FAC Explorer

Audit 331728

FY End
2023-12-31
Total Expended
$3.30M
Findings
2
Programs
5
Organization: Ali Forney Center, Inc. (NY)
Year: 2023 Accepted: 2024-12-10
Auditor: Padilla and Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513772 2023-001 Significant Deficiency - G
1090214 2023-001 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $1.10M Yes 1
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $1.05M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $992,269 Yes 0
14.276 Youth Homelessness Demonstration Program $110,424 - 0
16.320 Services for Trafficking Victims $39,539 - 0

Contacts

Name Title Type
CKRYD9S3HKM4 Alexander Roque Auditee
2122223427 Katherine Lazaro Auditor
No contacts on file

Notes to SEFA

Title: General information Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified cash basis of accounting. Certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the activities in certain federal awards programs of the not-for-profit entities included in the financial statements of Ali Forney Center for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts in the Schedule may differ from amounts presented in, or used in the presentation of the financial statements. 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.
Title: Basis of Accounting Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified cash basis of accounting. Certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified cash basis of accounting. Certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Relationship to Basic Financial Statements Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified cash basis of accounting. Certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Federal program expenditures are reported in the statements of functional expenses as program 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 capitalization of assets, organizations matching or in-kind contributions.

Finding Details

Finding 2023-001
Criteria: According to the Compliance Supplement 2CFR Part 200, Appendix XI and the terms of the Continuum of Care Program Grant Agreement and HUD regulations, recipients are required to provide a non-federal match of 25% to complement the federal funds provided. The matching funds must be appropriately documented and reported to ensure compliance with the grant terms. Condition: During our review of the Continuum of Care Program grant funded by the U.S. Department of Housing and Urban Development (HUD), we noted that the Organization failed to meet the required match for the grant period of April 1, 2022 to March 31, 2023. The grant agreement stipulates a matching contribution of 25%, which has not been fully met. The HUD was already aware of this noncompliance and has advised the Organization to ensure that there is 25% matching contribution moving forward in its budget. Cause:The Organization did not properly allocate sufficient resources to meet the matching requirement or did not obtain adequate non-federal funds to satisfy the grant conditions. Effect: Failure to comply with the matching requirement places the organization in violation of the grant agreement, which may result in penalties including the withholding of future grant funds, required repayment of HUD funds, or other administrative actions by HUD. Additionally, the noncompliance may negatively affect the organization’s eligibility for future HUD funding. Recommendation: We recommend that Organization take immediate corrective action to satisfy the matching requirement. This may involve allocating additional non-federal resources to meet the match or revising current financial strategies. The organization should also ensure that all matching contributions are properly documented and reported to HUD as required. Additionally, we suggest developing a process to regularly monitor compliance with grant terms to prevent future instances of noncompliance.
Finding 2023-001
Criteria: According to the Compliance Supplement 2CFR Part 200, Appendix XI and the terms of the Continuum of Care Program Grant Agreement and HUD regulations, recipients are required to provide a non-federal match of 25% to complement the federal funds provided. The matching funds must be appropriately documented and reported to ensure compliance with the grant terms. Condition: During our review of the Continuum of Care Program grant funded by the U.S. Department of Housing and Urban Development (HUD), we noted that the Organization failed to meet the required match for the grant period of April 1, 2022 to March 31, 2023. The grant agreement stipulates a matching contribution of 25%, which has not been fully met. The HUD was already aware of this noncompliance and has advised the Organization to ensure that there is 25% matching contribution moving forward in its budget. Cause:The Organization did not properly allocate sufficient resources to meet the matching requirement or did not obtain adequate non-federal funds to satisfy the grant conditions. Effect: Failure to comply with the matching requirement places the organization in violation of the grant agreement, which may result in penalties including the withholding of future grant funds, required repayment of HUD funds, or other administrative actions by HUD. Additionally, the noncompliance may negatively affect the organization’s eligibility for future HUD funding. Recommendation: We recommend that Organization take immediate corrective action to satisfy the matching requirement. This may involve allocating additional non-federal resources to meet the match or revising current financial strategies. The organization should also ensure that all matching contributions are properly documented and reported to HUD as required. Additionally, we suggest developing a process to regularly monitor compliance with grant terms to prevent future instances of noncompliance.