Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.
Criteria: The Organization should adhere to all approved financial policies and procedures.
Condition and Context: Currently, the Organization has stated policies related to credit cards and personnel files that are not properly being followed. The credit card policy states that receipts must be obtained and approval for purchases over $500 must be obtained from the CEO. During our testing of two months, November 2023 and April 2024, we noted two charges totaling $1,813 that did not have proper supporting documentation.
Cause: The Organization has a small number of accounting personnel who, along with being tasked with many responsibilities that are typically spread among a larger accounting department, were unfamiliar with the policies.
Effect or Potential Effect: The current condition could allow for the potential for personal expenses to be charged to the Organization’s credit cards or individuals may receive inaccurate amounts for wages with no support being maintained. For transactions related to federal grants without the appropriate supporting documentation, costs may be disallowed.
Recommendation: Management should gain a thorough understanding of the approved financial policies and procedures to ensure all are being adhered to. If the policies are no longer reflective of actual operations, management should revise the policies and procedures.
Repeat finding: Yes, 2023-002.
Views of Responsible Officials: Management of the Organization concurs with the audit finding and will review the financial policies and procedures, reinforcing those that are applicable and making necessary changes as needed.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535B / 90536B / 90537B / 90538B. Compliance Requirement: Allowable Costs/Cost Principles
Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: During our testing for the year ended June 30, 2024, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts.
Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records.
Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants.
Questioned Costs: $41,865
Context: As most employees work specifically on a single program, there was one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $41,865.
Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program.
Repeat finding: Yes, 2023-003.
View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2025.