FAC Explorer

Audit 295260

FY End
2023-06-30
Total Expended
$12.86M
Findings
6
Programs
5
Organization: The Children's Home of Poughkeepsie, Inc. (NY)
Year: 2023 Accepted: 2024-03-15
Auditor: Mengel Metzger Barr & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380496 2023-001 Significant Deficiency Yes I
380497 2023-002 Significant Deficiency Yes L
380498 2023-003 Material Weakness - B
956938 2023-001 Significant Deficiency Yes I
956939 2023-002 Significant Deficiency Yes L
956940 2023-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
93.676 Unaccompanied Alien Children Program $12.67M Yes 3
10.555 National School Lunch Program $105,864 - 0
10.553 School Breakfast Program $66,630 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $12,394 - 0
10.649 Pandemic Ebt Administrative Costs $2,512 - 0

Contacts

Name Title Type
GK9HFAMNC4W9 Alyssa Bowers Auditee
8454521420 Christopher J. Healy, Cpa, Cgfm 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. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Home’s financial reporting system. The federal expenditures are recognized when the expenditure or expense transaction occurs, in accordance with Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Home has elected to use the 10% de minimus cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of federal award programs administered by The Children's Home of Poughkeepsie, New York, Inc. (the Home) using the accrual basis of accounting. Federal awards that are included in the Schedule may be received directly from federal agencies, as well as federal awards that are passed through form government agencies. The information presented in the 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). This Schedule only presents a selected portion of the operations of the District.
Title: SCOPE OF AUDIT Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable programs and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Home’s financial reporting system. The federal expenditures are recognized when the expenditure or expense transaction occurs, in accordance with Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Home has elected to use the 10% de minimus cost rate. The Children's Home of Poughkeepsie, New York, Inc. is a non-profit organization. All federal grant operations are included in the scope of the single audit.

