Audit 39090

FY End
2022-06-30
Total Expended
$1.13M
Findings
2
Programs
5
Year: 2022 Accepted: 2023-05-01
Auditor: Cf Joseph CPA PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
41887 2022-004 Significant Deficiency - E
618329 2022-004 Significant Deficiency - E

Contacts

Name Title Type
NK6JCGV9SNA8 Joann Buttaro Auditee
2124750222 Christopher Joseph Auditor
No contacts on file

Notes to SEFA

Title: Note 2- Summary of significant accounting policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of New York Council on Adoptable Children, Inc. (the organization) for the year ended June 30, 2022 and 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, changes in net assets, or cash flows of the organization. All financial assistance received directly from the federal agencies as well as financial assistance passed through other government agencies or nonprofit organizations is included on the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance of the cost principles contained in OMB Circular A-122 Cost principles for Non-profit Organizations, wherein types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
Title: Note 3- Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of New York Council on Adoptable Children, Inc. (the organization) for the year ended June 30, 2022 and 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, changes in net assets, or cash flows of the organization. All financial assistance received directly from the federal agencies as well as financial assistance passed through other government agencies or nonprofit organizations is included on the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no subrecipients of federal funds for the year ended June 30, 2022
Title: Note 4- Indirect cost rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of New York Council on Adoptable Children, Inc. (the organization) for the year ended June 30, 2022 and 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, changes in net assets, or cash flows of the organization. All financial assistance received directly from the federal agencies as well as financial assistance passed through other government agencies or nonprofit organizations is included on the schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Findings # 2022- 004 Annual Income verification for Temporary Assistance for Needy Family (TANF) Criteria: According to the passthrough agency (NYS Office of Children and Family Services, the organization is required to LDSS-4276 and LDSS-4725 forms for all participants on the annual and that the most current income guidelines are being used. Condition: The organization only performed the income verification during the intake process and did not perform the income verification on the annual basis. Cause: Due to COVID 19 restrictions, a verbal verification was performed by the former program director and she did document the process. In addition, she did not request supporting documents from the participants to independently verify the income. Effect: The lack of income verification can allow participant with income above income guidelines to be admitted into the program. Questioned costs: $0 Identification as a repeat finding: No Recommendation: We recommend the Organization to strengthen its policies and procedures for the income verification for the participant. The Organization should implement a quarterly income verification for all participants until the case closed.
Findings # 2022- 004 Annual Income verification for Temporary Assistance for Needy Family (TANF) Criteria: According to the passthrough agency (NYS Office of Children and Family Services, the organization is required to LDSS-4276 and LDSS-4725 forms for all participants on the annual and that the most current income guidelines are being used. Condition: The organization only performed the income verification during the intake process and did not perform the income verification on the annual basis. Cause: Due to COVID 19 restrictions, a verbal verification was performed by the former program director and she did document the process. In addition, she did not request supporting documents from the participants to independently verify the income. Effect: The lack of income verification can allow participant with income above income guidelines to be admitted into the program. Questioned costs: $0 Identification as a repeat finding: No Recommendation: We recommend the Organization to strengthen its policies and procedures for the income verification for the participant. The Organization should implement a quarterly income verification for all participants until the case closed.