Finding 45767 (2022-003)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-06-14

Audit: 39938

Organization: Brooklyn Bureau of Community Service Dba Brooklyn Community Services (NY)

Auditor: Grant Thornton LLP

AI Summary

Core Issue: BCS failed to submit its single audit reporting package to the Federal Audit Clearinghouse on time.
Impacted Requirements: This delay violates 2 CFR Section 200.512(a), which mandates submission within nine months after the audit period ends.
Recommended Follow-Up: Ensure timely completion of financial statements to avoid future delays in audit reporting.

Finding Text

U.S. Department of Health and Human Services Community Services Block Grant (Federal Assistance Listing #93.569) Federal Award Numbers: 60204, 60215, 60225, and 60235 Federal Award Year: 2020-2022 Criteria: Pursuant to 2 CFR Section 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditor?s reports within the earlier of 30 days after receipt of the auditor?s reports or nine months after the end of the audit period to the Federal Audit Clearinghouse (?FAC?). BCS did not submit its reporting package to the FAC timely. Condition: The single audit of BCS?s federal award for the year ended December 31, 2022, was not completed within the nine months following the period-end. Cause: The delay in the issuance of the single audit report for the year ended December 31, 2022, was to the late issuance of the consolidated and combined financial statements as noted in Finding 2022-001. Effect: As a result of the late financial statement issuance, BCS did not submit its single audit reporting package within the required timeframe. As such, BCS did not comply with the regulatory requirements. Questioned Costs: None identified. Identified as a Repeat Finding: No.

Corrective Action Plan

Management agrees that the single audit reporting package was not submitted within the required timeframe due to key employee turnover coupled with staffing challenges subsequent to year end. In addition, BCS began a transition from one third-party external firm to another third-party firm in September of 2022. The former firm held the general ledger data for BCS and has been slow to turn it over in a manageable manner causing the delay in filing of the single audit report package. Dmitriy Goyzman (current Chief Financial Officer) was hired in December of 2022 and is actively in the process of hiring a new internal finance team. Back office finance department operations are currently filled by the second third-party external firm. In addition to the CFO, BCS has payroll, purchasing and 2 staff accountants and will have a Controller on staff by mid- June of 2023. Hiring of five additional positions for grants management will be completed in the Fall of 2023 replacing BDO personnel with in-house staff. In our new configuration, BCS will: 1) own its financial software and data, 2) be sufficiently staffed to run its day-to-day financial operations, 3) be able to support program operations in an efficient manner and 4) be able to respond and complete audits on time. The management will ensure that the single audit report package is submitted before the March 31, 2024 deadline.

Other Findings in this Audit

45766 2022-002

- Repeat
45768 2022-002

- Repeat
45769 2022-003

Significant Deficiency
622208 2022-002

- Repeat
622209 2022-003

Significant Deficiency
622210 2022-002

- Repeat
622211 2022-003

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.569	Community Services Block Grant	$296,495
14.235	Supportive Housing Program	$254,430
93.958	Cmhs Block Grant	$238,400
17.259	Wia/wioa Youth Activities	$236,121
10.558	Child and Adult Care Food Program	$133,612
14.231	Emergency Shelter Grant	$118,850
94.006	Americorps	$34,039