EIN: 571212859
UEI: GSA_MIGRATION
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2022. 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 March 29, 2023 (1244 days ago).
What is a management decision? →Federal Program ? Department of Health and Human Service?s federal assistance listing number 93.912, Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement. Criteria ? Under Uniform Guidance charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must reasonably reflect the total activity for which the employee is compensated; and 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. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided certain requirements are met, including that the non-federal entity?s system of internal controls includes processes to review after-the-fact interim charges made to a federal award based on budget estimates and that all necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition ? CADY, Inc.?s accounting policies and procedures includes: salaries and wages charged to federal awards shall be based on the actual time employees work on the funded activity and shall be supported by timesheets that separately report the total time worked on each project and leave. CADY, Inc. used budget estimates to distribute employees? salaries and wages among their various federal awards, non-federal awards and indirect cost activities without reviewing the charges to ensure that the final amount charged to the federal awards were accurate and properly allocated. Employees are completing timesheets and documenting activities; however, the timesheet format is not consistent for all employees and at times did not include the awards or activities the employees were working on. Cause ? Due to COVID-19, CADY, Inc. has been unable to hire a director of finance who would have been tasked with overseeing the after-the-fact adjustments. Effect or potential effect ? CADY, Inc. is not following Uniform Guidance in regard to charges to federal awards for salaries and wages. Questioned costs ? None. Context ? See Schedule of Findings and Questioned Costs for chart/table The sampling was a statistically valid sample. Recommendation ? We recommend CADY, Inc. implement one consistent timesheet format and a procedure to either charge salaries and wages to federal awards based on the actual time employees work on the funded activity when salaries and wages are first recorded to the general ledger, or a procedure to review after-the-fact charges made to a federal award based on budget estimates. We also recommend the written policy align with the procedures followed in practice. Views of responsible officials ? Management has already implemented a new timesheet format that will be consistent for all employees. Management is further aware of the need for a procedure to ensure salaries and wages are charged to federal awards based on the timesheets. A director of finance has been hired to start October 3, 2022 and will be helping to implement a procedure.
Show full finding ▾Hide full finding ▴Federal Program ? Department of Health and Human Service?s federal assistance listing number 93.912, Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement. Criteria ? Under Uniform Guidance charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must reasonably reflect the total activity for which the employee is compensated; and 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. Budget estimates alone do not qualify as support for charges to federal awards, but may be used for interim accounting purposes, provided certain requirements are met, including that the non-federal entity?s system of internal controls includes processes to review after-the-fact interim charges made to a federal award based on budget estimates and that all necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition ? CADY, Inc.?s accounting policies and procedures includes: salaries and wages charged to federal awards shall be based on the actual time employees work on the funded activity and shall be supported by timesheets that separately report the total time worked on each project and leave. CADY, Inc. used budget estimates to distribute employees? salaries and wages among their various federal awards, non-federal awards and indirect cost activities without reviewing the charges to ensure that the final amount charged to the federal awards were accurate and properly allocated. Employees are completing timesheets and documenting activities; however, the timesheet format is not consistent for all employees and at times did not include the awards or activities the employees were working on. Cause ? Due to COVID-19, CADY, Inc. has been unable to hire a director of finance who would have been tasked with overseeing the after-the-fact adjustments. Effect or potential effect ? CADY, Inc. is not following Uniform Guidance in regard to charges to federal awards for salaries and wages. Questioned costs ? None. Context ? See Schedule of Findings and Questioned Costs for chart/table The sampling was a statistically valid sample. Recommendation ? We recommend CADY, Inc. implement one consistent timesheet format and a procedure to either charge salaries and wages to federal awards based on the actual time employees work on the funded activity when salaries and wages are first recorded to the general ledger, or a procedure to review after-the-fact charges made to a federal award based on budget estimates. We also recommend the written policy align with the procedures followed in practice. Views of responsible officials ? Management has already implemented a new timesheet format that will be consistent for all employees. Management is further aware of the need for a procedure to ensure salaries and wages are charged to federal awards based on the timesheets. A director of finance has been hired to start October 3, 2022 and will be helping to implement a procedure.
2021 Corrective Action Plan Finding 2021-001- Salaries and Wages Plan: Upon learning of the finding, CADY, Inc. implemented a new timesheet format that is consistent across the organization, effective August 1, 2022. We have hired a director of finance, starting October 3, 2022, who will receive executive coaching from a financial consultant, a CPA, with significant expertise in federal grants management and reporting. Together, we will explore the best option for CADY, Inc., to record and adjust salaries and wages charged to federal awards. Whether that be a change in how we originally record salaries and wages, to base it off from the actual time worked as reported on timesheets; or if we add a process to review after-the-fact interim charges made to federal awards based on budget estimates. In addition , the organization contracted with a professional consulting service to assess and document accounting systems procedures and processes; payroll, and grant account ing/reporting will be included in this assessment. The finance director will be involved in the process and will oversee implementation of recomm endations for process improvement and efficiencies. Expected Implementation Date: August 1, 2022 and on-going Contact: Debra Naro and Sarah Roberts CADY, Inc. 94 Highland Street Plymouth, NH 03264 (603) 536-9793
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