Audit 402429

2025-001: SEFA Reporting Significant Deficiency - Ryan White HIV/AIDS Program Parts A and B Federal Agency: Department of Health and Human Services Pass-through Entity: New York City Department of Health and Mental Hygiene Program: Ending the HIV Epidemic: A Plan for America — Ryan White HIV/AIDS Program Parts A and B Assistance Listing #: 93.686 Grant Period: 3/1/21-2/28/26 Criteria OMB Uniform Guidance 2 CFR 200.510(b)(3) requires that the auditee provide the Federal awards expended for each individual Federal program on the Schedule of Expenditures of Federal Awards (“SEFA”). In accordance with 2 CFR 200.502, the determination of when a Federal award is expended, and thereby reported on the SEFA, is generally based on when the activity related to the Federal award occurs. Condition The Ryan White HIV/AIDS Program Parts A and B grant is a cost reimbursement based grant that reimburses award recipients for expenditures incurred on this program, which seeks to address health inequities faced by members of New York City’s (NYC) priority populations with HIV and was first granted in March 2021. Sunset Park has not included the expenditures incurred under this grant on the SEFA until FY2025 when it was first identified. As a result, the expenditures reported by Sunset Park on its SEFA from 2021-2024 were understated by the entire amount of the grant’s expenditures incurred in each respective year. This has been corrected by management in the 2025 SEFA included in this report. There was no impact to our prior year audit scoping given the expenditures in each respective year would not have changed the prior determination of major programs. The cumulative amount of expenditures under this award was included on the 2025 SEFA and included as a major program. Cause When this grant was initially awarded in early 2021, the Assistance Listing Number (ALN) was not identified at the time of grant setup, therefore, the award wasn’t identified as a federal award. During the annual preparation of the SEFA in the subsequent years, the award was omitted from the SEFA due to the fact that it was not identified as a federal grant within the grant listings. Effect Failure to properly identify this grant as a federal award resulted in the underreporting of federal expenditures incurred from 2021 through 2024 by $1,267,956. This was corrected in the 2025 SEFA included in this report, as such the entire cumulative expenditure amount previously underreported was reported in the current year SEFA. The major program determination and audit scoping for the 2025 audit resulted in this award being selected for testing as a major program. If the expenditures had been properly reported in each respective year’s SEFA, the major program determination and audit scoping would not have been impacted. This is not a repeat finding. Questioned Costs None Recommendation We recommend Sunset Park enhance their controls around identification of federal grants at the time of grant setup as well as enhanced completeness controls as part of the preparation and review of the SEFA. Management’s Views and Corrective Action Plan Refer to Management’s View’s and Corrective Action Plan at the end of the report.

2025-002: Reporting - Federal Funding Accountability and Transparency Act (FFATA) Federal Agency: Department of Health and Human Services Program: Community Health Centers, Section 330, Federally Qualified Health Center Assistance Listing #: 93.224 Criteria As required by the Federal Funding Accountability and Transparency Act of 2006 (Public Law 109–282), as amended by section 6202 of Public Law 110–252, recipients must report information for each subaward action that obligates $30,000 or more in Federal funds to a subawardee, as outlined in Appendix A to 2 CFR Part 170 to the FFATA Subaward Reporting System (FSRS), by the end of the month following the month in which any subaward action occurs. Condition Sunset Park’s subaward agreements under ALN # 93.224 are contingent upon the federal funding made available to Sunset Park, and therefore, funds are obligated to the subawardees only after which the approved Notice of Award has been received from the granting agency. Sunset Park did not report information as required by the FFATA for subaward actions. Each subaward (four total) under this ALN was greater than $30,000 and therefore each is subject to this requirement. Cause Sunset Park's process for identifying FFATA reporting requirements only included new subaward obligations through new subaward agreements. Existing subaward agreements with subsequent obligating subaward actions were not appropriately reported to FSRS. Effect The FFATA reporting requirements were not met in fiscal year 2025 for the four subawards under this ALN (approximately $1,023,249 in subrecipient awards for this cluster in fiscal year 2025), and applicable subaward obligations, modifications and key data elements required to be reported for each of Sunset Park’s subawards were not reported in the FSRS in a timely manner. This is not a repeat finding. Questioned Costs None Recommendation Sunset Park should complete the required FFATA reporting for fiscal year 2025. Additionally, Sunset Park should update their process to include all subaward actions that are subject to the reporting requirements under FFATA to ensure that the required subaward information and key data elements are reported to FSRS in a timely manner. Management’s Views and Corrective Action Plan Refer to Management’s View’s and Corrective Action Plan at the end of the report.