FAC Explorer

Audit 42118

FY End
2022-06-30
Total Expended
$8.22M
Findings
2
Programs
10
Organization: Impact Services Corporation (PA)
Year: 2022 Accepted: 2023-07-31
Auditor: Zelenkofske Axelrod LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49588 2022-001 Significant Deficiency - P
626030 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
93.558 Temporary Assistance for Needy Families $2.57M Yes 1
64.024 Va Homeless Providers Grant and Per Diem Program $936,511 - 0
14.267 Continuum of Care Program $679,842 - 0
17.258 Wia Adult Program $634,592 - 0
14.239 Home Investment Partnerships Program $500,000 - 0
17.804 Local Veterans' Employment Representative Program $425,302 - 0
93.569 Community Services Block Grant $156,105 - 0
14.218 Community Development Block Grants/entitlement Grants $80,000 - 0
17.259 Wia Youth Activities $64,036 - 0
17.278 Wia Dislocated Worker Formula Grants $60,276 - 0

Contacts

Name Title Type
KNSDCJKMXJX9 Casey O'Donnell Auditee
2157391600 Jeffrey Weiss Auditor
No contacts on file

Notes to SEFA

Title: Home Investment Partnership Program (ALN #14.239) Accounting Policies: The accompanying consolidated Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of Impact Services Corporation and Its Affiliates (collectively, Impact) under programs of the federal government for the year ended June 30, 2022, except those programs under Impact Loan Fund, Inc. Impact Loan Fund, Inc.s Schedule of Expenditures of Federal Awards was issued under separate cover and submitted to the Federal Clearinghouse separately. The information in the Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Impact, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of Impact Services Corporation and Its Consolidated Affiliates. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement. There were no subrecipients of federal, state and city awards in fiscal year 2022. Revenue recognized for certain grants were allocated to federal, state and/or city sources using the same percentage as calculated from information provided by the funding source. Grants that the funding source did not indicate any percentage were allocated 100% to federal programs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were three loans outstanding under the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program as of June 30, 2022 as follows:1.Federal Home Loan Bank of New York (2014) $ 500,0002.Federal Home Loan Bank of Pittsburgh (2014) 250,0003.Federal Home Loan Bank of Pittsburgh (2016) 500,000 $ 1,250,000Relief from any mortgage repayment will be granted for the 2014 loans as long as the property is operated in compliance with HUD regulations governing Low Income Housing for a period of 15 years from the date of project completion that was placed in service on December 22, 2015. The balance on the 2016 loan will be forgiven at the end of the compliance period as long as the property is operated in compliance with HUD regulations governing Low Income Housing for a period of 15 years starting on the date the project was completed on August 20, 2018.

Finding Details

Finding 2022-001
Consolidated Financial Statement Findings ? Required to be reported in accordance with Government Auditing Standards. Significant Deficiency ? Item 2022-001 Condition: Impact?s June 30, 2022 consolidated financial statements were not issued until June 30, 2023. The audit process was significantly delayed because accounting records were not available in a timely manner as planned. Nine months after year-end, significant adjusting entries were required to reasonably state the consolidated financial statements in accordance with U.S. generally accepted accounting principles. Reporting deadlines for funders and creditors were missed. Criteria: Audited financial statements are due to various funders and creditors ranging from 120 to 180 days after Impact?s fiscal year end. Cause: During fiscal year 2022, Impact experienced a significant increase in operations, including the addition of six related entities. There were insufficient resources to manage the complexity of accounting and financing transactions in a timely manner. Effect: The audited June 30, 2022 consolidated financial statements were not issued until one year later on June 30, 2023. Questioned Costs: This finding does not involve any questioned costs. Recommendation: We recommend Impact ensure that financial records for all related entities are reconciled and closed on a monthly basis. Monthly financial statements, both individual entities and on a consolidated basis, should be provided to an analyzed by management and the Board of Directors. All financial information should be filed with funders and creditors in a timely manner. Management?s Response: Impact will take this recommendation and implement revised procedures to ensure timely month-end and year-end financial statements are provided to management, the Board of Directors, and independent auditors. Section III ? Uniform Guidance Finding Significant Deficiency ? Item 2022-001 As a result of the significant deficiency described above, the June 30, 2022 annual single audit was not issued timely, including all reports due in accordance with the Single Audit Act and Uniform Guidance and submission of the Data Collection Form to the Federal Audit Clearinghouse. These filings are due on the earlier of nine months after Impact?s year-end or thirty days after audit issuance. All aspects of the 2022-001 finding described above apply to the Uniform Guidance Finding.
Finding 2022-001
Consolidated Financial Statement Findings ? Required to be reported in accordance with Government Auditing Standards. Significant Deficiency ? Item 2022-001 Condition: Impact?s June 30, 2022 consolidated financial statements were not issued until June 30, 2023. The audit process was significantly delayed because accounting records were not available in a timely manner as planned. Nine months after year-end, significant adjusting entries were required to reasonably state the consolidated financial statements in accordance with U.S. generally accepted accounting principles. Reporting deadlines for funders and creditors were missed. Criteria: Audited financial statements are due to various funders and creditors ranging from 120 to 180 days after Impact?s fiscal year end. Cause: During fiscal year 2022, Impact experienced a significant increase in operations, including the addition of six related entities. There were insufficient resources to manage the complexity of accounting and financing transactions in a timely manner. Effect: The audited June 30, 2022 consolidated financial statements were not issued until one year later on June 30, 2023. Questioned Costs: This finding does not involve any questioned costs. Recommendation: We recommend Impact ensure that financial records for all related entities are reconciled and closed on a monthly basis. Monthly financial statements, both individual entities and on a consolidated basis, should be provided to an analyzed by management and the Board of Directors. All financial information should be filed with funders and creditors in a timely manner. Management?s Response: Impact will take this recommendation and implement revised procedures to ensure timely month-end and year-end financial statements are provided to management, the Board of Directors, and independent auditors. Section III ? Uniform Guidance Finding Significant Deficiency ? Item 2022-001 As a result of the significant deficiency described above, the June 30, 2022 annual single audit was not issued timely, including all reports due in accordance with the Single Audit Act and Uniform Guidance and submission of the Data Collection Form to the Federal Audit Clearinghouse. These filings are due on the earlier of nine months after Impact?s year-end or thirty days after audit issuance. All aspects of the 2022-001 finding described above apply to the Uniform Guidance Finding.