Audit 395564

Federal and State Agency: Division of Family Health Services Federal and State Program Name: Early Intervention Services Federal and State Award Identification Number and Year: 84.181A DFHS25EIS012; DFHS26EIS011 Pass-Through Agency: NJ Department of Health Award Period: July 1, 2024 through June 30, 2025, July 1, 2025 through June 30, 2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Guidance and New Jersey Office of Management and Budget Circular Letter 25-12 require compliance with the provisions of allowable costs with respect to grant expenditures. Condition: Auditor noted while testing period of performance, 1 of the 10 expenses recorded in June 2025 pertained to subsequent months outside of the contract period. Questioned costs: $12.95 Cause: The Organization noted that this finding came about due to a clerical error. The bookkeeper inadvertently recorded a July invoice on June 30th and this led to an incorrect charge to the grant period ending June 30th. Effect: One expense was included in the expenditure report under the incorrect grant period ending June 30, 2025. Repeat Finding: No Recommendation: Auditor recommends management continue to perform a second review on the grant submission especially towards the end of the grant period. View of responsible officials: There is no disagreement with the audit finding and a corrective action plan is implemented immediately as follows: Organization Name: DAWN Center for Independent Living Finding Reference: 2025-001 Responsible Executive: CEO – Carmela Slivinski Implementation Status: Effective Immediately Full Implementation Date: No later than June 30, 2026 Finding - Compliance (Period of Performance) Significant Deficiency Condition: Auditor noted while testing period of performance, 1 of the 10 expenses recorded in June 2025 pertained to subsequent months outside of the contract period. Effect: One expense was included in the expenditure report under the incorrect grant period ending June 30, 2025. Cause: The Organization noted that this finding came about due to a clerical error. The bookkeeper inadvertently recorded a July invoice on June 30th and this led to an incorrect charge to the grant period ending June 30th. Recommendation: Auditor recommends management continue to perform a second review on the grant submission especially towards the end of the grant period. Management’s Response: Management concurs with the finding regarding deficiencies in grant period-of-performance compliance. Corrective Action Plan - Review existing Accounts Payable and Accounting Controls processes and revise as needed to ensure expenses are recorded as required. - Staff Training and Competency Development conducted annually to review accounting controls and ensure accounting personnel understand period of performance grant compliance requirements. - Ongoing Monitoring and Internal Compliance Review conducted periodically to ensure oversight of financial controls and grant compliance.