FAC Explorer

Audit 358691

FY End
2024-06-30
Total Expended
$23.90M
Findings
2
Programs
13
Organization: City of Elizabeth (NJ)
Year: 2024 Accepted: 2025-06-12
Auditor: Louis C Mai CPA & Associates

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564565 2024-001 Material Weakness Yes L
1141007 2024-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $14.93M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.94M Yes 0
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $1.95M Yes 0
14.239 Home Investment Partnerships Program $1.39M Yes 0
14.218 Community Development Block Grants/entitlement Grants $758,918 Yes 0
16.922 Equitable Sharing Program $540,937 - 0
14.241 Housing Opportunities for Persons with Aids $466,795 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $185,413 - 0
10.559 Summer Food Service Program for Children $180,575 - 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $158,165 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $109,444 - 0
20.216 Highway Educational Grants $10,500 - 0
93.268 Immunization Cooperative Agreements $4,021 - 0

Contacts

Name Title Type
KSNJH1KTZC77 Anthony Zengaro Auditee
9088204097 Louis C Mai Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedules of expenditures of awards are presented using the budgetary basis of accounting. The basis of accounting is described in Note 1 to the City's financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and does not charge indirect costs to the Federal awards. The accompanying schedules of expenditures of Federal and State of New Jersey awards present the activity of Federal and State awards programs of the City of Elizabeth. The City is defined in Note 1 to the City’s financial statements. Federal awards received directly from Federal agencies, as well as Federal awards passed through other government agencies are included on the schedule of expenditures of Federal awards.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedules of expenditures of awards are presented using the budgetary basis of accounting. The basis of accounting is described in Note 1 to the City's financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and does not charge indirect costs to the Federal awards. The accompanying schedules of expenditures of awards are presented using the budgetary basis of accounting. The basis of accounting is described in Note 1 to the City's financial statements.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedules of expenditures of awards are presented using the budgetary basis of accounting. The basis of accounting is described in Note 1 to the City's financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and does not charge indirect costs to the Federal awards. The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and does not charge indirect costs to the Federal awards.
Title: Relationship to General Purpose Financial Statements Accounting Policies: The accompanying schedules of expenditures of awards are presented using the budgetary basis of accounting. The basis of accounting is described in Note 1 to the City's financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and does not charge indirect costs to the Federal awards. Amount reported in the accompanying schedule agrees with or is reconcilable to amount reported in the City's financial statements. Expenditures of awards are reported in the City's financial statements as follows: Federal State Current/Grant Fund $21,207,685 $4,115,421 Capital Fund ⸺ 248,629 Trust Funds 2,689,847 ⸺ $23,897,532 $4,365,050
Title: Relationship to Federal Financial Reports Accounting Policies: The accompanying schedules of expenditures of awards are presented using the budgetary basis of accounting. The basis of accounting is described in Note 1 to the City's financial statements. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance and does not charge indirect costs to the Federal awards. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal funancial reports do not necessarily agree with the amounts reported in the accompanying Schedule which is prepared on the cash basis.

Finding Details

Finding 2024-001
Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The City of Elizabeth (the City) must submit quarterly Project and Expenditure Reports that contain costs incurred during the covered period. Critical information includes, in part: Obligations and Expenditures: • Cumulative obligation • Current period expenditure Condition:Current obligation and expenditure information was not reported in accordance with governing requirements. Cause:The City did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect:Inaccurate information was reported to the federal awarding agency. Questioned Cost: None Context/Sampling: A nonstatistical sample of one out of a population of four Project and Expenditure Reports submitted during the year was selected for testing. The City reported current obligations for the amount the City budgeted, rather than the obligations (i.e., contracts/purchase orders) that were entered into during the reported period. The City reported current expenditure for one project as the budgeted amount, did not record current expenditures on another project and recorded expenditures on a project that did not have expenditures. The City reported three subrecipients and subawards. The City did not enter into an subrecipient or subaward agreements. The impact is as follows: Period ended June 30, 2024 Originally Reported Actual Water 1 Cumulative Obligations $17,000,000 $19,646,341 Current Pd Obligations ⸺ $1,494,959 GS-B (Fire Dept Repairs) Total Cumulative Exp $877,164 $840,970 Current Obligations $27,207 ⸺ Sewer 1 (Atlantic) Total Cumulative Exp $1,380,982 ⸺ Prior Year: Repeated Recommendation:We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Client Reponse: The City recognizes the importance of internal controls and plans to enhance its procedures to ensure Project and Expenditure quarterly reports are prepared in accordance with governing requirements. An ARP consultant was engaged to ensure ARP reporting compliance. All subsequent reports to 2024 fiscal year are in compliance with ARP requirements.
Finding 2024-001
Criteria: The OMB Compliance Supplement requires that reports submitted to the federal awarding agency include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. The City of Elizabeth (the City) must submit quarterly Project and Expenditure Reports that contain costs incurred during the covered period. Critical information includes, in part: Obligations and Expenditures: • Cumulative obligation • Current period expenditure Condition:Current obligation and expenditure information was not reported in accordance with governing requirements. Cause:The City did not have adequate internal controls to ensure Project and Expenditure Reports were prepared in accordance with governing requirements. Effect:Inaccurate information was reported to the federal awarding agency. Questioned Cost: None Context/Sampling: A nonstatistical sample of one out of a population of four Project and Expenditure Reports submitted during the year was selected for testing. The City reported current obligations for the amount the City budgeted, rather than the obligations (i.e., contracts/purchase orders) that were entered into during the reported period. The City reported current expenditure for one project as the budgeted amount, did not record current expenditures on another project and recorded expenditures on a project that did not have expenditures. The City reported three subrecipients and subawards. The City did not enter into an subrecipient or subaward agreements. The impact is as follows: Period ended June 30, 2024 Originally Reported Actual Water 1 Cumulative Obligations $17,000,000 $19,646,341 Current Pd Obligations ⸺ $1,494,959 GS-B (Fire Dept Repairs) Total Cumulative Exp $877,164 $840,970 Current Obligations $27,207 ⸺ Sewer 1 (Atlantic) Total Cumulative Exp $1,380,982 ⸺ Prior Year: Repeated Recommendation:We recommend the City enhance internal controls to ensure Project and Expenditure Reports are prepared in accordance with governing requirements. Client Reponse: The City recognizes the importance of internal controls and plans to enhance its procedures to ensure Project and Expenditure quarterly reports are prepared in accordance with governing requirements. An ARP consultant was engaged to ensure ARP reporting compliance. All subsequent reports to 2024 fiscal year are in compliance with ARP requirements.