Audit 359090

FY End
2022-12-31
Total Expended
$22.56M
Findings
12
Programs
27
Organization: City of Paterson (NJ)
Year: 2022 Accepted: 2025-06-17

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
565174 2022-010 Material Weakness - BL
565175 2022-011 Material Weakness - L
565176 2022-008 Material Weakness - BL
565177 2022-009 Material Weakness - AB
565178 2022-007 Material Weakness - BL
565179 2022-012 Material Weakness - BL
1141616 2022-010 Material Weakness - BL
1141617 2022-011 Material Weakness - L
1141618 2022-008 Material Weakness - BL
1141619 2022-009 Material Weakness - AB
1141620 2022-007 Material Weakness - BL
1141621 2022-012 Material Weakness - BL

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $4.62M - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.40M Yes 1
93.914 Hiv Emergency Relief Project Grants $3.91M - 0
14.231 Emergency Solutions Grant Program $1.77M Yes 1
14.239 Home Investment Partnerships Program $1.64M Yes 0
16.710 Public Safety Partnership and Community Policing Grants $928,527 Yes 0
93.137 Community Programs to Improve Minority Health $891,839 Yes 2
14.905 Lead Hazard Reduction Demonstration Grant Program $711,306 - 0
93.917 Hiv Care Formula Grants $620,462 - 0
93.994 Maternal and Child Health Services Block Grant to the States $533,310 Yes 2
15.954 National Park Service Conservation, Protection, Outreach, and Education $416,915 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $397,584 - 0
14.241 Housing Opportunities for Persons with Aids $341,908 - 0
93.558 Temporary Assistance for Needy Families $261,039 - 0
16.582 Crime Victim Assistance/discretionary Grants $218,956 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $121,202 - 0
93.069 Public Health Emergency Preparedness $119,885 - 0
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $113,001 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $93,498 - 0
20.614 National Highway Traffic Safety Administration (nhtsa) Discretionary Safety Grants and Cooperative Agreements $42,951 - 0
17.258 Wioa Adult Program $28,748 - 0
10.935 Urban Agriculture and Innovative Production $19,000 - 0
97.025 National Urban Search and Rescue (us&r) Response System $11,712 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $10,420 - 0
14.703 Sustainable Communities Regional Planning Grant Program $5,409 - 0
20.606 National Driver Register $4,565 - 0
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $2,277 - 0

Contacts

Name Title Type
NGTUTFGUHUN3 Javier Silva Auditee
9733211304 Daniel Wielkotz Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedules of expenditures of Federal Awards 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. 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 N.J. 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.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. The special revenue fund is presented in the accompanying schedules on the grant accounting budgetary basis which recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not. De Minimis Rate Used: N Rate Explanation: The City has elected to not use the 10 percent de minimis indirect cost rate

