FAC Explorer

Audit 55640

FY End
2022-06-30
Total Expended
$4.39M
Findings
4
Programs
14
Organization: Catholic Family and Community Services, Inc. (NJ)
Year: 2022 Accepted: 2023-03-29
Auditor: Robert Valas

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59291 2022-003 Significant Deficiency - I
59292 2022-004 Significant Deficiency - L
635733 2022-003 Significant Deficiency - I
635734 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
64.033 Va Supportive Services for Veteran Families Program $1.95M Yes 2
14.241 Housing Opportunities for Persons with Aids $389,074 - 0
14.231 Emergency Solutions Grant Program $282,488 - 0
10.558 Child and Adult Care Food Program $247,820 - 0
14.218 Community Development Block Grants/entitlement Grants $227,837 - 0
21.023 Emergency Rental Assistance Program $215,106 - 0
84.181 Special Education-Grants for Infants and Families $214,442 - 0
93.914 Hiv Emergency Relief Project Grants $183,612 - 0
93.569 Community Services Block Grant $145,977 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $120,842 - 0
93.558 Temporary Assistance for Needy Families $50,000 - 0
93.994 Maternal and Child Health Services Block Grant to the States $43,726 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $21,921 - 0
93.626 Affordable Care Act State Health Insurance Assistance Program (ship) and Aging and Disability Resource Center (adrc) Options Counseling for Medicare-Medicaid Individuals in States with Approved Financial Alignment Models $2,394 - 0

Contacts

Name Title Type
NZ44FKXQFE76 Mukesh Saxena Auditee
9179570857 Robert Valas Auditor
No contacts on file

Notes to SEFA

Title: SINGLE AUDIT POLICY Accounting Policies: 1.BASIS OF PRESENTATION The information in this schedule is presented in accordance with the audit 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 New Jersey 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the schedules present only a selected portion of the operations of Catholic Family and Community Services, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Catholic Family and Community Services, Inc.. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Federal award program titles are reported as presented in the Catalog of Federal Domestic Assistance (CFDA). The accompanying schedule of expenditures of federal awards and state financial assistance present the Federal and State grant activity for Catholic Family and Community Services, Inc. and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and New Jersey 15-08-OMB, if applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The State of New Jersey requires all organizations that disburse federal grant, state grant or state aid funds to recipients that expend $750,000 or more in federal or state financial assistance within their fiscal year to have annual single audits or program-specific audits performed in accordance with the Uniform Guidance and New Jersey 15-08-OMB.All organizations that disburse federal grant, state grant or state aid funds to recipients that expend less than $750,000 in federal or state financial assistance within their fiscal year, but expend $100,000 or more in state and/or federal financial assistance within their fiscal year must have either a financial statement audit performed in accordance with Government Auditing Standards (Yellow Book) or a program-specific audit performed in accordance the Uniform Guidance and New Jersey 15-08-OMB.

