FAC Explorer

Audit 19742

FY End
2022-08-31
Total Expended
$792,693
Findings
4
Programs
3
Organization: Nachlas Bais Yaakov INC (NJ)
Year: 2022 Accepted: 2023-07-24
Auditor: Hutman & Hutman LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22736 2022-221 Significant Deficiency - I
22737 2022-222 Significant Deficiency - L
599178 2022-221 Significant Deficiency - I
599179 2022-222 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.559 Summer Food Service Program for Children $336,092 Yes 0
10.553 School Breakfast Program $183,996 Yes 0
10.555 National School Lunch Program $13,099 Yes 0

Contacts

Name Title Type
Y2EET946TVN5 Sara Robinson Auditee
7329943935 Jacob Hutman Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Nachlas Bais Yaakov,Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of Nachlas Bais Yaakov, Inc. (the School) under programs of the federal government for the yearended August 31, 2022. The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations (CFR), Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the School, it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of the School.
Title: Child Nutrition Programs: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Nachlas Bais Yaakov,Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Nachlas Bais Yaakov, Inc. was approved by the State of New Jerseys Department of Agriculture, underthe National School Lunch Act and Child Nutrition Act of 1966, to operate the Food Nutrition Programwhich includes both the School Breakfast Program and the National School Lunch Program as well as theSummer Food Service Program during the summer.
Title: Use of Estimates: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Nachlas Bais Yaakov,Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect certain reported amounts anddisclosures. Accordingly, actual results could differ from those estimates.
Title: Subsequent Events: Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Nachlas Bais Yaakov,Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Management considers events and transactions that occur after the financials statement date, butbefore the financial statements are issued, to provide additional evidence relative to certain estimatesor to identify matters that require additional disclosure. These financial statements were available to beissued on July 10, 2023 and subsequent events have been evaluated through that date.

Finding Details

Finding 2022-221
Condition: The School did not document the procurement process for a few vendors according to the procurement standards as codified under OMB Circular 2 CFR 200. Significant Deficiency Criteria: The School is required to follow certain procurement procedures including maintaining records of its procurement history and following the requirements of each procurement method being used. Cause: The School did not have clear communication with its employees about the division of responsibility relating to procurement and, although procurement was in fact done, the School failed to document it properly for a few vendors. Effect of Finding: After discussions with management, the auditor has determined that although the School failed to document the procurement process properly, they were in fact following the required procurement process as codified under OMB Circular 2 CFR. As such, the effects of this deficiency are minimal. Recommendation: To ensure that each employee involved in the procurement process has a clear understanding of their responsibilities to ensure that the procurement process is documented properly for all vendors View of Responsible Party and Planned Corrective Action: Since being made aware of the issue, the school?s administrator met with each of the employees involved in procurement and discussed their responsibilities to ensure that procurement is documented properly. As such, the required correction actions have been implemented.
Finding 2022-222
Condition: The audit report was due to be received by the State of New Jersey no later than May 31, 2023. As a result, the audit was not submitted timely. Significant Deficiency Criteria: The School is required to submit an audit to the State of New Jersey no later than nine months after their yearend. Cause: The School was unsure of the type of audit required due to a new program that was received during the year. This caused the audit to be delayed. Effect of Finding: The effect of this noncompliance is minimal. Recommendation: The School should alert the auditor about new funding received during the year to give ample time to research and prepare. View of Responsible Party and Planned Corrective Action: The administrator will monitor the School?s funding that they receive throughout the year and will alert the auditor as soon as they receive funding from a new program. As such, the required corrective actions have been implemented.
Finding 2022-221
Condition: The School did not document the procurement process for a few vendors according to the procurement standards as codified under OMB Circular 2 CFR 200. Significant Deficiency Criteria: The School is required to follow certain procurement procedures including maintaining records of its procurement history and following the requirements of each procurement method being used. Cause: The School did not have clear communication with its employees about the division of responsibility relating to procurement and, although procurement was in fact done, the School failed to document it properly for a few vendors. Effect of Finding: After discussions with management, the auditor has determined that although the School failed to document the procurement process properly, they were in fact following the required procurement process as codified under OMB Circular 2 CFR. As such, the effects of this deficiency are minimal. Recommendation: To ensure that each employee involved in the procurement process has a clear understanding of their responsibilities to ensure that the procurement process is documented properly for all vendors View of Responsible Party and Planned Corrective Action: Since being made aware of the issue, the school?s administrator met with each of the employees involved in procurement and discussed their responsibilities to ensure that procurement is documented properly. As such, the required correction actions have been implemented.
Finding 2022-222
Condition: The audit report was due to be received by the State of New Jersey no later than May 31, 2023. As a result, the audit was not submitted timely. Significant Deficiency Criteria: The School is required to submit an audit to the State of New Jersey no later than nine months after their yearend. Cause: The School was unsure of the type of audit required due to a new program that was received during the year. This caused the audit to be delayed. Effect of Finding: The effect of this noncompliance is minimal. Recommendation: The School should alert the auditor about new funding received during the year to give ample time to research and prepare. View of Responsible Party and Planned Corrective Action: The administrator will monitor the School?s funding that they receive throughout the year and will alert the auditor as soon as they receive funding from a new program. As such, the required corrective actions have been implemented.