Finding Details

Finding 2022-010 Information on the federal program: Maternal & Child Health Services Block Grant- Childhood Lead Poisoning Control Program, Assistance Listing #93 .994 Criteria or specific requirement: The City must retain all expenditure records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available to verify payroll costs. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the Childhood Lead Poisoning Control Program requirements. Recommendation: A process should be developed and implemented to ensure records are properly maintained. Management's response: Procedures are to be implemented to ensure records are properly retained for a minimum period of three years.
Finding 2022-011 Information on the federal program: Maternal & Child Health Services Block Grant- Childhood Lead Poisoning Control Program, Assistance Listing #93.994 Criteria or specific requirement: The City must submit quarterly financial reports and maintain sufficient supporting documentation required for approval of reimbursement. Condition: Quarterly reports provided did not agree to supporting documentation. Questioned costs: Unable to be determined. Context: Quarterly reports provided did not contain approving signatures. Supporting documentation did not agree to the quarterly reports provided. Effect: Without authorizing signatures, unallowable costs can be reported on the SAGE Reports submitted to the State. Cause: Lack of supporting documentation and supervising duties can lead to improper maintenance of records. Recommendation: The City must adhere to all reporting requirements, including providing sufficient expenditure support and proper approval of reports. Management's response: Procedures are to be implemented to ensure reports are properly handled and approved.
Finding 2022-008 Information on the federal program: Community Program to Improve Minority Health, Assistance Listing #93.137 Criteria or specific requirement: The City must retain all expenditure records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available for review. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the Community Program to Improve Minority Health requirements. Recommendation: A process should be developed and implemented to ensure records are properly maintained. Management's response: Procedures are to be implemented to ensure records are properly retained for a minimum period of three years.
Finding 2022-009 Community Program to Improve Minority Health, Assistance Listing #93 .13 7 Information on the federal program: Expenditures made by the City must be authorized by the CFO prior to purchase, ensuring that purchases are eligible under the grant award. Condition: The City's current procedures for authorizing purchases under the Community Program to Improve Minority Health Program are not functioning as intended. Questioned Costs: Unable to be detennined. Context: The City has authorized a purchase that does not meet the eligibility criteria outlined in the grant agreement. Effect: Failure to perform adequate fiscal control procedures resulted in non-compliance with the specific program requirements in accordance with the grant agreement. Cause: The City lacks a system in place to ensure that purchases and authorizations comply with the Community Program to Improve Minority Health Program requirements. Recommendation: A process will be developed and implemented to ensure proper authorization is obtained prior to the expenditure of grant funds. Management's response: Procedures are to be implemented to ensure proper authorization is obtained prior to expenditure of grant funds.
Information on the federal program: American Rescue Plan, Assistance Listing #21.027 Criteria or specific requirement: The City must retain all expenditure records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available for review. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the American Rescue Plan requirements. Recommendation: A process should be developed and implemented to ensure records are properly maintained. Management's response: Procedures are to be implemented to ensure records are properly retained for a minimum period of three years.
Finding 2022-012 Information on the federal program: Emergency Solutions Grant, Assistance Listing #14.231 Criteria or specific requirement: The City must retain all payroll records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available to verify payroll costs. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the Emergency Solutions grant requirements. Recommendation: A process to be developed and implemented to ensure records are properly maintained and in compliance with the federal grant guidance.
Finding 2022-010 Information on the federal program: Maternal & Child Health Services Block Grant- Childhood Lead Poisoning Control Program, Assistance Listing #93 .994 Criteria or specific requirement: The City must retain all expenditure records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available to verify payroll costs. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the Childhood Lead Poisoning Control Program requirements. Recommendation: A process should be developed and implemented to ensure records are properly maintained. Management's response: Procedures are to be implemented to ensure records are properly retained for a minimum period of three years.
Finding 2022-011 Information on the federal program: Maternal & Child Health Services Block Grant- Childhood Lead Poisoning Control Program, Assistance Listing #93.994 Criteria or specific requirement: The City must submit quarterly financial reports and maintain sufficient supporting documentation required for approval of reimbursement. Condition: Quarterly reports provided did not agree to supporting documentation. Questioned costs: Unable to be determined. Context: Quarterly reports provided did not contain approving signatures. Supporting documentation did not agree to the quarterly reports provided. Effect: Without authorizing signatures, unallowable costs can be reported on the SAGE Reports submitted to the State. Cause: Lack of supporting documentation and supervising duties can lead to improper maintenance of records. Recommendation: The City must adhere to all reporting requirements, including providing sufficient expenditure support and proper approval of reports. Management's response: Procedures are to be implemented to ensure reports are properly handled and approved.
Finding 2022-008 Information on the federal program: Community Program to Improve Minority Health, Assistance Listing #93.137 Criteria or specific requirement: The City must retain all expenditure records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available for review. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the Community Program to Improve Minority Health requirements. Recommendation: A process should be developed and implemented to ensure records are properly maintained. Management's response: Procedures are to be implemented to ensure records are properly retained for a minimum period of three years.
Finding 2022-009 Community Program to Improve Minority Health, Assistance Listing #93 .13 7 Information on the federal program: Expenditures made by the City must be authorized by the CFO prior to purchase, ensuring that purchases are eligible under the grant award. Condition: The City's current procedures for authorizing purchases under the Community Program to Improve Minority Health Program are not functioning as intended. Questioned Costs: Unable to be detennined. Context: The City has authorized a purchase that does not meet the eligibility criteria outlined in the grant agreement. Effect: Failure to perform adequate fiscal control procedures resulted in non-compliance with the specific program requirements in accordance with the grant agreement. Cause: The City lacks a system in place to ensure that purchases and authorizations comply with the Community Program to Improve Minority Health Program requirements. Recommendation: A process will be developed and implemented to ensure proper authorization is obtained prior to the expenditure of grant funds. Management's response: Procedures are to be implemented to ensure proper authorization is obtained prior to expenditure of grant funds.
Information on the federal program: American Rescue Plan, Assistance Listing #21.027 Criteria or specific requirement: The City must retain all expenditure records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available for review. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the American Rescue Plan requirements. Recommendation: A process should be developed and implemented to ensure records are properly maintained. Management's response: Procedures are to be implemented to ensure records are properly retained for a minimum period of three years.
Finding 2022-012 Information on the federal program: Emergency Solutions Grant, Assistance Listing #14.231 Criteria or specific requirement: The City must retain all payroll records for a minimum of three years, as maintained by the Department Head and/or Grant Supervisor. Condition: Several payroll files selected for audit were not available to verify payroll costs. Questioned costs: Unable to be determined. Context: The City issued reimbursement of payroll expenses in which backup documentation was not available to support the claims. Effect: Without proper documentation, there is a risk that grant funds could be used for ineligible employees or activities. Cause: The City lacks a system to ensure that records related to purchases and authorizations are maintained in accordance with the Emergency Solutions grant requirements. Recommendation: A process to be developed and implemented to ensure records are properly maintained and in compliance with the federal grant guidance.