Audit 406443

2025-004: Activities Allowed or Unallowed and Allowable Costs/Cost Principles ALN 93.558 Passed through the City of New York, Human Resources Administration from the U.S. Department of Health and Human Services - CT1-069-20248802635 and CT1-069-20248800455 - Significant Deficiency in Internal Control Criteria: Uniform Guidance requires that charges to federal awards must be based on records that are supported by a system of internal controls that provide reasonable assurance about the accuracy, allowability and proper allocation of the charges. Documentation should be maintained for the distribution of an employee's salary and wages among specific activities or cost objective if the employee works on multiple activities. Condition: Inconsistencies in recordkeeping were noted, leading to management's inability to produce approved wage rate authorizations for 14 of the 40 employees. This was not a statistically valid sample. Cause: Management did not retain wage rate authorizations nor did they include approvals within certain budget allocation forms. Effect: Unauthorized wage rates were charged to the grant during the fiscal year. Questioned Costs: None. Recommendation: We recommend management standardize their budget allocation forms which show approved wage rates across all employees as well as retain and update records to ensure all employees have up to date forms on file. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.

2025-005: Eligibility ALN 64.033 U.S. Department of Veteran Affairs - Significant Deficiency in Internal Control Criteria: Uniform Guidance requires that eligibility determinations for participants in federal award programs be supported by records maintained under a system of internal controls that provides reasonable assurance of participant eligibility. Participants should be recertified every 90 days. Condition: Inconsistencies in recordkeeping resulted in delayed or missed recertifications for 5 of 40 participants tested. The sample was not statistically valid. Cause: Management did not complete participant recertifications within the required 90-day period due to lack of education on the importance of timely submission. Effect: Participants continued to be documented as eligible to receive benefits during the fiscal year without timely recertification. Questioned Costs: None. Recommendation: We recommend management implement procedures to ensure participant recertifications are completed within 90 days. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.

2025-006: Reporting ALN 93.558 Passed through the City of New York, Human Resources Administration from the U.S. Department of Health and Human Services - CT1-069-20248802635 and CT1-069-20248800455 - Significant Deficiency in Internal Control Criteria: Uniform Guidance requires review and approval of reports that are submitted as part of monthly financial reporting. Condition: Due to employee turnover, there was no audit evidence maintained to support the review process. Cause: Management did not retain evidence of approvals. Effect: Monthly reports were submitted to the granting agency without evidence of approval. Questioned Costs: None. Recommendation: We recommend management implement procedures to retain both email correspondence and approvals for monthly reporting submissions. Views of Responsible Officials: Management acknowledges the finding. For details on actions taken, refer to the Corrective Action Plan.