FAC Explorer

Audit 42019

FY End
2022-08-31
Total Expended
$5.99M
Findings
2
Programs
8
Organization: Easter Seals New Jersey, Inc. (NJ)
Year: 2022 Accepted: 2023-05-30
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48641 2022-002 Significant Deficiency - L
625083 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
17.235 Senior Community Service Employment Program $2.51M - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $943,702 - 0
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $804,698 Yes 0
93.958 Block Grants for Community Mental Health Services $790,951 Yes 1
14.181 Supportive Housing for Persons with Disabilities $674,700 - 0
14.267 Continuum of Care Program $223,926 - 0
14.195 Section 8 Housing Assistance Payments Program $30,217 - 0
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $14,835 - 0

Contacts

Name Title Type
RE86JBBNDVV5 Aleisha Hart Auditee
7329558374 Kim Brandley Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financialassistance (the "Schedules") include the federal and state award activity of Easter Seals NewJersey, Inc. and Related Entities ("Easter Seals") under programs of the federal and stategovernment for the year ended August 31, 2022. The information in these Schedules is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (the "Uniform Guidance") and New Jersey (NJ) CircularLetter 15-08-OMB Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid.Acquisitions of fixed assets are expensed for award purposes, whereas for financial statementpurposes, they have been capitalized. Therefore, some amounts presented in these Schedules maydiffer from amounts presented in, or used in the preparation of, the basic consolidated financialstatements. Because these Schedules present only a selected portion of the operations of EasterSeals, they are not intended to and do not present the financial position, changes in net assets, orcash flows of Easter Seals. Expenditures reported on these Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the New Jersey (NJ) CircularLetter 15-08-OMB Single Audit Policy for Recipients of Federal Grants, State Grants and State Aidor the cost principles contained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: Easter Seals has elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance for the U.S. Department of Health and Human Services Block Grant for CommunityMental Health Services Substance Abuse and Mental Health Services Administration program.Easter Seals has not elected to use the 10% de minimis indirect cost rate as allowed under theUniform Guidance for the its remaining contracts. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 674700.
Title: Note 5 - COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rur Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financialassistance (the "Schedules") include the federal and state award activity of Easter Seals NewJersey, Inc. and Related Entities ("Easter Seals") under programs of the federal and stategovernment for the year ended August 31, 2022. The information in these Schedules is presented in accordance with the requirements of Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (the "Uniform Guidance") and New Jersey (NJ) CircularLetter 15-08-OMB Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid.Acquisitions of fixed assets are expensed for award purposes, whereas for financial statementpurposes, they have been capitalized. Therefore, some amounts presented in these Schedules maydiffer from amounts presented in, or used in the preparation of, the basic consolidated financialstatements. Because these Schedules present only a selected portion of the operations of EasterSeals, they are not intended to and do not present the financial position, changes in net assets, orcash flows of Easter Seals. Expenditures reported on these Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the New Jersey (NJ) CircularLetter 15-08-OMB Single Audit Policy for Recipients of Federal Grants, State Grants and State Aidor the cost principles contained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: Both Rate Explanation: Easter Seals has elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance for the U.S. Department of Health and Human Services Block Grant for CommunityMental Health Services Substance Abuse and Mental Health Services Administration program.Easter Seals has not elected to use the 10% de minimis indirect cost rate as allowed under theUniform Guidance for the its remaining contracts. For the HHS awards related to the Provider Relief Fund ("PRF"), HHS has indicated the amounts on the schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to "Payment Received Periods" (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of report requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability).The schedule includes $27,285 received from HHS between July 1, 2020 through December 31, 2020. In accordance with the guidance from HHS, these amounts are presented as Period 2. Such amounts were recognized in operating revenue in the consolidated financial statements in the year ended August 31, 2021. The schedule includes $777,413 received from HHS between January 1, 2021 through June 30, 2021. In accordance with the guidance from HHS, these amounts are presented as Period 3. Such amounts were recognized in operating revenue in the consolidated financial statements in the year ended August 31, 2021.

