Audit 17944

FY End
2022-12-31
Total Expended
$1.68M
Findings
14
Programs
6
Year: 2022 Accepted: 2023-08-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
19948 2022-001 - - L
19949 2022-003 Significant Deficiency - L
19950 2022-001 - - L
19951 2022-003 Significant Deficiency - L
19952 2022-002 Material Weakness - C
19953 2022-003 Significant Deficiency - L
19954 2022-003 Significant Deficiency - L
596390 2022-001 - - L
596391 2022-003 Significant Deficiency - L
596392 2022-001 - - L
596393 2022-003 Significant Deficiency - L
596394 2022-002 Material Weakness - C
596395 2022-003 Significant Deficiency - L
596396 2022-003 Significant Deficiency - L

Programs

Contacts

Name Title Type
EZZHZ8AE2GV5 Elizabeth Mbakaya Auditee
9736232800 Michae Pintabone Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of New Community Employment Services Corporation under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the New Community Employment Services Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of New Community Employment Services Corporation.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accounting principles generally accepted in the United States of America basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.3.SUB-RECIPIENTSNew Community Employment Services Corporation provided no federal awards to sub-recipients for the year ended December 31, 2022.4.INDIRECT COSTSNew Community Employment Services Corporation does not have a federally negotiated indirect cost rate on its federal contracts and New Community Employment Services Corporation has not made an election pursuant to 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 10% de minimis cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001: Untimely Submission of Quarterly Reports Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E and 84.425F Federal Award Year: 2022 Finding Type: Noncompliance Compliance Requirement: Reporting Criteria Based on the HEERF reporting compliance requirements, institutions are required to update their quarterly public reporting for both institutional aid and student aid no later than 10 days after the end of each calendar quarter. Condition and Context For a sample of 2 quarterly reports selected for testing (3rd quarter and 4th quarter of 2022), the Organization submitted both reports eleven (11) days after the end of each calendar quarter. The sample was not intended to be, and was not a statistically valid sample. Cause Due to administrative oversight, the Organization updated the quarterly reports one day late. Effect or Potential Effect The Organization is not in compliance with the timeliness of reporting requirements of the funding agency. Funds may be held or not disbursed timely from the funding source due to the late filing of reports. Questioned Costs None Recommendation The Organization should evaluate its finance and program department and increase resources as necessary to aid in compliance and implement stronger processes and internal controls to facilitate timely filings of reports. Views of Responsible Officials Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-001: Untimely Submission of Quarterly Reports Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E and 84.425F Federal Award Year: 2022 Finding Type: Noncompliance Compliance Requirement: Reporting Criteria Based on the HEERF reporting compliance requirements, institutions are required to update their quarterly public reporting for both institutional aid and student aid no later than 10 days after the end of each calendar quarter. Condition and Context For a sample of 2 quarterly reports selected for testing (3rd quarter and 4th quarter of 2022), the Organization submitted both reports eleven (11) days after the end of each calendar quarter. The sample was not intended to be, and was not a statistically valid sample. Cause Due to administrative oversight, the Organization updated the quarterly reports one day late. Effect or Potential Effect The Organization is not in compliance with the timeliness of reporting requirements of the funding agency. Funds may be held or not disbursed timely from the funding source due to the late filing of reports. Questioned Costs None Recommendation The Organization should evaluate its finance and program department and increase resources as necessary to aid in compliance and implement stronger processes and internal controls to facilitate timely filings of reports. Views of Responsible Officials Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-002: Untimely Distribution of Student Aid Funds Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E Federal Award Year: 2022 Finding Type: Material Weakness Compliance Requirement: Cash Management Criteria Based on the HEERF cash management compliance requirements, including American Rescue Plan HEERF III and related agreements, the student aid portion of HEERF funding should be disbursed within 15 calendar days of the drawdown from the Department of Education?s G5 grant system. Condition and Context We noted that as of December 31, 2022, the Organization had HEERF student aid drawdowns totaling $30,000 that were not disbursed to students until March 2023 and April 2023; therefore, amounts were not disbursed to students within 15 calendar days of the drawdown. Cause There was a delay from the Organization?s program team in providing the finance department with the proper documentation to disburse the payments to the students. Effect or Potential Effect The Organization is not in compliance with the cash management compliance requirements of the funding agency, which may potentially impact grant funding. Questioned Costs None Recommendation The Organization should evaluate its HEERF student aid process and increase resources as necessary to aid in compliance and implement processes and internal controls to facilitate timely disbursement of student aid funds in accordance with federal requirements. Views of Responsible Officials Internal controls have been strengthened to facilitate timely disbursement of student aid funds.