FAC Explorer

Audit 341825

FY End
2024-06-30
Total Expended
$5.45M
Findings
6
Programs
8
Organization: Cny Works, Inc. (NY)
Year: 2024 Accepted: 2025-02-10
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
522594 2024-001 Significant Deficiency - AB
522595 2024-001 Significant Deficiency - AB
522596 2024-001 Significant Deficiency - AB
1099036 2024-001 Significant Deficiency - AB
1099037 2024-001 Significant Deficiency - AB
1099038 2024-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $1.52M Yes 0
17.278 Wioa Dislocated Worker Formula Grants $1.49M Yes 1
17.258 Wioa Adult Program $1.14M Yes 1
17.259 Wioa Youth Activities $1.12M Yes 1
17.277 Wioa National Dislocated Worker Grants / Wia National Emergency Grants $144,637 - 0
17.245 Trade Adjustment Assistance $13,626 - 0
17.289 Community Project Funding/congressionally Directed Spending $13,433 - 0
84.048 Career and Technical Education -- Basic Grants to States $4,114 - 0

Contacts

Name Title Type
CJ18YRELJB75 Sue Cooley Auditee
3154738250 Keeley Hines Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal financial assistance programs administered by CNY Works, Inc. (the Organization), an entity as defined in the basic financial statements. The information in this schedule is presented on the accrual basis and in accordance with 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 this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports for each program. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards presents the activity of federal financial assistance programs administered by CNY Works, Inc. (the Organization), an entity as defined in the basic financial statements. The information in this schedule is presented on the accrual basis and in accordance with 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 this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
Title: EXPENDITURES OF FEDERAL AWARDS Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal financial assistance programs administered by CNY Works, Inc. (the Organization), an entity as defined in the basic financial statements. The information in this schedule is presented on the accrual basis and in accordance with 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 this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports for each program. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The amounts reported as expenditures of federal awards were obtained from the accounting records utilized to record activity for the applicable program and periods. These accounting records are periodically reconciled to the appropriate federal financial reports for each program. The federal expenditures are recorded on an accrual basis, in accordance with accounting principles generally accepted in the United States of America.
Title: INDIRECT COSTS Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal financial assistance programs administered by CNY Works, Inc. (the Organization), an entity as defined in the basic financial statements. The information in this schedule is presented on the accrual basis and in accordance with 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 this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports for each program. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports for each program. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.
Title: MATCHING COSTS Accounting Policies: The accompanying schedule of expenditures of federal awards presents the activity of federal financial assistance programs administered by CNY Works, Inc. (the Organization), an entity as defined in the basic financial statements. The information in this schedule is presented on the accrual basis and in accordance with 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 this schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports for each program. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Matching costs, i.e., the Organization’s share of certain program costs, are not included in the reported expenditures.

Finding Details

Finding 2024-001
Part III – Federal Award Findings and Questioned Costs Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entity: New York State Department of Labor WIOA Cluster 17.258, 17.259 and 17.278 Program Year: 2023 Criteria: According to the Uniform Guidance in CFR Part 200, Part 4, activities allowed or unallowed and allowable costs/cost principles (A/B) include the use of funds to reduce an individual’s dependence on federally funded government assistance programs and promote job preparedness and work opportunities. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with activities allowed or unallowed and allowable costs/cost principles requirements, according to the Uniform Guidance. According to the Uniform Guidance in CFR Part 200, Part 4, eligibility (E) for individuals participating in job preparedness and work opportunities will be for those deemed to be financially needy based upon a pre-determined definition established by New York State. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with eligibility requirements, according to the Uniform Guidance. Cause/Condition: The Organization’s current policies and procedures are not operating effectively to ensure only allowable activities and allowable costs (in this case, the hours worked) were allocated and charged to the federal program. In 1 of 25 cases tested, a timecard to substantiate hours worked as part of the job preparedness and work opportunities program was not able to be located and provided. The Organization’s current policies and procedures are not operating effectively to ensure only individuals who have been deemed to be eligible are participating and being paid through the job preparedness and work opportunities program(s). In 1 of 25 cases tested, Form LDSS 4770 was not able to be located to make the determination the applicant is eligible for participation. Context: In both cases we haphazardly selected a sample of 25 employees’ participating in the workforce program during the fiscal year ending June 30, 2024. 25 Part III – Federal Award Findings and Questioned Costs (Continued) Reference: 2024-001 (Continued) Questioned Costs: No known questioned costs Effect: The Organization’s internal control over compliance related to activities allowed or unallowed or allowable costs/cost principles, as well as over eligibility, did not operate as designed. As such, immaterial noncompliance occurred. Without effective operation of the current policies and procedures, an increased likelihood for noncompliance and potential questioned costs in future years exists. Recommendation: We recommend that management review existing policies and procedures over compliance requirements related to activities allowed or unallowed, allowable costs/cost principles, as well as eligibility, and ensure internal control procedures are adequate and operating as intended. We also suggest that management develop a means for testing and monitoring the operational effectiveness of those internal controls over compliance and document any mitigating controls that are developed and implemented. Management’s Response: See response on the next page.
