ENCORE COMMUNITY SERVICE

2021-001 ? Activities Allowed/Allowable Costs Program: CFDA# 93.044/93.045/93.053 ? Aging Cluster Sponsor Award Number: 20211412648/20210001201/20201405810 Sponsor Agency: U.S. Department of Health & Human Services passed through New York City Department for the Aging Criteria: Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i)Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii)Be incorporated into the official records of the non-Federal entity; (iii)Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv)Encompass both federally assisted, and all other activities compensated by the non-Federal entity on an integrated basis; (v)Comply with the established accounting policies and practices of the non-Federal entity; (vi)Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Citation: 2 CFR 200.430(i) Condition: Currently, time sheets are maintained for all employees, but they do not specify actual time spent for each program or function. The Agency allocates the salaries of administrative staff based on estimates and budget limitations. The methodology for allocating the salaries of home delivered meal personnel is based on the number of meals delivered. However, this methodology was not properly applied for approximately 9 months of the fiscal year. Cause: Allocation to funding sources were entered in the books based on budget estimates rather than timekeeping reports for administrative staff. In addition, the allocation methodology was not properly applied for home delivered meals. Effect: The amount of personnel services charged to the federal award does not meet the documentation requirements outlined in Cost Principles of Uniform Guidance. Questioned Costs: Out of the entire population of staff charged to the major program only two employees worked on the major program and administration for which timesheets could not substantiate time and effort. The total payroll costs related to these employees amount to $63,150. Context: Time sheets are maintained for all employees, but they do not specify actual time spent for each program or function. Salaries for home delivered meal personnel is allocated based on the number of meals served, while salaries of kitchen staff is allocated based on the number of clients served. Salaries of program administration personnel is allocated based on estimates and budget limitations. There were only two program administration personnel that were charged to the major program. Repeat Finding: No Recommendation: We recommend that all program administration personnel use a timesheet to track their actual time spent working on each specific program and that be used as the basis for recording salaries on the books and used as the source of costs that get charged to federal awards. The timesheets should be reviewed and approved by an immediate supervisor. Allocation methodologies should be reviewed monthly for proper application at the time the invoice/voucher is prepared. Views of Responsible Officials: See Corrective Action Plan attached.

2021-002 ? Reporting Program: CFDA# 93.044/93.045/93.053 ? Aging Cluster Sponsor Award Number: 20211412648/20210001201/20201405810 Sponsor Agency: U.S. Department of Health & Human Services passed through New York City Department for the Aging Criteria: All invoices/vouchers for the reimbursement of Year-To-Date expenses, must be submitted no later than 90 days after the end of the contract fiscal year Citation: New York City Department for the Aging financial manual Condition: The final Year-To-Date invoices/vouchers for the Home Delivered Meals contracts were not submitted timely. Cause: The Agency does not have a procedure in place to track the types of reports that need to be submitted or the due date thereof. Effect: Expenses incurred were not reported to grantor timely Questioned Costs: None. Context: The final year-to-date invoices/vouchers were not submitted within the required due date for all contracts. Repeat Finding: No Recommendation: We recommend that the Agency establish procedures to monitor the type of report and the due date that it must be submitted. The final fiscal closeout report should be submitted no later than 90 days after the end of the contract fiscal year as it is required by the New York City Department for the Aging financial manual. Views of Responsible Officials: See Corrective Action Plan attached.