Audit 363928

FY End

2024-12-31

Total Expended

$929,959

Findings

2

Programs

4

Organization: The Addiction Center of Broome County, Inc. (NY)

Year: 2024 Accepted: 2025-08-08

Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
573121	2024-001	Material Weakness	-	AB
1149563	2024-001	Material Weakness	-	AB

ALN	Program	Spent	Major	Findings
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$509,459	Yes	1
95.007	Research and Data Analysis	$173,329	-	0
14.231	Emergency Solutions Grant Program	$16,250	-	0
93.788	Opioid Str	$2,876	-	0

Contacts

Name	Title	Type
KN6KXMNN99D5	Lottie Albrecht	Auditee
6079400102	Keeley Ann 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 The Addiction Center of Broome County, 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 The Addiction Center of Broome County, 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 The Addiction Center of Broome County, 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 The Addiction Center of Broome County, 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 The Addiction Center of Broome County, 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

Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entities: NYS Office of Addiction Services and Supports Block Grant for Prevention and Treatment of Substance Abuse 93.959 Program Year: April 1, 2023 – March 31, 2024 and April 1, 2024 – June 30, 2025 Criteria: In accordance with the Code of Federal Regulations Part 200.430(g) - Standards for Documentation of Personnel Expenses, charges to Federal awards for salaries and wages must be based upon records that accurately reflect the work performed including support for the distribution of the employees’ salary or wages among specific activities or cost objectives if the employee works on more than one Federal award, a Federal award and non-Federal award, an indirect cost activity and a direct cost activity or a combination thereof. Budget estimates alone do not qualify as support for charges to Federal awards. The internal controls environment should dictate the necessity for documenting, retaining and monitoring the time and effort by program and/or service of each employee. This is critical to ensure payroll charges are accurate and reasonable when allocated across different funding sources. Cause/Condition: Management charges payroll to different funding sources based on budgeted figures and does not consider actual time and effort through periodic tracking and monitoring. The internal control process was not effective in accounting recording payroll to appropriate grants. Questioned Costs: Indeterminable due to systemic deficiency and lack of comprehensive documentation to support the allocation of salary or wages. Effect: The Organization was not in compliance with the Code of Federal Regulations Part 200.420(g) – Standards for Documentation of Personnel Costs. Without internal controls that require precise records of time and effort of employees, discrepancies can arise that jeopardize funding compliance and audit accuracy, ultimately affecting budget allocations and financial planning, as well as increasing risk for the occurrence of non-compliance with Federal regulations. Context: All payroll salaries, wages and related payroll costs associated with employees who perform or work within more than one program and/or service, or participate in indirect cost activities is potentially appliable. 24 Recommendation: We recommend that management design an internal control process for employees to periodically record time and effort spent by program, service and intended funding source (including Federal awards). Such records should be accumulated and used in determining the allocation of payroll for those employees. Documentation should be retained and periodically monitored for reasonableness and accuracy. Management’s Response: Management will implement periodic time studies throughout contract durations to support accurate allocation of personnel costs. Staff will be reminded of relevant compliance requirements, and internal processes will be adjusted as needed. We will continue to monitor this area and document efforts to ensure ongoing alignment with applicable regulations.

Finding 2024-001

Reference: 2024-001 U.S. Department of Health and Human Services Pass-through entities: NYS Office of Addiction Services and Supports Block Grant for Prevention and Treatment of Substance Abuse 93.959 Program Year: April 1, 2023 – March 31, 2024 and April 1, 2024 – June 30, 2025 Criteria: In accordance with the Code of Federal Regulations Part 200.430(g) - Standards for Documentation of Personnel Expenses, charges to Federal awards for salaries and wages must be based upon records that accurately reflect the work performed including support for the distribution of the employees’ salary or wages among specific activities or cost objectives if the employee works on more than one Federal award, a Federal award and non-Federal award, an indirect cost activity and a direct cost activity or a combination thereof. Budget estimates alone do not qualify as support for charges to Federal awards. The internal controls environment should dictate the necessity for documenting, retaining and monitoring the time and effort by program and/or service of each employee. This is critical to ensure payroll charges are accurate and reasonable when allocated across different funding sources. Cause/Condition: Management charges payroll to different funding sources based on budgeted figures and does not consider actual time and effort through periodic tracking and monitoring. The internal control process was not effective in accounting recording payroll to appropriate grants. Questioned Costs: Indeterminable due to systemic deficiency and lack of comprehensive documentation to support the allocation of salary or wages. Effect: The Organization was not in compliance with the Code of Federal Regulations Part 200.420(g) – Standards for Documentation of Personnel Costs. Without internal controls that require precise records of time and effort of employees, discrepancies can arise that jeopardize funding compliance and audit accuracy, ultimately affecting budget allocations and financial planning, as well as increasing risk for the occurrence of non-compliance with Federal regulations. Context: All payroll salaries, wages and related payroll costs associated with employees who perform or work within more than one program and/or service, or participate in indirect cost activities is potentially appliable. 24 Recommendation: We recommend that management design an internal control process for employees to periodically record time and effort spent by program, service and intended funding source (including Federal awards). Such records should be accumulated and used in determining the allocation of payroll for those employees. Documentation should be retained and periodically monitored for reasonableness and accuracy. Management’s Response: Management will implement periodic time studies throughout contract durations to support accurate allocation of personnel costs. Staff will be reminded of relevant compliance requirements, and internal processes will be adjusted as needed. We will continue to monitor this area and document efforts to ensure ongoing alignment with applicable regulations.