Finding 2024-001
Part III – Federal Award Findings and Questioned Costs Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entity: New York State Department of Labor WIOA Cluster 17.258, 17.259 and 17.278 Program Year: 2023 Criteria: According to the Uniform Guidance in CFR Part 200, Part 4, activities allowed or unallowed and allowable costs/cost principles (A/B) include the use of funds to reduce an individual’s dependence on federally funded government assistance programs and promote job preparedness and work opportunities. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with activities allowed or unallowed and allowable costs/cost principles requirements, according to the Uniform Guidance. According to the Uniform Guidance in CFR Part 200, Part 4, eligibility (E) for individuals participating in job preparedness and work opportunities will be for those deemed to be financially needy based upon a pre-determined definition established by New York State. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with eligibility requirements, according to the Uniform Guidance. Cause/Condition: The Organization’s current policies and procedures are not operating effectively to ensure only allowable activities and allowable costs (in this case, the hours worked) were allocated and charged to the federal program. In 1 of 25 cases tested, a timecard to substantiate hours worked as part of the job preparedness and work opportunities program was not able to be located and provided. The Organization’s current policies and procedures are not operating effectively to ensure only individuals who have been deemed to be eligible are participating and being paid through the job preparedness and work opportunities program(s). In 1 of 25 cases tested, Form LDSS 4770 was not able to be located to make the determination the applicant is eligible for participation. Context: In both cases we haphazardly selected a sample of 25 employees’ participating in the workforce program during the fiscal year ending June 30, 2024. 25 Part III – Federal Award Findings and Questioned Costs (Continued) Reference: 2024-001 (Continued) Questioned Costs: No known questioned costs Effect: The Organization’s internal control over compliance related to activities allowed or unallowed or allowable costs/cost principles, as well as over eligibility, did not operate as designed. As such, immaterial noncompliance occurred. Without effective operation of the current policies and procedures, an increased likelihood for noncompliance and potential questioned costs in future years exists. Recommendation: We recommend that management review existing policies and procedures over compliance requirements related to activities allowed or unallowed, allowable costs/cost principles, as well as eligibility, and ensure internal control procedures are adequate and operating as intended. We also suggest that management develop a means for testing and monitoring the operational effectiveness of those internal controls over compliance and document any mitigating controls that are developed and implemented. Management’s Response: See response on the next page.