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-001: Untimely Submission of Quarterly Reports Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E and 84.425F Federal Award Year: 2022 Finding Type: Noncompliance Compliance Requirement: Reporting Criteria Based on the HEERF reporting compliance requirements, institutions are required to update their quarterly public reporting for both institutional aid and student aid no later than 10 days after the end of each calendar quarter. Condition and Context For a sample of 2 quarterly reports selected for testing (3rd quarter and 4th quarter of 2022), the Organization submitted both reports eleven (11) days after the end of each calendar quarter. The sample was not intended to be, and was not a statistically valid sample. Cause Due to administrative oversight, the Organization updated the quarterly reports one day late. Effect or Potential Effect The Organization is not in compliance with the timeliness of reporting requirements of the funding agency. Funds may be held or not disbursed timely from the funding source due to the late filing of reports. Questioned Costs None Recommendation The Organization should evaluate its finance and program department and increase resources as necessary to aid in compliance and implement stronger processes and internal controls to facilitate timely filings of reports. Views of Responsible Officials Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-001: Untimely Submission of Quarterly Reports Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E and 84.425F Federal Award Year: 2022 Finding Type: Noncompliance Compliance Requirement: Reporting Criteria Based on the HEERF reporting compliance requirements, institutions are required to update their quarterly public reporting for both institutional aid and student aid no later than 10 days after the end of each calendar quarter. Condition and Context For a sample of 2 quarterly reports selected for testing (3rd quarter and 4th quarter of 2022), the Organization submitted both reports eleven (11) days after the end of each calendar quarter. The sample was not intended to be, and was not a statistically valid sample. Cause Due to administrative oversight, the Organization updated the quarterly reports one day late. Effect or Potential Effect The Organization is not in compliance with the timeliness of reporting requirements of the funding agency. Funds may be held or not disbursed timely from the funding source due to the late filing of reports. Questioned Costs None Recommendation The Organization should evaluate its finance and program department and increase resources as necessary to aid in compliance and implement stronger processes and internal controls to facilitate timely filings of reports. Views of Responsible Officials Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-002: Untimely Distribution of Student Aid Funds Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) Assistant Listing No: 84.425E Federal Award Year: 2022 Finding Type: Material Weakness Compliance Requirement: Cash Management Criteria Based on the HEERF cash management compliance requirements, including American Rescue Plan HEERF III and related agreements, the student aid portion of HEERF funding should be disbursed within 15 calendar days of the drawdown from the Department of Education?s G5 grant system. Condition and Context We noted that as of December 31, 2022, the Organization had HEERF student aid drawdowns totaling $30,000 that were not disbursed to students until March 2023 and April 2023; therefore, amounts were not disbursed to students within 15 calendar days of the drawdown. Cause There was a delay from the Organization?s program team in providing the finance department with the proper documentation to disburse the payments to the students. Effect or Potential Effect The Organization is not in compliance with the cash management compliance requirements of the funding agency, which may potentially impact grant funding. Questioned Costs None Recommendation The Organization should evaluate its HEERF student aid process and increase resources as necessary to aid in compliance and implement processes and internal controls to facilitate timely disbursement of student aid funds in accordance with federal requirements. Views of Responsible Officials Internal controls have been strengthened to facilitate timely disbursement of student aid funds.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.
Finding 2022-003: Untimely Submission of Data Collection Form Identification of Federal Program: Education Stabilization Fund CARES Act: Higher Education Emergency Relief Fund (HEERF) and 477 Cluster ? Temporary Assistance for Needy Families Assistant Listing No: 84.425E, 84.425F and 93.558 Federal Award Year: 2022 Finding Type: Significant Deficiency Compliance Requirement: Reporting Criteria 2 CFR 200.512 states, ?The audit must be completed and the data collection form, if applicable, must be submitted within the earlier of 30 calendar days after receipt of the auditor?s report, or nine months after the end of the audit period?. Condition and Context The federal reporting deadline for the Single Audit reporting package for the year ended December 31, 2021 was September 3, 2022, 30 days after receipt of the audit report; however, the Organization did not submit its Single Audit reporting package until October 3, 2022. Cause As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team was unable to complete the submission on a timely basis. Effect or Potential Effect Lateness in reporting could result in a lack of up-to-date information provided to federal agencies and potential impacts on grant funding. Questioned Costs None Recommendation We recommend that management implement processes and procedures to identify the required deadlines and related controls to ensure compliance with the deadlines. Views of Responsible Officials The auditor certification wasn?t provided timely. Internal controls have been strengthened to ensure timely filings of the reports.