Finding Details

Finding 2023-001
Compliance with Uniform Guidance - Procurement Suspension and Debarment Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs. Condition: During our testing for procurement compliance, it was determined that the Home did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs. Questioned Cost: None Cause: The Home was not aware of the requirement to review an entity’s status. Effect: The Home is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Home could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs. Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation. Repeat Finding: Yes Recommendation: We recommend the Home review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs. Views of the Responsible Officials and Planned Corrective Actions: This item was included in the 6/30/22 Report on Compliance for Major Federal Programs which was finalized in February 2023. The G/L Vendor List was found to contain many inactive vendors and was modified. Beginning in October 2023, management began sending the vendor List to EPStaffCheck on a monthly basis. Each vendor is run through OIG (Office of Inspector General for Excluded Individuals/Entities); OIG_Most_Wanted (Fugitives}; SAM (System for Award Management for excluded parties); SON.Office of Foreign Assets Control (Specially Designated Nationals) and NY _Medicaid (Exclusion List).
Finding 2023-002
Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Lising No. 93.676) provided by the Department of Health and Human Services. Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report. Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that seven of eight required quarterly reports were not filed by the required due date. In addition, the annual submission for long-term foster care was filed after the required due date. Questioned Cost: None Cause: The Home did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Effect: Seven submissions of the quarterly, and one annual submission of Federal Financial Report (SF-425) were not filed by the required deadlines. Perspective Information: The Home has been operating at reduced staffing levels and has had turnover in finance positions which has disrupted normal operations. Repeat Finding: Yes Recommendation: We recommend the Home implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates. Views of the Responsible Officials and Planned Corrective Actions: CHP underwent a transition in Fiscal leadership during this fiscal year. In addition, CHP was assigned a new Grant Management Specialist that rejected FFR reports for missing information that was not previously provided. Corrections were made following the rejections and the resubmission dates were updated with the latter date. CHP will continue to utilize a recurring calendar reminder.
Finding 2023-003
Allowable Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Lising No. 93.676) provided by the Department of Health and Human Services. Criteria: 2 CFR Part 200 Section 200.403(e) states that in order for costs to be allowable under federal awards they must be determined in accordance with generally accepted accounting principles (GAAP). 2 CFR Part 200 Section 200.403(h) states that costs must be incurred during the budget period. Condition: During our testing of compliance related to allowable costs for award 90ZU041701 it was determined that costs related to the previous award (90ZU027903) period were not claimed in the amount of $349,082. Questioned Cost: None Cause: The Home did not have a procedure in place to reconcile and review that claims included all allowable expenses and that all claims were made prior to the close out of the award period. Effect: Award 90ZU027903 was under-claimed by $349,082 based on allowable costs. Perspective Information: Upon commencing employment, the new Chief Financial Officer implemented a process to review allowable costs on a weekly basis, with a year-todate review done weekly in addition. Repeat Finding: No Recommendation: We recommend the Home implement a procedure to review and reconcile that all claims for each individual award are submitted. Views of the Responsible Officials and Planned Corrective Actions: With the transition to a new CFO, allowable costs are now reviewed on a weekly basis, in addition to a year-todate review being done weekly, by award.
Finding 2023-001
Compliance with Uniform Guidance - Procurement Suspension and Debarment Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6 state that a non-Federal entity must review that an entity with which it plans to enter into a covered transaction is not debarred, suspended, or otherwise excluded from participation in federal award programs. Condition: During our testing for procurement compliance, it was determined that the Home did not verify that vendors charged to the major program are not debarred, suspended, or otherwise excluded from participation in federal award programs. Questioned Cost: None Cause: The Home was not aware of the requirement to review an entity’s status. Effect: The Home is not in compliance with 2 CFR Sections 200.212, 200.318(h), and 180.300 and 48 CFR Section 52.209-6. As a result, the Home could enter into covered transactions with entities that are debarred, suspended, or otherwise excluded from participation in federal award programs. Perspective Information: Vendors in excess of the $25,000 threshold were reviewed to determine if they are debarred, suspended, or otherwise excluded from participation in federal award programs. None were noted to be ineligible for participation. Repeat Finding: Yes Recommendation: We recommend the Home review and document the verification that vendors are not debarred, suspended, or otherwise excluded from participation in federal award programs. Views of the Responsible Officials and Planned Corrective Actions: This item was included in the 6/30/22 Report on Compliance for Major Federal Programs which was finalized in February 2023. The G/L Vendor List was found to contain many inactive vendors and was modified. Beginning in October 2023, management began sending the vendor List to EPStaffCheck on a monthly basis. Each vendor is run through OIG (Office of Inspector General for Excluded Individuals/Entities); OIG_Most_Wanted (Fugitives}; SAM (System for Award Management for excluded parties); SON.Office of Foreign Assets Control (Specially Designated Nationals) and NY _Medicaid (Exclusion List).
Finding 2023-002
Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Lising No. 93.676) provided by the Department of Health and Human Services. Criteria: Compliance under Unaccompanied Alien Children (Assistance Listing No. 93.676): Financial Reporting Requirements, submission of SF-425, Federal Financial Report. Condition: During our testing of compliance with the submission of the SF-425, Federal Financial Report, we noted that seven of eight required quarterly reports were not filed by the required due date. In addition, the annual submission for long-term foster care was filed after the required due date. Questioned Cost: None Cause: The Home did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Effect: Seven submissions of the quarterly, and one annual submission of Federal Financial Report (SF-425) were not filed by the required deadlines. Perspective Information: The Home has been operating at reduced staffing levels and has had turnover in finance positions which has disrupted normal operations. Repeat Finding: Yes Recommendation: We recommend the Home implement a procedure or checklist to ensure that the required reports are completed and submitted by the required due dates. Views of the Responsible Officials and Planned Corrective Actions: CHP underwent a transition in Fiscal leadership during this fiscal year. In addition, CHP was assigned a new Grant Management Specialist that rejected FFR reports for missing information that was not previously provided. Corrections were made following the rejections and the resubmission dates were updated with the latter date. CHP will continue to utilize a recurring calendar reminder.
Finding 2023-003
Allowable Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Lising No. 93.676) provided by the Department of Health and Human Services. Criteria: 2 CFR Part 200 Section 200.403(e) states that in order for costs to be allowable under federal awards they must be determined in accordance with generally accepted accounting principles (GAAP). 2 CFR Part 200 Section 200.403(h) states that costs must be incurred during the budget period. Condition: During our testing of compliance related to allowable costs for award 90ZU041701 it was determined that costs related to the previous award (90ZU027903) period were not claimed in the amount of $349,082. Questioned Cost: None Cause: The Home did not have a procedure in place to reconcile and review that claims included all allowable expenses and that all claims were made prior to the close out of the award period. Effect: Award 90ZU027903 was under-claimed by $349,082 based on allowable costs. Perspective Information: Upon commencing employment, the new Chief Financial Officer implemented a process to review allowable costs on a weekly basis, with a year-todate review done weekly in addition. Repeat Finding: No Recommendation: We recommend the Home implement a procedure to review and reconcile that all claims for each individual award are submitted. Views of the Responsible Officials and Planned Corrective Actions: With the transition to a new CFO, allowable costs are now reviewed on a weekly basis, in addition to a year-todate review being done weekly, by award.