FAC Explorer

Audit 40924

FY End
2022-06-30
Total Expended
$1.40M
Findings
2
Programs
9
Organization: East Newark Borough School District (NJ)
Year: 2022 Accepted: 2023-05-31
Auditor: Wielkotz & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42963 2022-002 Significant Deficiency - B
619405 2022-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $872,155 Yes 1
84.010 Title I Grants to Local Educational Agencies $240,908 - 0
10.555 National School Lunch Program $139,250 - 0
84.027 Special Education_grants to States $74,298 - 0
84.367 Improving Teacher Quality State Grants $29,065 - 0
10.553 School Breakfast Program $28,653 - 0
84.424 Student Support and Academic Enrichment Program $6,481 - 0
84.173 Special Education_preschool Grants $3,760 - 0
10.649 Pandemic Ebt Administrative Costs $1,242 - 0

Contacts

Name Title Type
KHNTC5NE8KB5 Emidio D'andrea Auditee
9734816800 Steven 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 auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Finding 2022-002 Information on the state program: CARES Emergency Relief Grant and American Rescue Plan, CFDA 84.425D/U Grant Period 3/13/20-10/15/22, and 3/13/20-9/30/23. Criteria or specific requirement: The school district must apply the payroll of employees whose salaries are partially or fully funded by the program to the grant budget line throughout the course of the year. Condition: The district charged salaries and wages to the program via a year-end adjustment rather than charging the applicable amounts by pay period. Questioned Costs: None Context: The district did not apply employee salaries to the program budget line(s) throughout the course of the year. Effect: By not applying employee salaries to the program budget line(s) throughout the course of the year, it is not possible to identify the payroll periods being charged to the program and it is not possible to verify the individuals being charged to the program. Cause: The district charged salaries and wages to the program via a year-end adjustment rather than charging the applicable amounts by pay period. Recommendation: The district should apply employee salaries to the grant budget line(s) in conjunction with the employees being compensated through the payroll system for their time and effort contributed to the program. In addition, the district should maintain documentation that shows the distribution of salary and wages charged to grant awards based on actual employee activity as reflected in personnel activity reports, prepared after-the-fact, that include the total activity for which employees were compensated. Management?s response: The district will apply employee salaries to the grant budget line throughout the course of the year.
Finding 2022-002
Finding 2022-002 Information on the state program: CARES Emergency Relief Grant and American Rescue Plan, CFDA 84.425D/U Grant Period 3/13/20-10/15/22, and 3/13/20-9/30/23. Criteria or specific requirement: The school district must apply the payroll of employees whose salaries are partially or fully funded by the program to the grant budget line throughout the course of the year. Condition: The district charged salaries and wages to the program via a year-end adjustment rather than charging the applicable amounts by pay period. Questioned Costs: None Context: The district did not apply employee salaries to the program budget line(s) throughout the course of the year. Effect: By not applying employee salaries to the program budget line(s) throughout the course of the year, it is not possible to identify the payroll periods being charged to the program and it is not possible to verify the individuals being charged to the program. Cause: The district charged salaries and wages to the program via a year-end adjustment rather than charging the applicable amounts by pay period. Recommendation: The district should apply employee salaries to the grant budget line(s) in conjunction with the employees being compensated through the payroll system for their time and effort contributed to the program. In addition, the district should maintain documentation that shows the distribution of salary and wages charged to grant awards based on actual employee activity as reflected in personnel activity reports, prepared after-the-fact, that include the total activity for which employees were compensated. Management?s response: The district will apply employee salaries to the grant budget line throughout the course of the year.