Finding Details

Finding 2022-002
Finding 2022-002: Federal Agency: Department of Health and Human Services Federal Program Title: Block Grants for Community Mental Health Services Substance Abuse and Mental Health Services Administration Federal Assistance Listing Number: 93.958 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: As a federal prime awardee that passed-through funding to a related party, Easter Seals New Jersey, Inc. is required to submit a filing evidencing such subaward in accordance with the Federal Funding Accountability and Transparency Act ("FFATA") as defined under 2 CFR Chapter 1, Part 170. Condition and Context: Easter Seals New Jersey, Inc. was the prime awardee of ALN 93.958 during the year ended August 31, 2022. Easter Seals New Jersey, Inc. elected to passthrough the funding received from ALN 93.958 to CenterPath Wellness, Inc., a related entity included in the August 31, 2022 consolidated financial statements. As the subaward exceeded $30,000, Easter Seals New Jersey, Inc. was required to file a FFATA subaward report evidencing the amounts awarded to CenterPath Wellness, Inc. During our testing of the reporting compliance requirement, it was noted that Easter Seals New Jersey, Inc. did not report the subaward information. Cause: Due to the related party nature of the subaward, Easter Seals New Jersey, Inc. did not believe the FFATA subaward reporting requirement was applicable to the transaction. As such, Easter Seals New Jersey, Inc. did not report the subaward information. Subsequent filing of the FFATA subaward reporting has yet to be completed due to system errors that Easter Seals New Jersey, Inc. is working with the grantor to rectify. Effect: Due to Easter Seals New Jersey, Inc. not completing a FFATA subaward report, Easter Seals New Jersey, Inc. did not adhere to requirements defined under 2 CFR Chapter 1, Part 170. Questioned Costs: None Identification as a Repeat Finding: No Auditor's Recommendation: We recommend Easter Seals New Jersey, Inc. establish processes to ensure that passthrough funding arrangements are identified and proper subaward reporting requirements are completed in a timely manner in accordance with 2 CFR Chapter 1, Part 170. Easter Seals should also provide appropriate training to staff who are assigned to monitor and review reporting compliance. Views of Responsible Officials: Easter Seals agrees with the auditor?s findings. We are establishing new procedures that will strengthen communication between Finance and Program staff and have adopted controls with regards to obtaining, providing, and reporting subaward reporting requirements in accordance with 2 CFR Chapter 1, Part 170.
Finding 2022-002
Finding 2022-002: Federal Agency: Department of Health and Human Services Federal Program Title: Block Grants for Community Mental Health Services Substance Abuse and Mental Health Services Administration Federal Assistance Listing Number: 93.958 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: As a federal prime awardee that passed-through funding to a related party, Easter Seals New Jersey, Inc. is required to submit a filing evidencing such subaward in accordance with the Federal Funding Accountability and Transparency Act ("FFATA") as defined under 2 CFR Chapter 1, Part 170. Condition and Context: Easter Seals New Jersey, Inc. was the prime awardee of ALN 93.958 during the year ended August 31, 2022. Easter Seals New Jersey, Inc. elected to passthrough the funding received from ALN 93.958 to CenterPath Wellness, Inc., a related entity included in the August 31, 2022 consolidated financial statements. As the subaward exceeded $30,000, Easter Seals New Jersey, Inc. was required to file a FFATA subaward report evidencing the amounts awarded to CenterPath Wellness, Inc. During our testing of the reporting compliance requirement, it was noted that Easter Seals New Jersey, Inc. did not report the subaward information. Cause: Due to the related party nature of the subaward, Easter Seals New Jersey, Inc. did not believe the FFATA subaward reporting requirement was applicable to the transaction. As such, Easter Seals New Jersey, Inc. did not report the subaward information. Subsequent filing of the FFATA subaward reporting has yet to be completed due to system errors that Easter Seals New Jersey, Inc. is working with the grantor to rectify. Effect: Due to Easter Seals New Jersey, Inc. not completing a FFATA subaward report, Easter Seals New Jersey, Inc. did not adhere to requirements defined under 2 CFR Chapter 1, Part 170. Questioned Costs: None Identification as a Repeat Finding: No Auditor's Recommendation: We recommend Easter Seals New Jersey, Inc. establish processes to ensure that passthrough funding arrangements are identified and proper subaward reporting requirements are completed in a timely manner in accordance with 2 CFR Chapter 1, Part 170. Easter Seals should also provide appropriate training to staff who are assigned to monitor and review reporting compliance. Views of Responsible Officials: Easter Seals agrees with the auditor?s findings. We are establishing new procedures that will strengthen communication between Finance and Program staff and have adopted controls with regards to obtaining, providing, and reporting subaward reporting requirements in accordance with 2 CFR Chapter 1, Part 170.