Finding 2024-001
Part III – Federal Award Findings and Questioned Costs Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entity: New York State Department of Labor WIOA Cluster 17.258, 17.259 and 17.278 Program Year: 2023 Criteria: According to the Uniform Guidance in CFR Part 200, Part 4, activities allowed or unallowed and allowable costs/cost principles (A/B) include the use of funds to reduce an individual’s dependence on federally funded government assistance programs and promote job preparedness and work opportunities. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with activities allowed or unallowed and allowable costs/cost principles requirements, according to the Uniform Guidance. According to the Uniform Guidance in CFR Part 200, Part 4, eligibility (E) for individuals participating in job preparedness and work opportunities will be for those deemed to be financially needy based upon a pre-determined definition established by New York State. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with eligibility requirements, according to the Uniform Guidance. Cause/Condition: The Organization’s current policies and procedures are not operating effectively to ensure only allowable activities and allowable costs (in this case, the hours worked) were allocated and charged to the federal program. In 1 of 25 cases tested, a timecard to substantiate hours worked as part of the job preparedness and work opportunities program was not able to be located and provided. The Organization’s current policies and procedures are not operating effectively to ensure only individuals who have been deemed to be eligible are participating and being paid through the job preparedness and work opportunities program(s). In 1 of 25 cases tested, Form LDSS 4770 was not able to be located to make the determination the applicant is eligible for participation. Context: In both cases we haphazardly selected a sample of 25 employees’ participating in the workforce program during the fiscal year ending June 30, 2024. 25 Part III – Federal Award Findings and Questioned Costs (Continued) Reference: 2024-001 (Continued) Questioned Costs: No known questioned costs Effect: The Organization’s internal control over compliance related to activities allowed or unallowed or allowable costs/cost principles, as well as over eligibility, did not operate as designed. As such, immaterial noncompliance occurred. Without effective operation of the current policies and procedures, an increased likelihood for noncompliance and potential questioned costs in future years exists. Recommendation: We recommend that management review existing policies and procedures over compliance requirements related to activities allowed or unallowed, allowable costs/cost principles, as well as eligibility, and ensure internal control procedures are adequate and operating as intended. We also suggest that management develop a means for testing and monitoring the operational effectiveness of those internal controls over compliance and document any mitigating controls that are developed and implemented. Management’s Response: See response on the next page.
Finding 2024-001
Part III – Federal Award Findings and Questioned Costs Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entity: New York State Department of Labor WIOA Cluster 17.258, 17.259 and 17.278 Program Year: 2023 Criteria: According to the Uniform Guidance in CFR Part 200, Part 4, activities allowed or unallowed and allowable costs/cost principles (A/B) include the use of funds to reduce an individual’s dependence on federally funded government assistance programs and promote job preparedness and work opportunities. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with activities allowed or unallowed and allowable costs/cost principles requirements, according to the Uniform Guidance. According to the Uniform Guidance in CFR Part 200, Part 4, eligibility (E) for individuals participating in job preparedness and work opportunities will be for those deemed to be financially needy based upon a pre-determined definition established by New York State. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with eligibility requirements, according to the Uniform Guidance. Cause/Condition: The Organization’s current policies and procedures are not operating effectively to ensure only allowable activities and allowable costs (in this case, the hours worked) were allocated and charged to the federal program. In 1 of 25 cases tested, a timecard to substantiate hours worked as part of the job preparedness and work opportunities program was not able to be located and provided. The Organization’s current policies and procedures are not operating effectively to ensure only individuals who have been deemed to be eligible are participating and being paid through the job preparedness and work opportunities program(s). In 1 of 25 cases tested, Form LDSS 4770 was not able to be located to make the determination the applicant is eligible for participation. Context: In both cases we haphazardly selected a sample of 25 employees’ participating in the workforce program during the fiscal year ending June 30, 2024. 25 Part III – Federal Award Findings and Questioned Costs (Continued) Reference: 2024-001 (Continued) Questioned Costs: No known questioned costs Effect: The Organization’s internal control over compliance related to activities allowed or unallowed or allowable costs/cost principles, as well as over eligibility, did not operate as designed. As such, immaterial noncompliance occurred. Without effective operation of the current policies and procedures, an increased likelihood for noncompliance and potential questioned costs in future years exists. Recommendation: We recommend that management review existing policies and procedures over compliance requirements related to activities allowed or unallowed, allowable costs/cost principles, as well as eligibility, and ensure internal control procedures are adequate and operating as intended. We also suggest that management develop a means for testing and monitoring the operational effectiveness of those internal controls over compliance and document any mitigating controls that are developed and implemented. Management’s Response: See response on the next page.
