FAC Explorer

Audit 346585

FY End
2024-06-30
Total Expended
$5.78M
Findings
4
Programs
13
Organization: Hudson County Schools of Technology (NJ)
Year: 2024 Accepted: 2025-03-18
Auditor: Donohue Gironda Doria & Tomkins LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528605 2024-003 Material Weakness - L
528606 2024-003 Material Weakness - L
1105047 2024-003 Material Weakness - L
1105048 2024-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
17.259 Wia Youth Activities $1.19M Yes 1
10.553 School Breakfast Program $173,983 - 0
10.569 Emergency Food Assistance Program (food Commodities) $135,032 - 0
84.048 Career and Technical Education -- Basic Grants to States $76,804 - 0
84.367 Improving Teacher Quality State Grants $71,999 - 0
10.555 National School Lunch Program $57,814 - 0
10.582 Fresh Fruit and Vegetable Program $35,770 - 0
84.424 Student Support and Academic Enrichment Program $32,741 - 0
10.559 Summer Food Service Program for Children $18,915 - 0
84.027 Special Education_grants to States $10,461 - 0
93.778 Medical Assistance Program $3,919 - 0
84.425 Education Stabilization Fund $2,252 - 0
84.010 Title I Grants to Local Educational Agencies $268 Yes 0

Contacts

Name Title Type
LY5NP75JK629 Nicholas Fargo Auditee
2016626661 Mauricio Canto Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3. INDIRECT COST RATE Accounting Policies: NOTE 1. GENERAL The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include federal and state award activity of the Hudson County Schools of Technology (the “District’). The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the Schedules of Expenditures of Federal Awards and State Financial Assistance. NOTE 2. BASIS OF ACCOUNTING The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance are presented on the budgetary basis of accounting with the exception of programs recorded in the Food Service Fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Note 1 to the District’s basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular 15-08. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 4. EXPENDITURES PASSED THROUGH TO SUBRECIPIENTS Accounting Policies: NOTE 1. GENERAL The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include federal and state award activity of the Hudson County Schools of Technology (the “District’). The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the Schedules of Expenditures of Federal Awards and State Financial Assistance. NOTE 2. BASIS OF ACCOUNTING The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance are presented on the budgetary basis of accounting with the exception of programs recorded in the Food Service Fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Note 1 to the District’s basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular 15-08. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not pass through any expenditures of federal awards to subrecipients.
Title: NOTE 5. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS Accounting Policies: NOTE 1. GENERAL The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include federal and state award activity of the Hudson County Schools of Technology (the “District’). The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the Schedules of Expenditures of Federal Awards and State Financial Assistance. NOTE 2. BASIS OF ACCOUNTING The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance are presented on the budgetary basis of accounting with the exception of programs recorded in the Food Service Fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Note 1 to the District’s basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular 15-08. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The basic financial statements present the General Fund and Special Revenue Fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the General Fund and Special Revenue Fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made. The General Fund is presented in the accompanying schedules on the modified accrual basis with the exception of the revenue recognition of the last state aid payment in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes the payment is not recognized until the subsequent budget year due to the state deferral and recording of the last state aid payment in the subsequent year. The Special Revenue Fund is presented in the accompanying schedules on the grant accounting budgetary basis which recognizes encumbrances as expenditures and also recognizes therelated revenues, whereas the GAAP basis does not. The Special Revenue Fund also recognizes the last State aid payment inthe current budget year, consistent with N.J.S.A. 18A:22-44.2.
Title: NOTE 6. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Accounting Policies: NOTE 1. GENERAL The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance include federal and state award activity of the Hudson County Schools of Technology (the “District’). The District is defined in Note 1 to the District’s basic financial statements. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the Schedules of Expenditures of Federal Awards and State Financial Assistance. NOTE 2. BASIS OF ACCOUNTING The accompanying Schedules of Expenditures of Federal Awards and State Financial Assistance are presented on the budgetary basis of accounting with the exception of programs recorded in the Food Service Fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Note 1 to the District’s basic financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular 15-08. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.

