FAC Explorer

Audit 327105

FY End
2023-12-31
Total Expended
$5.60M
Findings
4
Programs
3
Organization: Brightside Up, Inc. (NY)
Year: 2023 Accepted: 2024-11-04
Auditor: Mengel Metzger Barr & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504528 2023-001 Significant Deficiency - I
504529 2023-002 Significant Deficiency - L
1080970 2023-001 Significant Deficiency - I
1080971 2023-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.558 Child and Adult Care Food Program $1.77M Yes 2
93.575 Child Care and Development Block Grant $130,829 - 0
10.574 Team Nutrition Grants $7,732 - 0

Contacts

Name Title Type
QDMWL9LGKTH3 Keely Weise Auditee
5184267181 Heather R. Lewis, CPA Auditor
No contacts on file

Notes to SEFA

Title: Non-Cash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grantor identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not receive or expend federal awards in the form of non-cash assistance during the year ended December 31, 2023.
Title: Federal Loans and Loan Guarantees Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grantor identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization had no federal loans or loan guarantees outstanding as of December 31, 2023.
Title: Insurance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grantor identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization did not participate in any federal insurance programs for the year ended December 31, 2023.
Title: Matching Costs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grantor identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards does not include matching costs.
Title: Audits by Other Auditors Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grantor identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no audits by other auditors of the Organization’s federal award programs during the year ended December 31, 2023.
Title: Basis of Presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or other cost principles applicable to not-for-profit organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Grantor identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the activity of all federal award programs of Brightside Up, Inc. (the Organization) for the year ended December 31, 2023. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

Finding 2023-001
Child and Adult Care Food Program - Procurement Information on Federal Program: U.S. Department of Agriculture Child and Adult Care Food Program (Federal Assistance Listing Number 10.558) passed through the New York State Department of Health. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management, we noted that the Organization is not following its procurement procedures for the Child and Adult Care Food Program purchases and it is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. Statement of Cause: The Organization did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The Organization is not in compliance with 2 CFR Section 200.213. The Organization is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the Organization could be overpaying for goods and services. Questioned Costs: None. Perspective Information: As part of the required procurement testing, a review of a sampling of the vendors charged to the Child and Adult Care Food program and therefore represented purchases with federal dollars was performed. Of the Organization’s vendors charged, none selected were suspended or debarred from participation in Federal assistance programs or activities. Recommendation: We recommend that the Organization review the requirements of 2 CFR Section 200.213 and ensure that their procurement procedures are being followed and that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of responsible officials and planned corrective actions: Brightside Up, Inc. will review the procurement policy and document considerations for any vendors that meet the thresholds and make sure they are in compliance under Sam.gov.
Finding 2023-002
Data Collection Form Statement of Condition: The Single Audit was not filed within 9 months after year end as required by the Federal Audit Clearing House. Criteria: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearing House the earlier of 30 calendar days after the reports are received from the auditor or 9 months after the end of the reporting period. Therefore, the December 31, 2023 reporting package deadline was September 30, 2024. Statement of Cause: The Organization had some delays in providing financial information relating to new standards implemented during the year ended December 31, 2023. Statement of Effect: The Organization was not in compliance with federal guidelines. Questioned Costs: None. Perspective Information: As part of the audit process, compliance with federal guidelines is reviewed, including timely submission of the reporting package to the Federal Audit Clearing House. Identification of Repeat Finding: No Recommendation: We recommend that the Organization continue to look over new standard information when applicable and in a timely manner, to ensure that there is sufficient time to implement in time for the audit. Views of responsible officials and planned corrective actions: Brightside Up, Inc. will stay updated with any new standards and implement necessary practices to stay in compliance.
Finding 2023-001
Child and Adult Care Food Program - Procurement Information on Federal Program: U.S. Department of Agriculture Child and Adult Care Food Program (Federal Assistance Listing Number 10.558) passed through the New York State Department of Health. Criteria: CFR Section 200.318 stipulates that a non-Federal entity must use its own documented procurement procedures which reflect applicable state, local, and tribal laws and regulations, provided that the procurements conform to applicable Federal law and the standards identified in Part 200 Subpart D. Additionally, 2 CFR Section 200.213 stipulates that no awards, subawards, or contracts be awarded to parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Statement of Condition: During our discussions with management, we noted that the Organization is not following its procurement procedures for the Child and Adult Care Food Program purchases and it is not verifying the eligibility of vendors to participate in Federal assistance programs on an annual basis. Statement of Cause: The Organization did not review compliance requirements related to procurement outlined in 2 CFR Section 200.318 and Section 200.213. Statement of Effect: The Organization is not in compliance with 2 CFR Section 200.213. The Organization is not performing required procedures, as a result, vendors that are not eligible for participation in Federal assistance programs or activities could be selected or the Organization could be overpaying for goods and services. Questioned Costs: None. Perspective Information: As part of the required procurement testing, a review of a sampling of the vendors charged to the Child and Adult Care Food program and therefore represented purchases with federal dollars was performed. Of the Organization’s vendors charged, none selected were suspended or debarred from participation in Federal assistance programs or activities. Recommendation: We recommend that the Organization review the requirements of 2 CFR Section 200.213 and ensure that their procurement procedures are being followed and that a review of the eligibility of potential vendors to participate in Federal assistance programs or activities is performed prior to disbursing funds to the vendor. Views of responsible officials and planned corrective actions: Brightside Up, Inc. will review the procurement policy and document considerations for any vendors that meet the thresholds and make sure they are in compliance under Sam.gov.
Finding 2023-002
Data Collection Form Statement of Condition: The Single Audit was not filed within 9 months after year end as required by the Federal Audit Clearing House. Criteria: 2 CFR section 200.512(a) requires the reporting package and data collection form to be submitted to the Federal Audit Clearing House the earlier of 30 calendar days after the reports are received from the auditor or 9 months after the end of the reporting period. Therefore, the December 31, 2023 reporting package deadline was September 30, 2024. Statement of Cause: The Organization had some delays in providing financial information relating to new standards implemented during the year ended December 31, 2023. Statement of Effect: The Organization was not in compliance with federal guidelines. Questioned Costs: None. Perspective Information: As part of the audit process, compliance with federal guidelines is reviewed, including timely submission of the reporting package to the Federal Audit Clearing House. Identification of Repeat Finding: No Recommendation: We recommend that the Organization continue to look over new standard information when applicable and in a timely manner, to ensure that there is sufficient time to implement in time for the audit. Views of responsible officials and planned corrective actions: Brightside Up, Inc. will stay updated with any new standards and implement necessary practices to stay in compliance.