Finding 2023-03
Reporting – Data Collection Form and Reporting Package (Significant Deficiency)
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: 2020-2023
Responsible Officials Contact Information:
1) Monae Priolenau-Jones
Telephone 718-310-5610, mpriolenau@wearebcs.org
2) Jodi Querbach
Telephone 718-310-5600, X 1015 jquerbach@wearebcs.org
View of Responsible Officials and 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, 2025 deadline.
Pursuant to the action plan outlined in the response to Finding 2023 001, the audited financial statements will be issued by November 30th, 2024. Immediately following, the finance team will turn their attention to the reports required by the Uniform Guidance and the Federal Form 990 with a goal of completing fiscal 2024 reporting requirement by January 2025.
Recommendation:
We recommend that BCS enhance its closing and reporting process to ensure the reports required by the Uniform Guidance is submitted by the aforementioned deadline.