FAC Explorer

Finding 35572 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-20
Audit: 32000
Organization: Stanley M. Isaacs Neighborhood Center, Inc. (NY)
Auditor: Pkf O'Connor Davies LLP

AI Summary

  • Issue: The Single Audit for the Federal Program was filed late due to delays in financial analysis.
  • Impacted Requirements: Timely filing of the Single Audit is essential for accurate financial reporting.
  • Recommended Follow-up: Regularly analyze and reconcile key accounts at least quarterly to ensure timely completion of audits.

Finding Text

2022-001: Late Filing of the Single Audit Federal Program Aging Cluster, Social Services Block Grant Criteria The Single Audit should be filed timely. Condition The Single Audit report and corresponding data collection form were not completed by the due date. Cause The Center?s accounting and finance department needed more time to complete their analysis of year end account balances before the start of the audit due to turnover in the finance department. Effect Failure to have the financial data available in time resulted in the single audit being filed after the deadline. Questioned Costs See Corrective Action Plan. Context See Corrective Action Plan. Recommendation The financial condition of the Center can only be determined and communicated to the Board of Directors on a timely basis if the books and records are accurate and reconciled in a timely manner. We recommend that key general ledger accounts and reconciliations be analyzed and reconciled on a regular basis (at least quarterly) throughout the fiscal year. Views of Responsible Officials See Corrective Action Plan.

Corrective Action Plan

The delay in closing the audit was due to unprecedented difficulty in obtaining a confirmation statement for a 5% beneficial share of the perpetuity trust established by Eileen W. Bamberger that was contributed to Stanley Isaacs in 1989 which is held at Deutsche bank. This delay is attributed to the Bank's request to clarify on the trust as being Stanley Isaacs' as Meals-on-Wheels program, and the recent affiliation of Stanley Isaacs in contemplation of a merger with Goddard Riverside Community Center (Goddard). A law firm, acting pro bono, was retained to address the issues with Deutsche Bank as to the identity of the beneficiary as of June 30, 2022, and prospectively. The rest of the books and records were analyzed and provided to the audit prior to March 5, 2023.

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Other Findings in this Audit

  • 35573 2022-002
    Significant Deficiency
  • 35574 2022-001
    Significant Deficiency
  • 35575 2022-002
    Significant Deficiency
  • 35576 2022-001
    Significant Deficiency
  • 35577 2022-002
    Significant Deficiency
  • 35578 2022-001
    Significant Deficiency
  • 612014 2022-001
    Significant Deficiency
  • 612015 2022-002
    Significant Deficiency
  • 612016 2022-001
    Significant Deficiency
  • 612017 2022-002
    Significant Deficiency
  • 612018 2022-001
    Significant Deficiency
  • 612019 2022-002
    Significant Deficiency
  • 612020 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $3.76M
93.053 Nutrition Services Incentive Program $1.81M
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $1,651
93.667 Social Services Block Grant $454