Catholic Charities of the Diocese of Albany, Inc.Non-Profit

Finding 2025-002 (Material Weakness and Compliance Finding - ASSISTANCE LISTINGS #16.575, #93.788, #10.557) Condition - Based on vouchers selected in our single audit testing as well as discussions throughout the audit, we noted that there is multiple cases across multiple agencies of late vouchering. Although timeliness of vouchers was specifically tested during the single audit, similar delays were observed with grants outside the single audit scope. Criteria – All grants across all agencies should be reconciled on a monthly basis to ensure timely and accurate vouchering. Cause – Vouchers were delayed for various reasons including the transition to Sage Intacct, staffing turnover and delays in receiving fully executed contracts. Effect – Late vouchering increases the risk of delayed or denied reimbursement from funders. Recommendation - As the Organization continues its transition to Sage Intacct, we recommend that monthly reconciliations be completed for all grants to strengthen and streamline the vouchering process. Additionally, all grant-related expenditures should be tracked and reconciled by grant each month to ensure that voucher preparation is efficient and minimizes delays.

Condition: We noted one disbursement during our testing for this program that lacked appropirate support that the charge was directly related to this federal program for $700. Criteria: Support specific to the program should be maintained for all expenditures. Cause: Support could not be produced and was not maintained by the Agency. Effect: Expenses charged to the program may have been overstated. Recommendation: Ensure that appropriate program related documentation is maintained for all allowable expenditures.

Condition: There was no rent calculation worksheet present for one of the individuals tested to indicate income in order to ensure program income portions are being appropriately calculated. Criteria: All participants should have a rent calculation worksheet on file. Cause: Support could not be produced and was not maintained by the Agency. Effect: The Organization was not in compliance with testing requirements and controls established. Recommendation: Management should ensure all internal controls are functioning as designed for this program and all support is maintained for individuals enrolled in the program.

Condition: During our testing of the matching requirements for this program, the Agencies could not provide us with documentation of the internal controls in pace over the matching compliance requirement. Criteria: Approval and sign-offs indicating review of matching requirements should be maintained. Cause: No formal procedure in place to maintain this documentation. Effect: We could not re-perform internal control procedures for the matching compliance requirement. Recommendation: Management should ensure all internal controls are functioning as designed for this program and this is documented on the matching support for the program.

Condition - There was no participant signature present in the NYWIC system for one of the individuals tested to indicate that the EBT card was provided to the individual. Criteria - Either a participant signature should be documented when benefits are provided or the file should have indication that remote benefits were issued. Cause - Information could not be produced and the individual handing out the benefits is no longer employed by the Organization. Effect - The Organization was not in compliance with testing requirements and controls established. Recommendation - Management should ensure all internal controls are functioning as designed for this program.

Condition: The Organization did not submit certain quarterly financial reports within the required timeline noted in the contract. Criteria: Quarterly financial reports are due 30 days after the period ends. Cause: Due to difficulty with the grants management system for this grant, reports were submitted after the required time frame. Effect: The Organization was not in compliance with reporting requirements outlined in this contract. Recommendation: Management should implement a system and control process to ensure timely reporting for this contract. Management?s Response: Staff have been reassigned to provide additional month end support to ensure timely filing of vouchers which will be reviewed by program managers.

Condition: The Organization did not update the rent roll for two individuals tested and that resulted in a larger, but immaterial, amount being vouchered to the funding source. Criteria: The appropriate amount of rent should be charged to the individual and funding source based on income and fair market value rent guidelines. Cause: Lease agreement and rent calculations were updated but that was not reflected in the documentation used to generate monthly vouchers and billings. Effect: The funding source was overcharged for an immaterial amount of rent in two cases. Recommendation: Management should ensure an additional control set is added to the process whereby the rent rolls are compared to the underlying lease and rent calculations to avoid this error from occurring in future periods.

Condition: The Organization did not submit quarterly financial reports within the required timeline noted in the contract. In addition, we could not ascertain the timeliness of the final report because it was not available for us to review. Criteria: Quarterly financial reports are due 30 days after the period ends. Cause: Due to difficulty with the grants management system for this grant, reports were submitted after the required time frame. Effect: The Organization was not in compliance with reporting requirements outlined in this contract. Recommendation: Management should implement a system and control process to ensure timely reporting for this contract. Management?s Response: This error in timing of report submission has been discussed with funding source. We have begun implementation of a new grants management tool and will provide additional resources to ensure timely submission of all reports in future periods.