EIN: 160905222
UEI: TMDVN7NDHRM6
Audited by: Saxton, Kocur and Associates, LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 20, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 20, 2026 (14 days from today).
What is a management decision? →FAC accepted this audit on March 26, 2025 — management decision was due September 26, 2025.
Criteria - 2 CFR part 200, subpart E, Appendix IV, states that indirect costs are those costs that have been incurred for common or joint objective and cannot be readily identified with a particular final cost objective. These costs are allocated to Federal awards by use of an Indirect Cost Rate negotiated with the Organization's cognizant agency. A provisional rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and to report indirect costs on Federal awards pending the establishment of a final rate for the period. A final rate is an indirect cost rate applicable to a specified past period which is based on the actual costs of the period. Once the final rate is established, upward or downward adjustments should be made to the contracts. Condition - During our compliance testing procedures, we reviewed the final Indirect Cost Rate agreement with DHHS, reviewed several months of indirect cost rate journal entries posted to contracts, and reviewed the Federal Financial Reports (SF-425) filed for various awards included in the Head Start cluster. In August 2024, COI received the agreement from DHHS. The provisional rate of 11% was reduced to a final rate of 9.5% for the period November 1, 2022 - October 31, 2023. In addition, a provisional rate of 9.5% was established to be effective for the period November 1, 2023 - October 31, 2026. As of January 2025, no billing adjustments for the final rate had been made to the contracts for the effective periods. In addition, the worksheets used to calculate the monthly indirect cost allocations had not been updated to reflect the newly established provisional rate for the current period. Furthermore, for the two SF-425 Federal Financial Reports filed after the agreement was received, no adjustment appeared to have been made to reflect the lower provisional rate. Cause - Due to the date the IDC rate agreement letter was received and that date's proximity to the end of the Organization's fiscal year end, the appropriate adjustments were not made by the end of the fiscal year. Effect - The use of the incorrect provisional rate results in overstated contract revenues and expenditures, in addition to incorrect draw down amounts being submitted to DHHS. Questioned Costs - Questioned costs are indirect costs charged to the Head Start Cluster contracts at the former provisional indirect cost rate without any billing adjustments once the final rate was established. These costs span two fiscal years and multiple contract periods. All amounts have been adjusted in these financial statements and a liability for the payback amounts has been recorded. Head Start/Early Head Start $135,557; Early Head Start Child Care Partnerships $41,611; COVID and American Rescue Plan $4,897; COVID - HS/EHS Carryover Funds $2,788; Total Questioned Costs $184,853. Recommendation - The Organization should make billing adjustments for all cost reimbursement contracts which charge funders for indirect costs using the negotiated rate. In addition, the indirect cost allocation worksheet should be updated with the effective provisional rate, so that contracts will be reporting the correct amount of costs.
Show full finding ▾Hide full finding ▴Criteria - 2 CFR part 200, subpart E, Appendix IV, states that indirect costs are those costs that have been incurred for common or joint objective and cannot be readily identified with a particular final cost objective. These costs are allocated to Federal awards by use of an Indirect Cost Rate negotiated with the Organization's cognizant agency. A provisional rate is a temporary indirect cost rate applicable to a specified period which is used for funding, interim reimbursement, and to report indirect costs on Federal awards pending the establishment of a final rate for the period. A final rate is an indirect cost rate applicable to a specified past period which is based on the actual costs of the period. Once the final rate is established, upward or downward adjustments should be made to the contracts. Condition - During our compliance testing procedures, we reviewed the final Indirect Cost Rate agreement with DHHS, reviewed several months of indirect cost rate journal entries posted to contracts, and reviewed the Federal Financial Reports (SF-425) filed for various awards included in the Head Start cluster. In August 2024, COI received the agreement from DHHS. The provisional rate of 11% was reduced to a final rate of 9.5% for the period November 1, 2022 - October 31, 2023. In addition, a provisional rate of 9.5% was established to be effective for the period November 1, 2023 - October 31, 2026. As of January 2025, no billing adjustments for the final rate had been made to the contracts for the effective periods. In addition, the worksheets used to calculate the monthly indirect cost allocations had not been updated to reflect the newly established provisional rate for the current period. Furthermore, for the two SF-425 Federal Financial Reports filed after the agreement was received, no adjustment appeared to have been made to reflect the lower provisional rate. Cause - Due to the date the IDC rate agreement letter was received and that date's proximity to the end of the Organization's fiscal year end, the appropriate adjustments were not made by the end of the fiscal year. Effect - The use of the incorrect provisional rate results in overstated contract revenues and expenditures, in addition to incorrect draw down amounts being submitted to DHHS. Questioned Costs - Questioned costs are indirect costs charged to the Head Start Cluster contracts at the former provisional indirect cost rate without any billing adjustments once the final rate was established. These costs span two fiscal years and multiple contract periods. All amounts have been adjusted in these financial statements and a liability for the payback amounts has been recorded. Head Start/Early Head Start $135,557; Early Head Start Child Care Partnerships $41,611; COVID and American Rescue Plan $4,897; COVID - HS/EHS Carryover Funds $2,788; Total Questioned Costs $184,853. Recommendation - The Organization should make billing adjustments for all cost reimbursement contracts which charge funders for indirect costs using the negotiated rate. In addition, the indirect cost allocation worksheet should be updated with the effective provisional rate, so that contracts will be reporting the correct amount of costs.
