Audit 38334

FY End

2022-07-31

Total Expended

$2.91M

Findings

2

Programs

2

Organization: United Community Schools, Inc. (NY)

Year: 2022 Accepted: 2023-04-30

Auditor: Buchbinder Tunick & CO LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
42544	2022-001	Significant Deficiency	Yes	AB
618986	2022-001	Significant Deficiency	Yes	AB

ALN	Program	Spent	Major	Findings
84.424	Student Support and Academic Enrichment Program	$2.29M	Yes	1
84.215	Fund for the Improvement of Education	$621,428	-	0

Contacts

Name	Title	Type
F8QUE1NJ9GJ1	Charles Baker	Auditee
2125986862	Marc Newman	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization elects not to use the 8% reduced indirect cost rate allowed by the Department of Education for grant reporting. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the United Community Schools, Inc. under a program funded by the federal government for the year ended July 31, 2022. The information in the 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 United Community Schools, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of the United Community Schools, Inc.For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the United Community Schools, Inc. and agencies and departments of the federal government.

Finding Details

Finding 2022-001

Condition: Written procedures do not specifically address federal funds or the use thereof. Criteria: Compliance requirements for Activities Allowed or Unallowed and Allowable Costs state that the Organization must have written polices and control procedures for costs coded to federal awards. Cause: The United Community Schools, Inc. (?UCS?) and its parent organization, the United Federation of Teachers (?UFT?), negotiated a contract with the New York City Board of Education (?NYC BOE?) with the understanding that the funding was city funding. During the 2019 audit (the first year of the program), the NYC BOE disclosed to the auditors that the funding was, in fact, federal. Because of the late notification, UCS did not have sufficient time to update its written policies and procedures to include treatment of federal funds. Effect: Noncompliance with Uniform Guidance requirements may make UCS ineligible for reimbursement of current year expenditures and for future federal funding. Recommendation: Update UCS and UFT policies and procedures manuals to address the treatment of federal funds.

Finding 2022-001

Condition: Written procedures do not specifically address federal funds or the use thereof. Criteria: Compliance requirements for Activities Allowed or Unallowed and Allowable Costs state that the Organization must have written polices and control procedures for costs coded to federal awards. Cause: The United Community Schools, Inc. (?UCS?) and its parent organization, the United Federation of Teachers (?UFT?), negotiated a contract with the New York City Board of Education (?NYC BOE?) with the understanding that the funding was city funding. During the 2019 audit (the first year of the program), the NYC BOE disclosed to the auditors that the funding was, in fact, federal. Because of the late notification, UCS did not have sufficient time to update its written policies and procedures to include treatment of federal funds. Effect: Noncompliance with Uniform Guidance requirements may make UCS ineligible for reimbursement of current year expenditures and for future federal funding. Recommendation: Update UCS and UFT policies and procedures manuals to address the treatment of federal funds.