FAC Explorer

Audit 334901

FY End
2024-03-31
Total Expended
$893,929
Findings
4
Programs
7
Organization: Baden Street Settlement of Rochester, Inc. (NY)
Year: 2024 Accepted: 2024-12-27
Auditor: Efpr Group CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516982 2024-001 Significant Deficiency - A
516983 2024-002 Significant Deficiency - A
1093424 2024-001 Significant Deficiency - A
1093425 2024-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $241,312 Yes 1
10.558 Child and Adult Care Food Program $204,566 Yes 1
93.558 Temporary Assistance for Needy Families (tanf) State Programs $201,442 - 0
97.024 Emergency Food and Shelter National Board Program $120,292 - 0
93.235 Title V State Sexual Risk Avoidance Education (title V State Srae) Program $113,016 - 0
93.778 Medical Assistance Program $9,120 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $439 - 0

Contacts

Name Title Type
ENSMHJE26L65 Ron Thomas Auditee
5854456718 Christopher Johnston, CPA Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Note 1. Basis of Presentation - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Baden Street Settlement of Rochester, Inc. and is presented on 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 other government agencies. 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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Organization to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grant with periods after September 30, 2024. The Organization does not use the de minimis election. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Baden Street Settlement of Rochester, Inc. and is presented on 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 other government agencies. 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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in preparation of, the financial statements. Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Organization to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grant with periods after September 30, 2024. The Organization does not use the de minimis election.
Title: Note 2. Subrecipients Accounting Policies: Note 1. Basis of Presentation - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Baden Street Settlement of Rochester, Inc. and is presented on 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 other government agencies. 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). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent that such costs are included in the Federal financial reports used as the source for the data presented. The de minimis election allows the Organization to allocate 10% of indirect costs to grants with periods ending on or before September 30, 2024 and 15% of indirect costs to grant with periods after September 30, 2024. The Organization does not use the de minimis election. Of the federal expenditures presented in the schedule, Baden Street Settlement of Rochester, Inc. provided no federal awards to sub-recipients.