The Agency agrees with this finding and will implement the following: Make all necessary accounting adjustments to reflect the changes in the indirect cost charged for FY2023 & FY2024; Notify all affected funding agencies of the need to adjust the indirect cost charged, thus correcting any overcharges made through the remittance of funding and/or budget amendments; Update the indirect cost allocation worksheet with the correct provisional rate as per the current Nonprofit Rate Agreement from the Department of Health and Human Services.
FAC accepted this audit on April 26, 2024 — management decision was due October 26, 2024.
FAC accepted this audit on March 29, 2023 — management decision was due September 29, 2023.
FAC accepted this audit on March 28, 2022 — management decision was due September 28, 2022.
FAC accepted this audit on March 28, 2021 — management decision was due September 28, 2021.
FAC accepted this audit on June 3, 2020 — management decision was due December 3, 2020.
2019-001 - Weatherization Assistance for Low-Income Persons - CFDA No. 81.042 - Passed through New York State Division of Housing and Community Renewal, C093170. CRITERIA - OMB's Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) established new requirements related to Federal awards. Requirements under the Uniform Guidance stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specially, new procurement standards under 2 CFR - Subpart D, Sections 200.318-326, became effective for the Organization's fiscal year beginning November 1, 2018. CONDITION: The Organization's written financial policies and procedures related to the procurement standards required under the Uniform Guidance have not been updated to align with such standards. CAUSE: Written policies and procedures have not been updated to align with the Uniform Guidance requirements. EFFECT: Certain costs of the program may be disallowed if not procured in accordance with the Uniform Guidance requirements. AUDITORS' RECOMMENDATION: We recommend the Organization take immediate action to review and update its written policies and procedures to be in alignment with the procurement and other standards currently required under the Uniform Guidance. We also recommend that on an annual basis, the Organization review the Uniform Guidance for any new standards or changes to existing standards and update the Organization's policies and procedures. Views of Responsible Officials and Planned Corrective Action: Finding was discussed with Diane G. Hewitt-Johnson, CEO, and Mary Lou Bailen, CFO, on February 18, 2020.
Show full finding ▾Hide full finding ▴2019-001 - Weatherization Assistance for Low-Income Persons - CFDA No. 81.042 - Passed through New York State Division of Housing and Community Renewal, C093170. CRITERIA - OMB's Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) established new requirements related to Federal awards. Requirements under the Uniform Guidance stipulate that federal award recipients must document their policies and procedures over certain aspects of financial and program management. Specially, new procurement standards under 2 CFR - Subpart D, Sections 200.318-326, became effective for the Organization's fiscal year beginning November 1, 2018. CONDITION: The Organization's written financial policies and procedures related to the procurement standards required under the Uniform Guidance have not been updated to align with such standards. CAUSE: Written policies and procedures have not been updated to align with the Uniform Guidance requirements. EFFECT: Certain costs of the program may be disallowed if not procured in accordance with the Uniform Guidance requirements. AUDITORS' RECOMMENDATION: We recommend the Organization take immediate action to review and update its written policies and procedures to be in alignment with the procurement and other standards currently required under the Uniform Guidance. We also recommend that on an annual basis, the Organization review the Uniform Guidance for any new standards or changes to existing standards and update the Organization's policies and procedures. Views of Responsible Officials and Planned Corrective Action: Finding was discussed with Diane G. Hewitt-Johnson, CEO, and Mary Lou Bailen, CFO, on February 18, 2020.
Planned Corrective Action - The Organization's Financial Policies and Procedures Manual is currently being reviewed for revisions. The revised policies and procedures will include all changes necessary under the Uniform Guidance. The revised Manual is tentatively scheduled to be submitted to the Board of Directors for approval at its March 2020 meeting.
FAC accepted this audit on March 25, 2019 — management decision was due September 25, 2019.
FAC accepted this audit on March 12, 2018 — management decision was due September 12, 2018.
FAC accepted this audit on April 3, 2017 — management decision was due October 3, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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