FAC Explorer

Audit 326861

FY End
2022-06-30
Total Expended
$3.05M
Findings
12
Programs
4
Organization: Children's Home of Kingston (NY)
Year: 2022 Accepted: 2024-10-31
Auditor: Mengel Metzger Barr & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504309 2022-006 Significant Deficiency Yes L
504310 2022-006 Significant Deficiency Yes L
504311 2022-007 Significant Deficiency Yes L
504312 2022-007 Significant Deficiency Yes L
504313 2022-008 Material Weakness Yes A
504314 2022-008 Material Weakness Yes A
1080751 2022-006 Significant Deficiency Yes L
1080752 2022-006 Significant Deficiency Yes L
1080753 2022-007 Significant Deficiency Yes L
1080754 2022-007 Significant Deficiency Yes L
1080755 2022-008 Material Weakness Yes A
1080756 2022-008 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
93.676 Unaccompanied Children Program $1.20M Yes 3
10.553 School Breakfast Program $8,643 - 0
10.555 National School Lunch Program $5,597 - 0
10.649 Pandemic Ebt Administrative Costs $628 - 0

Contacts

Name Title Type
D2ZTBEJS3UV4 Fabio Alvarez Auditee
8453997190 Alan Clink, CPA 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 Agency’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: N Rate Explanation: The Agency did not elect to use the 10% de minimus cost rate. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Agency’s policy is not to charge award programs with indirect costs. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of federal award programs administered by The Children's Home of Kingston, New York (the Agency) 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 from 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 Agency.
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 Agency’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: N Rate Explanation: The Agency did not elect to use the 10% de minimus cost rate. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Agency’s policy is not to charge award programs with indirect costs. The Children's Home of Kingston, New York is a non-profit organization. All federal grant operations are included in the scope of the single audit.

Finding Details

Finding 2022-006
Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Listing 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 the annual report that was due April 30, 2021, was submitted July 8, 2021. Questioned Cost: None Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline. Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.Repeat Finding: Yes Recommendation: We recommend the Agency 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: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676
Finding 2022-006
Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Listing 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 the annual report that was due April 30, 2021, was submitted July 8, 2021. Questioned Cost: None Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline. Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.Repeat Finding: Yes Recommendation: We recommend the Agency 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: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676
Finding 2022-007
Submission to the Federal Audit Clearinghouse Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022. Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022. Questioned Costs: None Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner. Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds. Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.Submission to the Federal Audit Clearinghouse Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
Finding 2022-007
Submission to the Federal Audit Clearinghouse Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022. Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022. Questioned Costs: None Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner. Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds. Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.Submission to the Federal Audit Clearinghouse Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
Finding 2022-008
Allocation of Salaries and Other Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards. Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated. Questioned Costs: None Cause: Due to turnover in the CFO position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant. Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency. Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency. Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.
Finding 2022-008
Allocation of Salaries and Other Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards. Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated. Questioned Costs: None Cause: Due to turnover in the CFO position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant. Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency. Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency. Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.
Finding 2022-006
Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Listing 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 the annual report that was due April 30, 2021, was submitted July 8, 2021. Questioned Cost: None Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline. Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.Repeat Finding: Yes Recommendation: We recommend the Agency 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: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676
Finding 2022-006
Financial and Performance Reporting Information on Federal Program: Unaccompanied Alien Children (Assistance Listing 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 the annual report that was due April 30, 2021, was submitted July 8, 2021. Questioned Cost: None Cause: The Agency did not have a procedure in place to ensure that required reports were completed and submitted by the required due dates. Effect: All submissions of the quarterly Federal Financial Report (SF-425) and the annual report were not filed by the required deadline. Perspective Information: Review of timely submission of reporting is performed as part of the audit procedures.Repeat Finding: Yes Recommendation: We recommend the Agency 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: The Agency’s management agrees with this finding and during the 21/22 fiscal year, the CFO will develop monthly and quarterly closing procedures to aid in the timely closing and filing of reports required by Assistance Listing No. 93.676
Finding 2022-007
Submission to the Federal Audit Clearinghouse Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022. Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022. Questioned Costs: None Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner. Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds. Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.Submission to the Federal Audit Clearinghouse Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
Finding 2022-007
Submission to the Federal Audit Clearinghouse Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: Single Audits are required to be submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after the receipt of the auditor’s report or 9 months after the end of the audit period. For the year ended June 30, 2021, the due date for submission was March 30, 2022. Condition: The Agency did not submit its Single Audit to the Federal Audit Clearinghouse by March 30, 2022. Questioned Costs: None Cause: Due to significant turnover, the Agency was unable to submit the Single Audit to the Federal Audit Clearinghouse in a timely manner. Effect: The Federal Audit Clearinghouse relies on such submissions to monitor the progress of the program and the use of the federal funds. Perspective Information: Compliance with filing requirements is reviewed as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should establish and implement internal controls over financial reporting sufficient to ensure Single Audits are completed and submitted timely.Submission to the Federal Audit Clearinghouse Views of the Responsible Officials and Planned Corrective Actions: The Board of Directors will request a review of Financial Audits, annually. This will ensure Single Audits are completed and submitted in a timely manner. The Chief Executive Officer [CEO, Executive Director] will meet with the Controller weekly to ensure timely financial reporting. Reports will be provided to the board of Directors monthly.
Finding 2022-008
Allocation of Salaries and Other Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards. Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated. Questioned Costs: None Cause: Due to turnover in the CFO position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant. Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency. Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency. Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.
Finding 2022-008
Allocation of Salaries and Other Costs Information on Federal Program: Unaccompanied Alien Children (Assistance Listing No. 93.676) provided by the Department of Health and Human Services. Criteria: The Agency must follow the requirements for allocating salaries as prescribed by the Uniform Guidance and OCFS. The Uniform Guidance section 200.430 requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed and include support for the distribution of time the employee works on one or more federal award. In addition, budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards. Condition: Currently, the Agency charges direct salaries based on time and attendance records, however, other administrative costs such as maintenance, food costs and general administrative salaries were allocated based on the budget established with granting agencies. In addition, there was limited support for how costs were actually allocated. Questioned Costs: None Cause: Due to turnover in the CFO position, the previous methodology of allocating costs, which was based on the actual direct costs for the month, was unable to be recreated. There was also no review or reconciliation of expenses in comparison to the budgeted amounts that were approved by the granting agency to ensure that the Agency did not overspend the grant. Effect: Charges to the federal grants may not be accurate or may be in excess of the amounts budgeted and approved by the granting agency. Perspective Information: Payroll and disbursement transactions under the Federal program are tested for compliance with the grant documentation as part of the audit procedures. Repeat Finding: Yes Recommendation: The Agency should consider creating an allocation methodology for the salary and other costs related to the Federal program that is based on actual results, such as the actual direct costs for the month. The Agency should also develop a tracking methodology to ensure they do not overspend in any areas of the approved budget by the funding agency. Views of the Responsible Officials and Planned Corrective Actions: The Agency’s management agrees with this finding and during the upcoming fiscal year the Controller will work with various departments within the Agency to identify items that are direct charges or allocated based on percentages to the Unaccompanied Alien Children (UAC) grant where possible. Additionally, the Controller will implement quarterly time studies for allocated department salaries to ensure there is supporting documentation. Lastly, during the upcoming fiscal year the Controller will review, on a monthly or quarterly basis, the incurred expenses compared to the UAC approved budget.