FAC Explorer

Audit 358094

FY End
2023-12-31
Total Expended
$1.18M
Findings
20
Programs
2
Organization: Camden Redevelopment Agency (NJ)
Year: 2023 Accepted: 2025-06-04
Auditor: Mercadien PC Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
563891 2023-001 Material Weakness - L
563892 2023-001 Material Weakness - L
563893 2023-001 Material Weakness - L
563894 2023-001 Material Weakness - L
563895 2023-001 Material Weakness - L
563896 2023-001 Material Weakness - L
563897 2023-001 Material Weakness - L
563898 2023-001 Material Weakness - L
563899 2023-001 Material Weakness - L
563900 2023-001 Material Weakness - L
1140333 2023-001 Material Weakness - L
1140334 2023-001 Material Weakness - L
1140335 2023-001 Material Weakness - L
1140336 2023-001 Material Weakness - L
1140337 2023-001 Material Weakness - L
1140338 2023-001 Material Weakness - L
1140339 2023-001 Material Weakness - L
1140340 2023-001 Material Weakness - L
1140341 2023-001 Material Weakness - L
1140342 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $210,197 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $186,801 - 1

Contacts

Name Title Type
N9LXRGCBEQV9 Glynn Jones Auditee
8567577600 Digesh Patel Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: The schedule of expenditures of federal awards is prepared on the same basis of accounting as the Agency's financial statements. The Agency uses the accrual basis of accounting. Expenditures represent only the federal funded portions of the program. The Agency's records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: The Agency does not have an indirect cost allocation plan nor does it use the default rate of 10%. The accompanying schedules of expenditures of federal awards (the “Schedule”) include the federal award activity of the Agency under programs of the federal government for the year ended December 31, 2023. The information in the 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”). The Agency is defined in Note A of the Agency's notes to financial statements. All federal awards received directly from federal and state agencies, as well as federal passed through other government agencies are included on the schedule of expenditures of federal awards. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position or change in net position of the Agency.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: The schedule of expenditures of federal awards is prepared on the same basis of accounting as the Agency's financial statements. The Agency uses the accrual basis of accounting. Expenditures represent only the federal funded portions of the program. The Agency's records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: The Agency does not have an indirect cost allocation plan nor does it use the default rate of 10%. The schedule of expenditures of federal awards is prepared on the same basis of accounting as the Agency's financial statements. The Agency uses the accrual basis of accounting. Expenditures represent only the federal funded portions of the program. The Agency's records should be consulted to determine amounts expended or matched from non-federal sources.
Title: Note 3. Indirect Cost Rate Accounting Policies: The schedule of expenditures of federal awards is prepared on the same basis of accounting as the Agency's financial statements. The Agency uses the accrual basis of accounting. Expenditures represent only the federal funded portions of the program. The Agency's records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: The Agency does not have an indirect cost allocation plan nor does it use the default rate of 10%. The Agency does not have an indirect cost allocation plan nor does it use the default rate of 10%.
Title: Note 4. Program Costs and Matching Contributions Accounting Policies: The schedule of expenditures of federal awards is prepared on the same basis of accounting as the Agency's financial statements. The Agency uses the accrual basis of accounting. Expenditures represent only the federal funded portions of the program. The Agency's records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: The Agency does not have an indirect cost allocation plan nor does it use the default rate of 10%. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Agency's or locally funded portions, may be more than shown.
Title: Note 5. Relationship to Basic Financial Statements Accounting Policies: The schedule of expenditures of federal awards is prepared on the same basis of accounting as the Agency's financial statements. The Agency uses the accrual basis of accounting. Expenditures represent only the federal funded portions of the program. The Agency's records should be consulted to determine amounts expended or matched from non-federal sources. De Minimis Rate Used: N Rate Explanation: The Agency does not have an indirect cost allocation plan nor does it use the default rate of 10%. Amounts reported in the accompanying Schedule agree with amounts reported in the Agency's basic financial statements. See Note B for summary of the significant accounting policies and the table below for reconciliation of the Schedule to the basic financial statements. 2023 Total Project Expenses per GL/TB $3,205,615 Less: Local Grants and Agency Match Expenses (1,551,306) $1,654,309 Total per Schedule of Expenditure of Federal Awards $1,181,723 Expendiutres of State FInancial Assistance 472,586 $1,654,309

Finding Details

Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.
Finding 2023-001
Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.