Audit 40614

FY End

2022-06-30

Total Expended

$1.08M

Findings

2

Programs

2

Organization: Young Men's Christian Association of Trenton Nj/dba Capital Area YMCA (NJ)

Year: 2022 Accepted: 2023-06-04

Auditor: Marcum LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
45929	2022-002	Significant Deficiency	-	L
622371	2022-002	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
10.559	Summer Food Service Program for Children	$711,912	Yes	1
10.558	Child and Adult Care Food Program	$370,796	-	0

Contacts

Name	Title	Type
DD1KWENEF4G3	Louise McCants	Auditee
6099128710	Marie Decicco	Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1)The accompanying schedule of expenditures of federal awards is presented using 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.(2)Federal assistance expenditures are reported on the statement of activities and changes in net assets as grants and contributions and included in the total agency expenditures. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal financial assistance.(3)Capital Area YMCA did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) presents the activities in the federal financial assistance programs of Capital Area YMCA for the year ended June 30, 2022. All governmental financial assistance received directly from federal agencies as well as federal financial governmental assistance passed through other state and local agencies is included on the Schedule. All of the awards are used to fund the nutritious meals and snacks program for eligible children in the pre-school and after-school programs, and summer recreations programs. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of the operations of Capital Area YMCA, it is not intended to and does not present the financial position, changes in net assets or cash flows of Capital Area YMCA.

Title: U.S. DEPARTMENT OF AGRICULTURE Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1)The accompanying schedule of expenditures of federal awards is presented using 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.(2)Federal assistance expenditures are reported on the statement of activities and changes in net assets as grants and contributions and included in the total agency expenditures. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal financial assistance.(3)Capital Area YMCA did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Capital Area YMCA entered into two contracts with the State of New Jersey, Department of Agriculture, Division of Food and Nutrition for certain meal service programs that provide nutritious meals and snacks services to eligible children. The contracts are federally funded and the total amount recognized within the contract period from July 1, 2021 to June 30, 2022 was $1,082,708.

Finding Details

Finding 2022-002

Finding 2022-002: Late Submission of Reporting Package and Data Collection Form Federal Program: Summer Food Service Program for Children (SFSP) Assistance listing number and title: 10.559 - Summer Food Service Program for Children Finding Type: Noncompliance; significant deficiency in internal controls over compliance. Criteria: The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. Condition and Context: The Federal reporting deadline for the Single Audit Reporting Package was March 31, 2023; however, Capital Area YMCA did not issue its Single Audit Reporting Package on time. Cause: Capital Area YMCA experienced issues with turnover within its accounting leadership, which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the 2022 audit. Effect or Potential Effect: The late submission of the reporting package affects all Federal programs administered by Capital Area YMCA. This finding is a significant deficiency in internal control over compliance and noncompliance with the Uniform Guidance. Recommendation: We recommend that Capital Area YMCA improve its financial reporting processes so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. Views of Responsible Officials and Planned Corrective Action: See the attached response and corrective action plan.

Finding 2022-002

Finding 2022-002: Late Submission of Reporting Package and Data Collection Form Federal Program: Summer Food Service Program for Children (SFSP) Assistance listing number and title: 10.559 - Summer Food Service Program for Children Finding Type: Noncompliance; significant deficiency in internal controls over compliance. Criteria: The Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from auditors or nine months after the end of the audit period, unless longer period of time was agreed to in advance by the cognizant or oversight agency for audit. The Federal Audit Clearinghouse considers the submission requirement complete when it has received the electronic submission of both the data collection form and the reporting package. Condition and Context: The Federal reporting deadline for the Single Audit Reporting Package was March 31, 2023; however, Capital Area YMCA did not issue its Single Audit Reporting Package on time. Cause: Capital Area YMCA experienced issues with turnover within its accounting leadership, which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the 2022 audit. Effect or Potential Effect: The late submission of the reporting package affects all Federal programs administered by Capital Area YMCA. This finding is a significant deficiency in internal control over compliance and noncompliance with the Uniform Guidance. Recommendation: We recommend that Capital Area YMCA improve its financial reporting processes so that the Single Audit Reporting Package can be submitted to the Federal Audit Clearinghouse no later than the earlier of 30 days after the reports are received from auditors or nine months after year-end. Views of Responsible Officials and Planned Corrective Action: See the attached response and corrective action plan.