FAC Explorer

Finding 1190790 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-03-27
Audit: 395080
Organization: Aids Council of Northeastern New York, Inc. D/b/a Alliance for Positive Health (NY)
Auditor: BST & CO CPAS LLP

AI Summary

  • Core Issue: The Alliance failed to prepare an accurate and complete Schedule of Expenditures of Federal Awards (SEFA) as required by federal guidelines.
  • Impacted Requirements: This finding highlights inadequate internal controls, leading to discrepancies in federal expenditure reporting and potential non-compliance with federal award requirements.
  • Recommended Follow-Up: Assign knowledgeable staff to oversee federal grants and ensure compliance with reporting requirements, as outlined in the Corrective Action Plan.

Finding Text

2025-003: Accurate and Complete Schedule of Expenditures of Federal Awards (SEFA) Criteria or specific requirement: The Alliance must prepare a SEFA that is accurate and complete in accordance with 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition and context: The Alliance did not prepare a SEFA that was accurate and complete in accordance with the Uniform Guidance, as the unadjusted totals for federal expenditures were not accurate and did not agree to underlying support. In addition, an immaterial amount of allowable expenses were included on the 2025 SEFA, that should have been included on the 2024 SEFA. Cause: The cause is due to limited internal controls related to the preparation and review of the SEFA. Effect or potential effect: Without adequate controls over this process, the Alliance may not identify all federal awards received and related compliance and reporting requirements applicable to each award. Questioned costs: None. Identification as a repeat finding, if applicable: This is a repeat finding. Recommendation: The Alliance must assign individuals who are experienced and knowledgeable in the compliance requirements of the Uniform Guidance to monitor all federal grants received to ensure that the Alliance has met the applicable compliance and reporting requirements of each federal award. Views of responsible officials: Refer to the Corrective Action Plan prepared by the Alliance in regard to this matter. 2025-004: Subrecipient Monitoring Identification of the federal program: Continuum of Care Program (AL # 14.267) Criteria or specific requirement: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200.332, the Alliance must perform specific monitoring over subrecipients. The Alliance as the pass-through entity (PTE) is responsible for monitoring the overall performance of a subrecipient to ensure that the goals and objectives of the subaward are achieved.

Corrective Action Plan

The NetSuite implementation and optimization, overseen by Joan Hayner, Interim Finance and Operation Lead, has been in process throughout 2025, which has allowed for the streamlining of many processes. As of July 2025, the schedule of federal expenditures was automatically produced in NetSuite using expenditure data within the accounting system, rather than being prepared manually. In order to ensure that the SEFA is being produced accurately and completely, the Accounting Manager, who joined the Alliance in April 2025, will become thoroughly familiar with the reporting requirements for the Alliance’s federal awards and work with NetSuite to ensure the data is accurately reflected in the system. As of March 2026, the Alliance is caught up on payments to vendors and their system now has information about the date a program service or item was for and the Alliance is better able to identify what period an expense belongs to.

Categories

Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1190778 2025-003
    Material Weakness Repeat
  • 1190779 2025-004
    Material Weakness Repeat
  • 1190780 2025-005
    Material Weakness Repeat
  • 1190781 2025-002
    Material Weakness Repeat
  • 1190782 2025-002
    Material Weakness Repeat
  • 1190783 2025-002
    Material Weakness Repeat
  • 1190784 2025-002
    Material Weakness Repeat
  • 1190785 2025-002
    Material Weakness Repeat
  • 1190786 2025-003
    Material Weakness Repeat
  • 1190787 2025-003
    Material Weakness Repeat
  • 1190788 2025-003
    Material Weakness Repeat
  • 1190789 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $280,798
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $179,931
93.917 HIV CARE FORMULA GRANTS $46,872
93.941 HIV DEMONSTRATION, RESEARCH, PUBLIC AND PROFESSIONAL EDUCATION PROJECTS $18,724
93.153 COORDINATED SERVICES AND ACCESS TO RESEARCH FOR WOMEN, INFANTS, CHILDREN, AND YOUTH $14,256
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $13,894