Audit 351346

Reference Number: 2024-001 Finding: Finding Type: Noncompliance with major program requirements Title and Federal Assistance Listing Number of Federal Program: 19.510 – U.S. Refugee Admissions Program - Department of State – Hebrew Immigrant Aid Society Finding Resolution Status: Ongoing Criteria: The Organization is required to submit certain financial reports within prescribed timelines to the Hebrew Immigrant Aid Society (HIAS) Condition: The Organization failed to submit certain monthly reimbursement requests to HIAS within the prescribed timeline of 15 days following the end of each month. Context: During our test work of the reporting requirements, of the 3 monthly reports selected for test work, each of these reports were submitted after the established 15-day deadline. However, each report was submitted within 50 days and accepted by the grantor upon submission. Cause: Resource constraints due to the large number of reports that have to be filed and also employee turnover and this being the first full fiscal year expending funds for the HIAS programming. Effect: Failure to submit reports timely makes the Organization out of compliance with grant requirements. Questioned Costs: None Identification as a Repeat Finding: N/A Recommendation: All requested reports should be submitted in accordance with the mutually agreed upon Reporting Schedule. Views of Responsible Official and Planned Corrective Action: Management agrees with finding. The Organization has maintained and will continue to maintain an appropriate staffing level to ensure all reporting deadlines are met.

Reference Number: 2024-002 (Significant Deficiency – Grant Revenue Accounting) Finding: Criteria: Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 958 (ASC 958) requires unconditional contribution revenue for non-profit organizations to be recognized upon receipt of the gift notification and for conditional contribution revenue to be recognized upon satisfaction of the underlying condition. Condition: Jewish Family Services was accounting for certain unconditional contribution revenue totals upon either the submission of periodic invoices or incurrence of related contribution expenditures rather than when the contribution was received. Cause: Using the submission of reimbursement requests or incurrence of expenditures as the condition necessary to be satisfied to recognize revenue on unconditional contributions rather than the receipt of the contribution. Effect: Accounting for revenue from unconditional contributions upon submission of reimbursement requests to the grantor or incurrence of expenditures rather than when the contribution was received resulted in an understatement of revenue, prior to adjustment, of $173,218. The revenue was not omitted entirely and was reclassified from the subsequent fiscal year. Recommendation: We recommend that management continue to evaluate current processes and practices. This can include building out and utilizing certain flowcharts/checklists to identify the appropriate timing of revenue recognition as well as adding indicators into their assessment which will result in additional clarity regarding donor restrictions, what conditions are present in each grant agreement and what conditions preclude revenue recognition until the condition is met. Views of Responsible Official and Planned Corrective Action: Refer to accompanying corrective action plan.

Reference Number: 2024-001 Finding: Finding Type: Noncompliance with major program requirements Title and Federal Assistance Listing Number of Federal Program: 19.510 – U.S. Refugee Admissions Program - Department of State – Hebrew Immigrant Aid Society Finding Resolution Status: Ongoing Criteria: The Organization is required to submit certain financial reports within prescribed timelines to the Hebrew Immigrant Aid Society (HIAS) Condition: The Organization failed to submit certain monthly reimbursement requests to HIAS within the prescribed timeline of 15 days following the end of each month. Context: During our test work of the reporting requirements, of the 3 monthly reports selected for test work, each of these reports were submitted after the established 15-day deadline. However, each report was submitted within 50 days and accepted by the grantor upon submission. Cause: Resource constraints due to the large number of reports that have to be filed and also employee turnover and this being the first full fiscal year expending funds for the HIAS programming. Effect: Failure to submit reports timely makes the Organization out of compliance with grant requirements. Questioned Costs: None Identification as a Repeat Finding: N/A Recommendation: All requested reports should be submitted in accordance with the mutually agreed upon Reporting Schedule. Views of Responsible Official and Planned Corrective Action: Management agrees with finding. The Organization has maintained and will continue to maintain an appropriate staffing level to ensure all reporting deadlines are met.

Reference Number: 2024-002 (Significant Deficiency – Grant Revenue Accounting) Finding: Criteria: Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 958 (ASC 958) requires unconditional contribution revenue for non-profit organizations to be recognized upon receipt of the gift notification and for conditional contribution revenue to be recognized upon satisfaction of the underlying condition. Condition: Jewish Family Services was accounting for certain unconditional contribution revenue totals upon either the submission of periodic invoices or incurrence of related contribution expenditures rather than when the contribution was received. Cause: Using the submission of reimbursement requests or incurrence of expenditures as the condition necessary to be satisfied to recognize revenue on unconditional contributions rather than the receipt of the contribution. Effect: Accounting for revenue from unconditional contributions upon submission of reimbursement requests to the grantor or incurrence of expenditures rather than when the contribution was received resulted in an understatement of revenue, prior to adjustment, of $173,218. The revenue was not omitted entirely and was reclassified from the subsequent fiscal year. Recommendation: We recommend that management continue to evaluate current processes and practices. This can include building out and utilizing certain flowcharts/checklists to identify the appropriate timing of revenue recognition as well as adding indicators into their assessment which will result in additional clarity regarding donor restrictions, what conditions are present in each grant agreement and what conditions preclude revenue recognition until the condition is met. Views of Responsible Official and Planned Corrective Action: Refer to accompanying corrective action plan.