Finding 2024-001
Part III – Federal Award Findings and Questioned Costs Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entity: New York State Department of Labor WIOA Cluster 17.258, 17.259 and 17.278 Program Year: 2023 Criteria: According to the Uniform Guidance in CFR Part 200, Part 4, activities allowed or unallowed and allowable costs/cost principles (A/B) include the use of funds to reduce an individual’s dependence on federally funded government assistance programs and promote job preparedness and work opportunities. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with activities allowed or unallowed and allowable costs/cost principles requirements, according to the Uniform Guidance. According to the Uniform Guidance in CFR Part 200, Part 4, eligibility (E) for individuals participating in job preparedness and work opportunities will be for those deemed to be financially needy based upon a pre-determined definition established by New York State. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with eligibility requirements, according to the Uniform Guidance. Cause/Condition: The Organization’s current policies and procedures are not operating effectively to ensure only allowable activities and allowable costs (in this case, the hours worked) were allocated and charged to the federal program. In 1 of 25 cases tested, a timecard to substantiate hours worked as part of the job preparedness and work opportunities program was not able to be located and provided. The Organization’s current policies and procedures are not operating effectively to ensure only individuals who have been deemed to be eligible are participating and being paid through the job preparedness and work opportunities program(s). In 1 of 25 cases tested, Form LDSS 4770 was not able to be located to make the determination the applicant is eligible for participation. Context: In both cases we haphazardly selected a sample of 25 employees’ participating in the workforce program during the fiscal year ending June 30, 2024. 25 Part III – Federal Award Findings and Questioned Costs (Continued) Reference: 2024-001 (Continued) Questioned Costs: No known questioned costs Effect: The Organization’s internal control over compliance related to activities allowed or unallowed or allowable costs/cost principles, as well as over eligibility, did not operate as designed. As such, immaterial noncompliance occurred. Without effective operation of the current policies and procedures, an increased likelihood for noncompliance and potential questioned costs in future years exists. Recommendation: We recommend that management review existing policies and procedures over compliance requirements related to activities allowed or unallowed, allowable costs/cost principles, as well as eligibility, and ensure internal control procedures are adequate and operating as intended. We also suggest that management develop a means for testing and monitoring the operational effectiveness of those internal controls over compliance and document any mitigating controls that are developed and implemented. Management’s Response: See response on the next page.
Finding 2024-001
Part III – Federal Award Findings and Questioned Costs Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entity: New York State Department of Labor WIOA Cluster 17.258, 17.259 and 17.278 Program Year: 2023 Criteria: According to the Uniform Guidance in CFR Part 200, Part 4, activities allowed or unallowed and allowable costs/cost principles (A/B) include the use of funds to reduce an individual’s dependence on federally funded government assistance programs and promote job preparedness and work opportunities. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with activities allowed or unallowed and allowable costs/cost principles requirements, according to the Uniform Guidance. According to the Uniform Guidance in CFR Part 200, Part 4, eligibility (E) for individuals participating in job preparedness and work opportunities will be for those deemed to be financially needy based upon a pre-determined definition established by New York State. Management is required to design and effectively implement internal controls that will provide reasonable assurance that the Organization complies with eligibility requirements, according to the Uniform Guidance. Cause/Condition: The Organization’s current policies and procedures are not operating effectively to ensure only allowable activities and allowable costs (in this case, the hours worked) were allocated and charged to the federal program. In 1 of 25 cases tested, a timecard to substantiate hours worked as part of the job preparedness and work opportunities program was not able to be located and provided. The Organization’s current policies and procedures are not operating effectively to ensure only individuals who have been deemed to be eligible are participating and being paid through the job preparedness and work opportunities program(s). In 1 of 25 cases tested, Form LDSS 4770 was not able to be located to make the determination the applicant is eligible for participation. Context: In both cases we haphazardly selected a sample of 25 employees’ participating in the workforce program during the fiscal year ending June 30, 2024. 25 Part III – Federal Award Findings and Questioned Costs (Continued) Reference: 2024-001 (Continued) Questioned Costs: No known questioned costs Effect: The Organization’s internal control over compliance related to activities allowed or unallowed or allowable costs/cost principles, as well as over eligibility, did not operate as designed. As such, immaterial noncompliance occurred. Without effective operation of the current policies and procedures, an increased likelihood for noncompliance and potential questioned costs in future years exists. Recommendation: We recommend that management review existing policies and procedures over compliance requirements related to activities allowed or unallowed, allowable costs/cost principles, as well as eligibility, and ensure internal control procedures are adequate and operating as intended. We also suggest that management develop a means for testing and monitoring the operational effectiveness of those internal controls over compliance and document any mitigating controls that are developed and implemented. Management’s Response: See response on the next page.