Audit 1985

FY End
2022-12-31
Total Expended
$5.20M
Findings
2
Programs
1
Organization: Lantern Organization, Inc. (NY)
Year: 2022 Accepted: 2023-11-01

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1038 2022-001 Significant Deficiency - E
577480 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $5.20M Yes 1

Contacts

Name Title Type
ZQH4LMT5LKQ3 Judy Park Auditee
2122928400 Michael Carlon Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lantern Organization, Inc. and Affiliates 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 Lantern Organization, Inc. and Affiliates, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Lantern Organization, Inc. and Affiliates. Expenditures reported on the schedule are reported on the accrual 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. Lantern Organization, Inc. and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lantern Organization, Inc. and Affiliates 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 Lantern Organization, Inc. and Affiliates, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Lantern Organization, Inc. and Affiliates.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lantern Organization, Inc. and Affiliates 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 Lantern Organization, Inc. and Affiliates, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Lantern Organization, Inc. and Affiliates. Expenditures reported on the schedule are reported on the accrual 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. Lantern Organization, Inc. and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the schedule are reported on the accrual 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. Lantern Organization, Inc. and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lantern Organization, Inc. and Affiliates 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 Lantern Organization, Inc. and Affiliates, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Lantern Organization, Inc. and Affiliates. Expenditures reported on the schedule are reported on the accrual 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. Lantern Organization, Inc. and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Project did not provide any funds related to their federal awards to any subrecipients.
Title: Loan and Guarantee Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Lantern Organization, Inc. and Affiliates 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 Lantern Organization, Inc. and Affiliates, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of Lantern Organization, Inc. and Affiliates. Expenditures reported on the schedule are reported on the accrual 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. Lantern Organization, Inc. and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. As of December 31, 2022, there were no outstanding loans due to federal government agencies

Finding Details

Finding 2022-001 - Significant Deficiency - Lease Agreements. Criteria: The Fair Housing Act ("FHA") requires that leases between landlords and tenants must comply with applicable federal, state, and local laws, including fair housing laws. In performing our audit procedures, we noted that in some instances the rent charged per the rent roll did not agree to the approved rent per the subsidy agency. In most instances, these differences were not material and were due to timing of approvals. Condition: In some instances, The Organization's recorded rent payments do not correspond with the information per the rent rolls and tenant vouchers. Cause: The Organization's leases are not in compliance with FHA requirements. Effect: Failure to maintain accurate records could result in a loss in funding. Recommendation: Ensure that the Organization's tenant compliance policies are strictly adhered to, complying with FHA Guidance and that proper procurement documentation maintained. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. However, any differences discovered were due to timing of approvals from the New York State Department of Housing Preservation and Development. Management believes rental income is fairly stated at December 31, 2022. Responsible Officials: Mr Daniel Kent - President.
Finding 2022-001 - Significant Deficiency - Lease Agreements. Criteria: The Fair Housing Act ("FHA") requires that leases between landlords and tenants must comply with applicable federal, state, and local laws, including fair housing laws. In performing our audit procedures, we noted that in some instances the rent charged per the rent roll did not agree to the approved rent per the subsidy agency. In most instances, these differences were not material and were due to timing of approvals. Condition: In some instances, The Organization's recorded rent payments do not correspond with the information per the rent rolls and tenant vouchers. Cause: The Organization's leases are not in compliance with FHA requirements. Effect: Failure to maintain accurate records could result in a loss in funding. Recommendation: Ensure that the Organization's tenant compliance policies are strictly adhered to, complying with FHA Guidance and that proper procurement documentation maintained. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. However, any differences discovered were due to timing of approvals from the New York State Department of Housing Preservation and Development. Management believes rental income is fairly stated at December 31, 2022. Responsible Officials: Mr Daniel Kent - President.