FAC Explorer

Audit 52449

FY End
2022-12-31
Total Expended
$1.17M
Findings
2
Programs
2
Organization: Mercy Haven Inc. (NY)
Year: 2022 Accepted: 2023-09-28
Auditor: Nawrocki Smith LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47178 2022-001 Material Weakness Yes L
623620 2022-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.879 Mainstream Vouchers $1.15M Yes 1
14.217 Community Development Block Grant $20,527 - 0

Contacts

Name Title Type
D1CJGMCZCJA8 Patricia Griffith Auditee
6312778300 Christopher Angotta Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (1) Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of Mercy Haven, Inc. (the Organization), a nonprofit organization asdefined in Note (1) to the Organizations financial statements, under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule ispresented in accordance with the requirement of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the Organization, it is not intended to and does not present the financial position,changes in net assets, functional expenses or cash flows of the Organization.(2) Basis of AccountingExpenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.Pass-through numbers are presented where available.The amounts reported as federal expenditures were obtained from the federal financial reportsfor the applicable program and periods. The amounts reported in these reports are preparedfrom records maintained for each program, which are reconciled with the Organizationsfinancial reporting system.(3) Indirect CostsThe Organization has elected not to use the 10% de minimis indirect cost rate allowed under theUniform Guidance.(4) Other DisclosuresNo insurance is carried specifically to cover equipment purchased with federal funds. Anyequipment purchased with federal funds has only a nominal value, and is covered by theOrganizations insurance policies.There were no loans or loan guarantees outstanding at year end.(5) Major Program DeterminationThe Organization was deemed not to be a low-risk auditee, therefore, major programs weredetermined based on 40% of total federal award expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001 - Internal Control Over Compliance, and Compliance with Reporting U.S. Department of Housing and Urban Development Housing Voucher Cluster: Mainstream Vouchers - CFDA No.14.879 Criteria: Internal controls should be in place to ensure that the Organization electronically submits unaudited and audited financial information to the U.S. Department of Housing and Urban Development (?HUD?) via the Real Estate Assessment Center (?REAC?) in accordance with HUD regulations (24 CFR 5.801 - Uniform Financial Reporting Standards). Condition: The Organization did not electronically submit to HUD via REAC its fiscal 2022 unaudited financial information within 60 days after its fiscal year end, or its audited financial information within 9 months after its fiscal year end. Cause: The Organization's past REAC submission of unaudited financial information was rejected and remains unresolved. As a result, submissions of audited financial information and subsequent years' unaudited and audited financial information could not be done because of the unresolved rejection of the original unaudited financial information. Context: The Organization was advised in 2014 by a HUD analyst that the past due unaudited and audited financial information must be submitted sequentially and chronologically. When attempting to resubmit the 2010 unaudited financial information with explanations in September 2016, the Organization encountered a technical error within the REAC system and was unable to complete the resubmission. The Organization's outside fee accountant contacted both the current assigned HUD analyst and the HUD Technical Assistance Center (?TAC?) for assistance, but a solution was not provided by TAC. Effect: Noncompliance could result in the Organization being denied reimbursement of program expenditure, or other sanctions and penalties by HUD. Questioned Costs: None reported. Identification of a Repeat Finding: This is a repeat finding from previous audits, finding No. 2009-003, No. 2016-001, No. 2017-001, No. 2018-001, No. 2019-001, No. 2020-001 and No. 2021-001. Recommendation: The Organization must resolve the REAC system technical issues with HUD, and submit all past due filings. Procedures must then be implemented to ensure the unaudited and audited financial statements are electronically submitted to HUD via REAC on a timely basis going forward. Views of Responsible Officials of Auditee: The Organization agrees with the finding and will again reach out to HUD to seek assistance to resolve these technical issues affecting the resubmission of the 2010 unaudited financial information, so that all past due submissions can be filed.
Finding 2022-001
2022-001 - Internal Control Over Compliance, and Compliance with Reporting U.S. Department of Housing and Urban Development Housing Voucher Cluster: Mainstream Vouchers - CFDA No.14.879 Criteria: Internal controls should be in place to ensure that the Organization electronically submits unaudited and audited financial information to the U.S. Department of Housing and Urban Development (?HUD?) via the Real Estate Assessment Center (?REAC?) in accordance with HUD regulations (24 CFR 5.801 - Uniform Financial Reporting Standards). Condition: The Organization did not electronically submit to HUD via REAC its fiscal 2022 unaudited financial information within 60 days after its fiscal year end, or its audited financial information within 9 months after its fiscal year end. Cause: The Organization's past REAC submission of unaudited financial information was rejected and remains unresolved. As a result, submissions of audited financial information and subsequent years' unaudited and audited financial information could not be done because of the unresolved rejection of the original unaudited financial information. Context: The Organization was advised in 2014 by a HUD analyst that the past due unaudited and audited financial information must be submitted sequentially and chronologically. When attempting to resubmit the 2010 unaudited financial information with explanations in September 2016, the Organization encountered a technical error within the REAC system and was unable to complete the resubmission. The Organization's outside fee accountant contacted both the current assigned HUD analyst and the HUD Technical Assistance Center (?TAC?) for assistance, but a solution was not provided by TAC. Effect: Noncompliance could result in the Organization being denied reimbursement of program expenditure, or other sanctions and penalties by HUD. Questioned Costs: None reported. Identification of a Repeat Finding: This is a repeat finding from previous audits, finding No. 2009-003, No. 2016-001, No. 2017-001, No. 2018-001, No. 2019-001, No. 2020-001 and No. 2021-001. Recommendation: The Organization must resolve the REAC system technical issues with HUD, and submit all past due filings. Procedures must then be implemented to ensure the unaudited and audited financial statements are electronically submitted to HUD via REAC on a timely basis going forward. Views of Responsible Officials of Auditee: The Organization agrees with the finding and will again reach out to HUD to seek assistance to resolve these technical issues affecting the resubmission of the 2010 unaudited financial information, so that all past due submissions can be filed.