Audit 366001

FY End
2024-12-31
Total Expended
$2.01M
Findings
2
Programs
2
Year: 2024 Accepted: 2025-09-10
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
576096 2024-001 Material Weakness - P
1152538 2024-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $2.00M Yes 1
10.558 Child and Adult Care Food Program $9,937 - 0

Contacts

Name Title Type
YLE6KLMFFND9 Santina Bonacci Auditee
3152357114 Michelle Mundy Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with GAAP. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: LHCNY has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) has been prepared in accordance with accounting principles generally accepted in the United States of America. Amounts included in the Schedule are actual expenditures for the year ended December 31, 2024. The accompanying Schedule presented the activity of all federal award programs of The Lutheran Home of Central New York, Inc. (LHCNY). 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 LHCNY’s operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of LHCNY.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with GAAP. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: LHCNY has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. LHCNY does not have any subrecipients of federal awards.
Title: Direct Loan Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting in accordance with GAAP. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: LHCNY has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. LHCNY obtained from U.S. Department of Agriculture a direct loan. The outstanding balance of the direct loan at December 31, 2024 was $1,950,174.

Finding Details

Condition – A material journal entry was identified after the issuance of the financial statements. Cause – Management clarified with the Board of Directors of the Foundation the intent of the support provided during the year to KLRHC was contributions payable to LHCNY. As such, management determined an adjustment was necessary to reduce the contributions receivable from the Foundation for the amounts transferred to KLRHC. Criteria – Management should ensure related party transactions are recognized in accordance with generally accepted accounting principles. Effect – The material entry was recognized. Recommendation – We recommend management reissue the financial statements to properly reflect the transaction. Further, we recommend that management gain an understanding of all related party transactions through review of Board actions or other support to ensure that all transactions are recognized appropriately. Management’s Response – Management agrees with this comment and the adjustment was made and financial statements were reissued.
Condition – A material journal entry was identified after the issuance of the financial statements. Cause – Management clarified with the Board of Directors of the Foundation the intent of the support provided during the year to KLRHC was contributions payable to LHCNY. As such, management determined an adjustment was necessary to reduce the contributions receivable from the Foundation for the amounts transferred to KLRHC. Criteria – Management should ensure related party transactions are recognized in accordance with generally accepted accounting principles. Effect – The material entry was recognized. Recommendation – We recommend management reissue the financial statements to properly reflect the transaction. Further, we recommend that management gain an understanding of all related party transactions through review of Board actions or other support to ensure that all transactions are recognized appropriately. Management’s Response – Management agrees with this comment and the adjustment was made and financial statements were reissued.