Finding Details

Finding 2024-003
Condition: Management is not budgeting or accounting for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system nor performing closing procedures to adequately integrate or agree grant reporting to the financial reporting system. Criteria: A central financial reporting system is an essential foundation of an internal control system over financial reporting and all financial activity should be accounted in such financial reporting system. As a compensatory control, regular and timely closing procedures can be utilized to adequately integrate any activity not initially accounted for, into the financial reporting system. Context: As a result of the independent audit, $1,554,350 in revenues and expenditures of WIOA grant activity were recorded without an adequate audit trail. Cause: WIOA grant activity is being accounted for in external worksheets that are not integrated or agreed to the District financial reporting system. As expenditures initially incurred and subsequently reimbursed by the WIOA grant are accounted in the District financial reporting system, there is a lack of sufficient audit trail for actual expenditures incurred by WIOA grant and rights and application of related reimbursements. Effect: Material misstatements of expenditures and rights to reimbursements may exist that management or employees, in the normal course of performing their assigned functions did not prevent, or detect and correct, on a timely basis. Recommendation: Management budget and account for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system or perform regular and timely closing procedures to adequately integrate or agree grant reporting with the financial reporting system. View of Responsible Official and Planned Corrective Action: Management will budget and account for the WIOA grant activity in the District’s financial reporting system.
Finding 2024-003
Condition: Management is not budgeting or accounting for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system nor performing closing procedures to adequately integrate or agree grant reporting to the financial reporting system. Criteria: A central financial reporting system is an essential foundation of an internal control system over financial reporting and all financial activity should be accounted in such financial reporting system. As a compensatory control, regular and timely closing procedures can be utilized to adequately integrate any activity not initially accounted for, into the financial reporting system. Context: As a result of the independent audit, $1,554,350 in revenues and expenditures of WIOA grant activity were recorded without an adequate audit trail. Cause: WIOA grant activity is being accounted for in external worksheets that are not integrated or agreed to the District financial reporting system. As expenditures initially incurred and subsequently reimbursed by the WIOA grant are accounted in the District financial reporting system, there is a lack of sufficient audit trail for actual expenditures incurred by WIOA grant and rights and application of related reimbursements. Effect: Material misstatements of expenditures and rights to reimbursements may exist that management or employees, in the normal course of performing their assigned functions did not prevent, or detect and correct, on a timely basis. Recommendation: Management budget and account for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system or perform regular and timely closing procedures to adequately integrate or agree grant reporting with the financial reporting system. View of Responsible Official and Planned Corrective Action: Management will budget and account for the WIOA grant activity in the District’s financial reporting system.
Finding 2024-003
Condition: Management is not budgeting or accounting for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system nor performing closing procedures to adequately integrate or agree grant reporting to the financial reporting system. Criteria: A central financial reporting system is an essential foundation of an internal control system over financial reporting and all financial activity should be accounted in such financial reporting system. As a compensatory control, regular and timely closing procedures can be utilized to adequately integrate any activity not initially accounted for, into the financial reporting system. Context: As a result of the independent audit, $1,554,350 in revenues and expenditures of WIOA grant activity were recorded without an adequate audit trail. Cause: WIOA grant activity is being accounted for in external worksheets that are not integrated or agreed to the District financial reporting system. As expenditures initially incurred and subsequently reimbursed by the WIOA grant are accounted in the District financial reporting system, there is a lack of sufficient audit trail for actual expenditures incurred by WIOA grant and rights and application of related reimbursements. Effect: Material misstatements of expenditures and rights to reimbursements may exist that management or employees, in the normal course of performing their assigned functions did not prevent, or detect and correct, on a timely basis. Recommendation: Management budget and account for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system or perform regular and timely closing procedures to adequately integrate or agree grant reporting with the financial reporting system. View of Responsible Official and Planned Corrective Action: Management will budget and account for the WIOA grant activity in the District’s financial reporting system.
Finding 2024-003
Condition: Management is not budgeting or accounting for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system nor performing closing procedures to adequately integrate or agree grant reporting to the financial reporting system. Criteria: A central financial reporting system is an essential foundation of an internal control system over financial reporting and all financial activity should be accounted in such financial reporting system. As a compensatory control, regular and timely closing procedures can be utilized to adequately integrate any activity not initially accounted for, into the financial reporting system. Context: As a result of the independent audit, $1,554,350 in revenues and expenditures of WIOA grant activity were recorded without an adequate audit trail. Cause: WIOA grant activity is being accounted for in external worksheets that are not integrated or agreed to the District financial reporting system. As expenditures initially incurred and subsequently reimbursed by the WIOA grant are accounted in the District financial reporting system, there is a lack of sufficient audit trail for actual expenditures incurred by WIOA grant and rights and application of related reimbursements. Effect: Material misstatements of expenditures and rights to reimbursements may exist that management or employees, in the normal course of performing their assigned functions did not prevent, or detect and correct, on a timely basis. Recommendation: Management budget and account for the Workforce Investment and Opportunity Act (WIOA) grant activity in the District’s financial reporting system or perform regular and timely closing procedures to adequately integrate or agree grant reporting with the financial reporting system. View of Responsible Official and Planned Corrective Action: Management will budget and account for the WIOA grant activity in the District’s financial reporting system.