Audit 383646

Reporting Information on the Federal Program U.S. Department of Health and Human Services Passed through the State of New York Division of Housing and Community Renewal – Federal Assistance Listing Number 93.568, Low-Income Home Energy Assistance Criteria Per the grant contract agreement with State of New York Division of Housing and Community Renewal, Cumulative Financial Report (CFR) and claims for payment with all back-up documentation are due the 20th of each month. Condition We noted that for the year ended June 30, 2023, monthly reports for Weatherization Assistance Program (WAP) ending 12/31/22, 01/31/23 and 04/30/23 which are due on the 20th day of the following month were submitted on 01/24/23, 02/21/23 and 05/22/23, respectively and the final CFR dated 06/30/23 was submitted on 09/25/23. While for American Rescue Plan Act (ARPA), monthly report ending 01/31/23 which is due on the 20th day of the following month was submitted on 02/21/23. Cause The Weatherization Assistance Program had undergone significant instability since fiscal year 2022, as evidenced by multiple turnover of personnel, affecting the over-all efficiency in the performance of these contracts. Effect Restoration is non-compliant with the reporting requirements applicable to the Low-Income Home Energy Assistance Questioned Costs None. Context Five of the Fifteen monthly reports were not submitted by Restoration on time. Identification as a Repeat Finding Repeat finding. Recommendation We recommend that Restoration emphasize the importance of complying with reporting requirements of its funding agency. Views of Responsible Official The instability at the Weatherization Assistance Program was a direct result of the personnel situation. Management endeavored diligently to rectify such situation. After multiple attempts until towards the end of fiscal year 2025, it was then that the program was able to refocus and regain footing.

Single Audit Reporting for June 30, 2023 Information on the Federal Program U.S. Department of Health and Human Services Passed through the State of New York Division of Housing and Community Renewal – Federal Assistance Listing Number 93.568, Low-Income Home Energy Assistance Criteria Pursuant to the Uniform Guidance, organizations expending federal assistance in excess of $750,000 in a fiscal year are required to submit the data collection form and reporting package by the earlier of either 30 days after receipt of the auditor's report, or nine months after the end of fiscal year end date. Condition The Restoration did not follow the process in place for ensuring that the Single Audit reporting requirements were satisfied on a timely manner. The audit of the Restoration’s basic financial statements was not completed prior to the Single Audit reporting deadlines. Cause Delay in completing the audit process due to delay in the Restoration’s readiness and other accounting matters such as the adoption of new lease standards that required discussion with management. Effect Restoration is non-compliant with the reporting requirements applicable to the Low-Income Home Energy Assistance Questioned Costs None. Context Single Audit reporting requirement was not submitted by Restoration on time. Identification as a Repeat Finding Not a repeat finding from the prior year. Recommendation We recommend that Restoration takes the necessary steps to assure compliance with this requirement in the future. Views of Responsible Official Restoration has gone through several administrative transitions within the last three years. These transitions have put great hardship on Restoration as a whole. Restoration understands the importance of timely audit and has a plant to put the audit process first and foremost. Restoration’s team is working on catching up with the audit and plan to maintain current audit status thereafter (once caught up). Additionally, Restoration’s delayed readiness especially with significant accounting matters, mainly the adoption of new lease standards, has impacted the ability to complete the audit sooner than expected. Implementing ASC 842 is challenging because of the herculean effort required for data collection and management. This is especially true for an entity that has many equipment leases and more so for an entity that deals in real estate leases as well as for an agency with multiple entities that must be consolidated in order to complete the audit.