Finding Details

Finding 2024-001
FINDING 2024-001 - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027; Grant Period - For the year ended March 31, 2024 Condition: The internal controls over the maintenance and approval of timesheet data were not operating as designed. As a result, we were unable to review a supervisor signature to determine if certain timesheets were approved. Criteria: Complete records and approvals of timesheets would provide documentation of authorization to the specific employee for payroll earned and any additional payments when necessary. The Organization’s policy is to have an employee and supervisor signoff on the timecard for each pay period. Cause: The system of controls over the payroll process did not operate consistently to maintain and approve timesheet data for 9 of the 54 items selected for testing as part of the payroll testwork performed. Effect of Condition: The Organization was unable to provide documentation to verify these timesheets were approved. Questioned Cost: None Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization’s internal control system should be modified to document approval of timesheets. All employees should be adequately trained on the internal control procedures for the payroll process. Views of Responsible Officials and Planned Corrective Actions: There were two organizational changes that happened in the fiscal year that impacted this issue. First, the Executive Director retired and was replaced. Secondly the Program Director was replaced mid-year. Both are now acutely aware that the agency timesheet policies must be followed at all times. Timesheet policy will be reviewed with all Program Directors in the agency. Moreover, the agency is implementing a new payroll system that incorporates an electronic time record that supervisor, and the executive director, approval must be verified before payroll will be processed. The new system and review of current policy with all staff and program directors will ensure this internal control is followed.
Finding 2024-002
FINDING 2024-002 – Child and Adult Care Food Program (CACFP) – Assistance Listing No. 10.558; Grant Period – For the year ended March 31, 2024 Condition: The internal controls over the expense approval process were not operating as designed. As a result, we were unable to review approval on a selection of expense transactions claimed as a part of the Child and Adult Care Food Program (CACFP). Criteria: The Organization’s policy is to have dual signature approval from the purchaser, Finance Director, and Executive Director for all expenses. The Organization’s policy is to also have department and GL accounts coded onto the related invoice and signed off by the Finance Director. Proper functioning of internal controls would result in the Organization having consistent control procedures in place for expense approval. Cause: The system of controls over the Child and Adult Care Food Program (CACFP) did not operate properly to allow for the Organization to provide evidence of the specific expense and/or approval and appropriate expense coding for 2 of the 40 items selected for testing as part of allowable cost testwork performed. Effect of Condition: The Organization was unable to provide documentation to verify the specific expense transactions were approved in accordance with the purchasing policy. Questioned Cost: None Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization’s internal control system should be modified to document approval and provide general ledger coding of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: We know that current procedures capture all required documentation necessary for substantiation of every CACFP expense. We changed Accounts Payable Clerks during this fiscal year and this issue arose because of a filing error. All documentation existed, and was found after audit request, but was filled incorrectly. Accounts Payable Clerk will continue to work closely with CACFP Program Director to ensure proper documentation is presented and is an allowable cost.
Finding 2024-001
FINDING 2024-001 - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027; Grant Period - For the year ended March 31, 2024 Condition: The internal controls over the maintenance and approval of timesheet data were not operating as designed. As a result, we were unable to review a supervisor signature to determine if certain timesheets were approved. Criteria: Complete records and approvals of timesheets would provide documentation of authorization to the specific employee for payroll earned and any additional payments when necessary. The Organization’s policy is to have an employee and supervisor signoff on the timecard for each pay period. Cause: The system of controls over the payroll process did not operate consistently to maintain and approve timesheet data for 9 of the 54 items selected for testing as part of the payroll testwork performed. Effect of Condition: The Organization was unable to provide documentation to verify these timesheets were approved. Questioned Cost: None Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization’s internal control system should be modified to document approval of timesheets. All employees should be adequately trained on the internal control procedures for the payroll process. Views of Responsible Officials and Planned Corrective Actions: There were two organizational changes that happened in the fiscal year that impacted this issue. First, the Executive Director retired and was replaced. Secondly the Program Director was replaced mid-year. Both are now acutely aware that the agency timesheet policies must be followed at all times. Timesheet policy will be reviewed with all Program Directors in the agency. Moreover, the agency is implementing a new payroll system that incorporates an electronic time record that supervisor, and the executive director, approval must be verified before payroll will be processed. The new system and review of current policy with all staff and program directors will ensure this internal control is followed.
Finding 2024-002
FINDING 2024-002 – Child and Adult Care Food Program (CACFP) – Assistance Listing No. 10.558; Grant Period – For the year ended March 31, 2024 Condition: The internal controls over the expense approval process were not operating as designed. As a result, we were unable to review approval on a selection of expense transactions claimed as a part of the Child and Adult Care Food Program (CACFP). Criteria: The Organization’s policy is to have dual signature approval from the purchaser, Finance Director, and Executive Director for all expenses. The Organization’s policy is to also have department and GL accounts coded onto the related invoice and signed off by the Finance Director. Proper functioning of internal controls would result in the Organization having consistent control procedures in place for expense approval. Cause: The system of controls over the Child and Adult Care Food Program (CACFP) did not operate properly to allow for the Organization to provide evidence of the specific expense and/or approval and appropriate expense coding for 2 of the 40 items selected for testing as part of allowable cost testwork performed. Effect of Condition: The Organization was unable to provide documentation to verify the specific expense transactions were approved in accordance with the purchasing policy. Questioned Cost: None Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization’s internal control system should be modified to document approval and provide general ledger coding of all federal expenditures. Views of Responsible Officials and Planned Corrective Actions: We know that current procedures capture all required documentation necessary for substantiation of every CACFP expense. We changed Accounts Payable Clerks during this fiscal year and this issue arose because of a filing error. All documentation existed, and was found after audit request, but was filled incorrectly. Accounts Payable Clerk will continue to work closely with CACFP Program Director to ensure proper documentation is presented and is an allowable cost.