Finding Text
FINDING:
Nonmaterial Noncompliance, Significant Deficiency
SPECIAL TESTS AND PROVISIONS
Federal Program(s) – Community Development Block Grants/Entitlement Grants (“CDBG Cluster”) – IS49 Beacon
Federal Agency(s) – United States Department of Housing and Urban Development
Pass-Through Entity(ies) – New York City Department of Youth and Community Development
CFDA Number(s) – 14.218
Pass-through Number(s) – 99306A
Federal Award Year – June 30, 2024
Criteria:
To ensure compliance with federal guidelines, it is essential to establish appropriate monitoring protocols to ensure that the JCC is in compliance with both contract terms and the compliance requirements of its federal programs. While multiple staff members are involved in managing grants, during the tested period, the JCC lacked a designated individual responsible for overseeing grant compliance. As a result, certain performance-based provisions of the contract, such as participant counts and age group breakdowns, were not accurately tracked and reported to the New York City Department of Youth and Community Development (“NYCDYCD”) during the year.
Condition/context/cause:
The JCC did not meet certain performance standards, partly due to external circumstances beyond its control. Specifically, a shooting incident outside the center where the JCC program was held made it challenging to attract participants. Despite this, a robust internal control environment should include compliance measures to ensure proper grant and program monitoring.
Questioned Costs:
None.
Effect:
The JCC was unable to meet certain performance based requirements such as the number of participants and break out of those participants by age category.
Auditors’ Recommendation:
We recommend that the JCC establish formal monitoring procedures to track performance metrics effectively. Additionally, in cases where external factors impact program performance, the JCC should implement a process for timely communication with the funding agency to address potential compliance concerns.
Management’s Response:
The JCC acknowledges and agrees with the finding and is in the process of developing procedures to ensure compliance with the grant/contract provisions and will start implementing this recommendation during the year ended June 30, 2025.