Finding Text
Schedule of Expenditures of Federal Awards Reporting Significant Deficiency - Community Development Block Grant Cluster Entitlement/Special Purpose Grants Federal Granting Agency: U.S. Department of Housing and Urban Development Federal Pass-through Entity: New York City Department of Youth and Community Development Assistance Listing Number: 14.218 Award Number: 99345B Award Year: July 1, 2024 – June 30, 2025 Criteria: OMB Uniform Guidance 2 CFR 200.510(b)(3) requires that the auditee provide the Federal awards expended for each individual Federal program on the Schedule of Expenditures of Federal Awards (“Federal Schedule”). In accordance with 2 CFR 200.502, the determination of when a Federal award is expended, and thereby reported on the Federal Schedule, is generally based on when the activity related to the Federal award occurs. Condition: The Community Development Block Grant Cluster Entitlement/Special Purpose Grants award is a cost reimbursement based grant that reimburses award recipients for expenditures incurred on this program, which seeks to address health inequities faced by members of New York City’s (NYC) priority populations with HIV and was first granted in July 2024. The Association did not include the expenditures incurred under this grant on the Federal Schedule in 2024, resulting in an understatement of the entire amount of the grant expenditures incurred in the prior year of $237,306. This has been corrected by management and is included in the 2025 Federal Schedule. There was no impact to our prior year major program determination. The cumulative amount of expenditures under this award are included in the 2025 Federal Schedule. Cause: When this grant was initially awarded in mid 2024, the project was not identified in the system as being federally funded at the time of grant setup and was, therefore, inappropriately excluded from the 2024 Federal Schedule. Effect: Failure to properly identify this grant as a federal award resulted in the underreporting of federal expenditures incurred in 2024 by $237,306. Questioned Costs: None Recommendation: We recommend management enhance their controls around identification of federal grants at the time of grant setup as well as enhance completeness controls as part of the preparation and review of the Federal Schedule. Repeat Finding in the Prior Year: No Management’s Views and Corrective Action Plan: Refer to Management’s View’s and Corrective Action Plan at the end of the report after the summary schedule of prior audit findings and status.