Audit 354774

FY End
2023-12-31
Total Expended
$1.75M
Findings
20
Programs
5
Year: 2023 Accepted: 2025-04-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
556041 2023-001 Significant Deficiency - L
556042 2023-003 Significant Deficiency Yes P
556043 2023-001 Significant Deficiency - L
556044 2023-003 Significant Deficiency Yes P
556045 2023-001 Significant Deficiency - L
556046 2023-003 Significant Deficiency Yes P
556047 2023-001 Significant Deficiency - L
556048 2023-003 Significant Deficiency Yes P
556049 2023-001 Significant Deficiency - L
556050 2023-003 Significant Deficiency Yes P
1132483 2023-001 Significant Deficiency - L
1132484 2023-003 Significant Deficiency Yes P
1132485 2023-001 Significant Deficiency - L
1132486 2023-003 Significant Deficiency Yes P
1132487 2023-001 Significant Deficiency - L
1132488 2023-003 Significant Deficiency Yes P
1132489 2023-001 Significant Deficiency - L
1132490 2023-003 Significant Deficiency Yes P
1132491 2023-001 Significant Deficiency - L
1132492 2023-003 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.267 Continuum of Care Program $1.09M Yes 2
14.231 Emergency Solutions Grant Program $106,432 Yes 2
10.558 Child and Adult Care Food Program $22,525 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $16,635 - 0
97.024 Emergency Food and Shelter National Board Program $16,326 - 0

Contacts

Name Title Type
LBNFBTMDVL67 Amy Lafountain Auditee
5182729370 Thomas J. O'Donnell, CPA Auditor
No contacts on file

Notes to SEFA

Title: NOTE D--NONCASH ASSISTANCE Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Joseph's House & Shelter, Inc. (the Organization) a not-for-profit corporation, under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other governments and not-for-profit entities are included on the Schedule. 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). Because the 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. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in either the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as government fees and contracts revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no federal awards expended in the form of noncash assistance by the Organization during the year ended December 31, 2023, and accordingly, no amounts were reported on the Schedule.
Title: NOTE E--SUBRECIPIENTS Accounting Policies: NOTE A--BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Joseph's House & Shelter, Inc. (the Organization) a not-for-profit corporation, under programs of the federal government for the year ended December 31, 2023. Federal awards received directly from the federal agencies as well as federal awards passed through other governments and not-for-profit entities are included on the Schedule. 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). Because the 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. NOTE B--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in either the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identification numbers are presented where available. Relationship to Basic Financial Statements Federal award revenues are reported in the basic financial statements as government fees and contracts revenue. The basic financial statements are presented using the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization provided no federal awards to subrecipients during the year ended December 31, 2023, and accordingly, no amounts were reported on the Schedule.

Finding Details

Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.
Finding 2023-001--Timely Submission of Single Audit--Significant Deficiency Federal Agency: U.S. Department of Housing and Urban Development Passed Through: New York State Office of Temporary and Disability Assistance City of Troy, New York City of Albany Community Development Agency CARES of NY, Inc. Unity House of Troy, Inc. Federal Program: ALN 14.231 – Emergency Solutions Grant Program ALN 14.267 – Continuum of Care Grant Period: Year ended December 31, 2023 Condition: The single audit reports were not submitted to the federal audit clearinghouse prior to the September 30, 2024 deadline. Criteria: Single audits are required to be submitted to the Federal Audit Clearinghouse at the earlier of 30 days after issuance of the financial statements or nine months after the fiscal year has ended. September 30, 2024 would have been 9 months after the Organization’s fiscal year end of December 31, 2023. Cause: Significant turnover in key positions in early 2023 disrupted the financial management team responsible for maintaining the books and records for the December 31, 2023 fiscal year. This instability led to substantial delays in the monthly close process, ultimately preventing Josephs House from filing the single audit report on time. Effect: The Organization was not in compliance with a significant clause of its federal grants and the audit requirements of Uniform Guidance. Recommendation: The Organization should put in place policies and procedures to ensure that the books are closed and provided to the auditor in a timely manner that provides sufficient time for an audit to be completed prior to the single audit due date.
Finding 2023-003--General Oversight--Significant Deficiency Condition: During the year ended December 31, 2023, the Organization fell behind on vouchering and billing of grants as well as a delay in financial reporting due to lack of oversight of the contracted accounting services. This was identified as a Material Weakness in the December 31, 2022 audit. Criteria: A system of internal controls should be in place, including policies and procedures to ensure that maintenance of detail documentation, provide reasonable assurance transactions are recorded properly, and misstatements are prevented or detected in a timely manner. Management should provide oversight to ensure that the system of controls is being followed. Cause: The Organization relied too heavily on its contracted accounting service and did not provide adequate management oversight in the financial reporting process. Effect: The condition could allow improper recording of program expenses and revenues. For transactions related to federal grants, without proper documentation, costs may be disallowed. Recommendation: We recommend that the Organization create policies and procedures to ensure proper oversight of the financial reporting function. In addition, we would recommend the Organization to consider the costs and benefits of restructuring the finance department. This could include allocating additional resources to hire additional employees, reallocation of responsibilities within the organization and less reliance on the contracted accounting services.