FAC Explorer

Finding 538678 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 349416
Organization: Westchester Jewish Community Services, Inc. (NY)
Auditor: Galleros Robinson CPA LLP

AI Summary

  • Core Issue: The Agency's general ledger inaccurately recorded occupancy expenses not related to the program.
  • Impacted Requirements: This misallocation violates 2 CFR § 200.302(a), affecting financial reporting and compliance.
  • Recommended Follow-Up: Strengthen expense allocation processes with better controls, regular reconciliations, and staff training.

Finding Text

Finding 2024-001, Expense Allocations - Financial Management (Assistance Listing 16.575) Criteria: Per 2 CFR § 200.302(a) (Financial Management), all recipient and subrecipient financial management systems must be sufficient to track expenditures and establish that funds have been used in accordance with federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context: The Agency’s general ledger for the program included occupancy expenses that were not used for the program. Although these expenses were erroneously recorded in the general ledger under the program, they were correctly excluded from the submitted claims. Cause: These expenses were incorrectly allocated in the general ledger due to weaknesses in internal controls over expense classification and allocation. The financial management system lacked adequate review mechanisms to ensure expenses were properly assigned to the correct program and reconciled with the submitted claims. Effect: The misallocation of expenses in the general ledger resulted in financial reports that do not accurately reflect actual program expenditures. This misstatement could impact budgetary decisions, financial reporting accuracy, and overall compliance with federal regulations. Identification as a Repeat Finding: No. Questioned Costs: None. Recommendation: We recommend that the Agency strengthen its policies and procedures for expense allocation by implementing a more structured review and approval process. This should include enhanced internal controls, periodic reconciliations of expenses between the general ledger and submitted claims, and staff training on accurate cost classification. Additionally, management should establish clear documentation procedures to support the proper allocation of expenses in the general ledger and ensure compliance with federal regulations.

Corrective Action Plan

Finding 2024-001, Expense Allocations - Financial Management (Assistance Listing 16.575) Persons Responsible: Irene Math, Chief Financial Officer, Jessica Schneibolk, Controller Comment: Per 2 CFR § 200.302(a) (Financial Management), all recipient and subrecipient financial management systems must be sufficient to track expenditures and establish that funds have been used in accordance with federal statutes, regulations, and the terms and conditions of the federal award. Response: WJCS acknowledges the audit finding regarding the misallocation of occupancy expense. We are committed to strengthening our internal controls by implementing a more structured review process for expense allocations and will provide staff training on accurate cost classification. In addition, we will formalize documentation procedures to support updated automated expense allocations. Estimated Completion Date: The additional review procedures will be implemented by March 31, 2025, and will work to update financial system expense allocations by June 1, 2025

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 538679 2024-002
    Significant Deficiency Repeat
  • 538680 2024-004
    Significant Deficiency
  • 538681 2024-003
    Significant Deficiency
  • 538682 2024-002
    Significant Deficiency Repeat
  • 538683 2024-002
    Significant Deficiency Repeat
  • 538684 2024-002
    Significant Deficiency Repeat
  • 1115120 2024-001
    Significant Deficiency
  • 1115121 2024-002
    Significant Deficiency Repeat
  • 1115122 2024-004
    Significant Deficiency
  • 1115123 2024-003
    Significant Deficiency
  • 1115124 2024-002
    Significant Deficiency Repeat
  • 1115125 2024-002
    Significant Deficiency Repeat
  • 1115126 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $417,192
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $291,221
93.590 Community-Based Child Abuse Prevention Grants $185,100
93.788 Opioid Str $137,663
93.958 Block Grants for Community Mental Health Services $107,227
16.575 Crime Victim Assistance $101,695
84.424 Student Support and Academic Enrichment Program $52,000
93.052 National Family Caregiver Support, Title Iii, Part E $48,047
84.425 Education Stabilization Fund $30,000
84.027 Special Education Grants to States $16,000
84.287 Twenty-First Century Community Learning Centers $13,969
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $8,964
93.667 Social Services Block Grant $7,787