Audit 306257

FY End
2023-06-30
Total Expended
$11.93M
Findings
2
Programs
13
Year: 2023 Accepted: 2024-05-14
Auditor: Sax LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
396655 2023-001 Significant Deficiency Yes G
973097 2023-001 Significant Deficiency Yes G

Programs

Contacts

Name Title Type
DBL6VJ7GQSW9 Maria Lizardo Auditee
2128228300 Scott Goldberg Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: The Schedule includes the federal award activity of Northern Manhattan Improvement Corporation and Affiliates and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Requirements, Cost Principles, and Audit requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Northern Manhattan Improvement Corporation and Affiliates, it is not intended to, and does not present the financial positions, changes in net assets, or cash flows of Northern Manhattan Improvement Corporation and Affiliates. 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”) presents the activities in all the federal award programs of Northern Manhattan Improvement Corporation and Affiliates. All financial awards received directly from federal agencies as well as financial awards passed through other governmental agencies or not-for-profit organizations are included on the Schedule.
Title: Note 2 - Basis of Accounting Accounting Policies: The Schedule includes the federal award activity of Northern Manhattan Improvement Corporation and Affiliates and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Requirements, Cost Principles, and Audit requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Northern Manhattan Improvement Corporation and Affiliates, it is not intended to, and does not present the financial positions, changes in net assets, or cash flows of Northern Manhattan Improvement Corporation and Affiliates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule includes the federal award activity of Northern Manhattan Improvement Corporation and Affiliates and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Requirements, Cost Principles, and Audit requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Northern Manhattan Improvement Corporation and Affiliates, it is not intended to, and does not present the financial positions, changes in net assets, or cash flows of Northern Manhattan Improvement Corporation and Affiliates.
Title: Note 3 - Indirect Cost Rate Accounting Policies: The Schedule includes the federal award activity of Northern Manhattan Improvement Corporation and Affiliates and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Requirements, Cost Principles, and Audit requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Northern Manhattan Improvement Corporation and Affiliates, it is not intended to, and does not present the financial positions, changes in net assets, or cash flows of Northern Manhattan Improvement Corporation and Affiliates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Northern Manhattan Improvement Corporation and Affiliates have elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - Relationship to Basic Financial Statements Accounting Policies: The Schedule includes the federal award activity of Northern Manhattan Improvement Corporation and Affiliates and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance Requirements, Cost Principles, and Audit requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Northern Manhattan Improvement Corporation and Affiliates, it is not intended to, and does not present the financial positions, changes in net assets, or cash flows of Northern Manhattan Improvement Corporation and Affiliates. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal award expenditures are reported on the statement of activities as functional and supporting expenses. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards due to program expenditures exceeding grant limitations or capitalization policies required by GAAP.

Finding Details

2023-001: Grant Compliance Summary of Prior Year Audit Findings: The Organization is required to reach a minimum units of service requirement. The Organization was unable to meet the minimum deliverables required. The Organization did not have written communication waiving the requirement. Status: The Organization is in the process of increasing capacity in order to meet the requirements. Federal program: Awarded by the U.S. Department of Health and Human Services passed through city of New York Human Resource Administration: Temporary Assistance for Needy Families (“TANF”) ALN 93.558 for the Homelessness Prevention Law Project for the period from July 1, 2021 through June 30, 2022. Criteria: Under the Homelessness Prevention Law Project, the granting agencies requires a minimum number of units of service delivered. The Organization is required to fulfill a minimum of 1,909 units of service with a minimum of 1,432 universal access full legal representations. Condition: The Organization is required to reach a minimum units of service requirement. The Organization was unable to meet the minimum deliverables required. The Organization did not have written communication waiving the requirement. Cause: The Organization was unable to meet requirements due to capacity issues. Effect: We were unable to verify that the minimum units of service were delivered or that this requirement was waived. Context: Sax requested support to verify the minimum units of service requirement had been reached. The Organization was unable to provide support that the minimum units of service was provided. Recommendation: We recommend that the Organization implement procedures to ensure the minimum units of service requirement is met or to obtain written communication from the granting agency waiving the requirement. Views of Responsible Officials: See corrective action plan.
2023-001: Grant Compliance Summary of Prior Year Audit Findings: The Organization is required to reach a minimum units of service requirement. The Organization was unable to meet the minimum deliverables required. The Organization did not have written communication waiving the requirement. Status: The Organization is in the process of increasing capacity in order to meet the requirements. Federal program: Awarded by the U.S. Department of Health and Human Services passed through city of New York Human Resource Administration: Temporary Assistance for Needy Families (“TANF”) ALN 93.558 for the Homelessness Prevention Law Project for the period from July 1, 2021 through June 30, 2022. Criteria: Under the Homelessness Prevention Law Project, the granting agencies requires a minimum number of units of service delivered. The Organization is required to fulfill a minimum of 1,909 units of service with a minimum of 1,432 universal access full legal representations. Condition: The Organization is required to reach a minimum units of service requirement. The Organization was unable to meet the minimum deliverables required. The Organization did not have written communication waiving the requirement. Cause: The Organization was unable to meet requirements due to capacity issues. Effect: We were unable to verify that the minimum units of service were delivered or that this requirement was waived. Context: Sax requested support to verify the minimum units of service requirement had been reached. The Organization was unable to provide support that the minimum units of service was provided. Recommendation: We recommend that the Organization implement procedures to ensure the minimum units of service requirement is met or to obtain written communication from the granting agency waiving the requirement. Views of Responsible Officials: See corrective action plan.