
    Significant Deficiency
  • 394304 2022-006
    Significant Deficiency
  • 394305 2022-006
    Significant Deficiency
  • 394306 2022-006
    Significant Deficiency
  • 394307 2022-006
    Significant Deficiency
  • 394308 2022-006
    Significant Deficiency
  • 970713 2022-003
    Material Weakness Repeat
  • 970714 2022-003
    Material Weakness Repeat
  • 970715 2022-003
    Material Weakness Repeat
  • 970716 2022-003
    Material Weakness Repeat
  • 970717 2022-003
    Material Weakness Repeat
  • 970718 2022-003
    Material Weakness Repeat
  • 970719 2022-003
    Material Weakness Repeat
  • 970720 2022-003
    Material Weakness Repeat
  • 970721 2022-003
    Material Weakness Repeat
  • 970722 2022-003
    Material Weakness Repeat
  • 970723 2022-003
    Material Weakness Repeat
  • 970724 2022-004
    Material Weakness
  • 970725 2022-004
    Material Weakness
  • 970726 2022-004
    Material Weakness
  • 970727 2022-004
    Material Weakness
  • 970728 2022-004
    Material Weakness
  • 970729 2022-005
    Significant Deficiency
  • 970730 2022-005
    Significant Deficiency
  • 970731 2022-005
    Significant Deficiency
  • 970732 2022-005
    Significant Deficiency
  • 970733 2022-005
    Significant Deficiency
  • 970734 2022-006
    Significant Deficiency
  • 970735 2022-006
    Significant Deficiency
  • 970736 2022-006
    Significant Deficiency
  • 970737 2022-006
    Significant Deficiency
  • 970738 2022-006
    Significant Deficiency
  • 970739 2022-006
    Significant Deficiency
  • 970740 2022-006
    Significant Deficiency
  • 970741 2022-006
    Significant Deficiency
  • 970742 2022-006
    Significant Deficiency
  • 970743 2022-006
    Significant Deficiency
  • 970744 2022-006
    Significant Deficiency
  • 970745 2022-006
    Significant Deficiency
  • 970746 2022-006
    Significant Deficiency
  • 970747 2022-006
    Significant Deficiency
  • 970749 2022-006
    Significant Deficiency
  • 970750 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $4.45M
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $700,000
93.569 Community Services Block Grant $690,651
10.565 Commodity Supplemental Food Program $420,406
81.042 Weatherization Assistance for Low-Income Persons $386,001
93.569 Community Services Block Grant_discretionary Awards $167,734
14.218 Community Development Block Grants/entitlement Grants $137,926
21.020 Community Development Financial Institutions Program $71,298
10.569 Emergency Food Assistance Program (food Commodities) $60,683
14.169 Housing Counseling Assistance Program $27,811
93.568 Low-Income Home Energy Assistance $14,892
14.231 Emergency Solutions Grant Program $14,666
14.905 Lead Hazard Reduction Demonstration Grant Program $6,532
10.568 Emergency Food Assistance Program (administrative Costs) $4,751
14.239 Home Investment Partnerships Program $3,963