FAC Explorer

Audit 399110

FY End
2023-06-30
Total Expended
$1.09M
Findings
1
Programs
4
Organization: The Crenulated Company Ltd. (NY)
Year: 2023 Accepted: 2026-04-20
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208207 2023-003 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
17.274 YOUTHBUILD $457,029 Yes 1
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $359,185 Yes 0
93.569 COMMUNITY SERVICES BLOCK GRANT $174,473 Yes 0
14.537 EVICTION PROTECTION GRANT PROGRAM $100,534 Yes 0

Contacts

Name Title Type
KKP2JZTK4KM8 Johanna C. Kletter Auditee
2122450637 Mike Bisson Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the Company under programs of the federal government for the year ended June 30, 2023. 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 the operations of the Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.
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. Passthrough entity identifying numbers are presented where available.
The Company has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Schedule, previously issued on March 28, 2024 has been restated because the Schedule improperly included $650,968 of expenditures. Federal expenditures of $350,968 for ALN # 93.575 were removed because the Company was determined to be the beneficiary of these funds. Federal expenditures of $300,000 for ALN # 84.425D were removed because the Company was determined to be a contractor. The Schedule has been corrected to remove those amounts.

Finding Details

Finding 2023-003
Name of Federal Agency: Department of Labor Federal Program Name and Assistance Listing Number: YouthBuild Program -17.274 Federal Award Identification Number and Year: YB-38231-22-60-A-36 Criteria In accordance with the Funding Opportunity Announcement, the Company is required to provide and expend cash, in-kind or third-party resources equivalent to exactly 25 percent of the grant award amount as "matching" funds. Match can be in the form of cash, in-kind contributions and third-party contributions and must meet the requirement found at 2 CFR 200.306, 2 CFR 200.403, 2 CFR 200.434, and 2 CFR 2900.8. 2 CFR 2900.8 requires that match is recognized at the time in which the funds are expended. The matching funds are required to be reported in the quarterly financial reports submitted by the Company. The quarterly performance reports must be submitted within 45 days following the end of each Program Year quarter. Reporting quarter end dates are March 31, June 30, September 30, and December 31. Condition The Company did not record in-kind matching funds contributions and related expense of $358,500 for the year ending June 30, 2023. In addition, the Company did not report their in-kind matching funds contributions or the related expenses on the quarterly financial report to the Department of Labor. For one of the two quarterly performance reports tested, one report was submitted after the 45 day deadline. Cause Internal controls over reporting of in-kind contributions and in-kind expenses were not operating effectively. Effect This resulted in an understatement of revenue and expense of $358,500 each for the year ending June 30, 2023, which resulted in a restatement of the 2023 financial statements. In addition, the Company was not in compliance with the reporting requirements of the YouthBuild program. Questioned Costs N/A. Context A sample of 2 financial reports out of 2 financial reports required during the year ended June 30, 2023 did not report the in-kind contribution of matching funds. Additionally, a sample of one financial report out of two financial reports was not submitted timely. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that management reviews its internal controls over reporting of the ETA-9130 Financial Report to ensure complete and accurate reports. Additionally, we recommend that management strengthens its policies and procedures to ensure proper recognition and recording of revenue from inkind contributions and related expenses. Views of Responsible Officials The Crenulated will request a quarterly in-kind contribution report from DOE and will ensure the in-kind contributions are recorded in the financial statements. The Crenulated plans to hire an in-house Controller with expertise in accounting for grants and review its existing contract with the current thirdparty accounting provider.