Finding Details

Finding 2022-003
Finding --- The Organization should strengthen internal controls over compliance in order to ensure that records are maintained that adequately detail the history of procurement. Criteria --- Section 200.318 provides general procurement standards consistent with Federal policy under the Uniform Guidance. Similarly, the State of New Jersey contract policy manual by department provides procurement information for funding expended that originated at the state level. Condition --- For all procurement thresholds internal controls over compliance related to documentation and reviews were not maintained. In an instance the sole-source exemption was inappropriately applied. Cause --- A change in upper management at the review level created a gap in internal controls during the year and adequate documentation and reviews over newly procured vendors in some instances were not maintained. In the instance where the sole-source exemption was applied, management provided information that the vendor was selected because all other related parties utilize the same vendor and since the service arrangement would allow synergies between the entities, other vendors were not taken into consideration. Effect --- Following procurement policies ensures that quality items are received at economical pricing. It also prevents fraud, waste, abuse and corruption including vendor kickbacks and reduces the chances of default on contracts. Questioned Costs --- None Recommendation --- Management should implement a checklist that asks if quotes were obtained and evidence retained. Process owners should document the quotes on the checklist, dates quotes were obtained and rational for selection. Approval of the checklist by an authorized reviewer prior to purchase authorization should exist. Views of Responsible Officials --- Governance agrees with the finding and will institute the recommendation(s).
Finding 2022-004
Finding --- Internal controls should be strengthened to ensure proper preparation and reviews of the Schedules of Expenditures of Federal Awards and State Financial Assistance. Criteria --- Management of an entity receiving direct or indirect funding from a federal or state agency is required to prepare accurate and complete Schedules of Expenditures of Federal Awards and State Financial Assistance in accordance with Uniform guidance and New Jersey 15-08-OMB/ the State department?s contract policy manual, respectively. Condition --- Although the Organization prepared the Schedules of Expenditures of Federal Awards and State Financial Assistance, in some instances, the information provided was incomplete or inaccurate. Cause --- A change in upper management at the review level created a gap in internal controls, more specifically, the review of the schedules. Effect --- Improper preparation of the Schedules of Expenditures of Federal Awards and State Financial Assistance can result in incomplete audit coverage. Additionally, omitting grants or otherwise inaccurate reporting of grants reduces financial reporting transparency to government agencies and may be an indication of misappropriation, waste, fraud and/or abuse. Questioned Costs --- None Recommendation --- Management should strengthen controls by providing segregation of duties, in order to ensure reviews over the prepared Schedules of Expenditures of Federal Awards and State Financial Assistance take place. Training and education should exist for all supervisory members handling contracts and their reporting. Views of Responsible Officials --- Governance agrees with the finding and will institute the recommendation(s).
Finding 2022-003
Finding --- The Organization should strengthen internal controls over compliance in order to ensure that records are maintained that adequately detail the history of procurement. Criteria --- Section 200.318 provides general procurement standards consistent with Federal policy under the Uniform Guidance. Similarly, the State of New Jersey contract policy manual by department provides procurement information for funding expended that originated at the state level. Condition --- For all procurement thresholds internal controls over compliance related to documentation and reviews were not maintained. In an instance the sole-source exemption was inappropriately applied. Cause --- A change in upper management at the review level created a gap in internal controls during the year and adequate documentation and reviews over newly procured vendors in some instances were not maintained. In the instance where the sole-source exemption was applied, management provided information that the vendor was selected because all other related parties utilize the same vendor and since the service arrangement would allow synergies between the entities, other vendors were not taken into consideration. Effect --- Following procurement policies ensures that quality items are received at economical pricing. It also prevents fraud, waste, abuse and corruption including vendor kickbacks and reduces the chances of default on contracts. Questioned Costs --- None Recommendation --- Management should implement a checklist that asks if quotes were obtained and evidence retained. Process owners should document the quotes on the checklist, dates quotes were obtained and rational for selection. Approval of the checklist by an authorized reviewer prior to purchase authorization should exist. Views of Responsible Officials --- Governance agrees with the finding and will institute the recommendation(s).
Finding 2022-004
Finding --- Internal controls should be strengthened to ensure proper preparation and reviews of the Schedules of Expenditures of Federal Awards and State Financial Assistance. Criteria --- Management of an entity receiving direct or indirect funding from a federal or state agency is required to prepare accurate and complete Schedules of Expenditures of Federal Awards and State Financial Assistance in accordance with Uniform guidance and New Jersey 15-08-OMB/ the State department?s contract policy manual, respectively. Condition --- Although the Organization prepared the Schedules of Expenditures of Federal Awards and State Financial Assistance, in some instances, the information provided was incomplete or inaccurate. Cause --- A change in upper management at the review level created a gap in internal controls, more specifically, the review of the schedules. Effect --- Improper preparation of the Schedules of Expenditures of Federal Awards and State Financial Assistance can result in incomplete audit coverage. Additionally, omitting grants or otherwise inaccurate reporting of grants reduces financial reporting transparency to government agencies and may be an indication of misappropriation, waste, fraud and/or abuse. Questioned Costs --- None Recommendation --- Management should strengthen controls by providing segregation of duties, in order to ensure reviews over the prepared Schedules of Expenditures of Federal Awards and State Financial Assistance take place. Training and education should exist for all supervisory members handling contracts and their reporting. Views of Responsible Officials --- Governance agrees with the finding and will institute the recommendation(s).