Audit 56481

2022-003 Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: The Sustain and Serve Agreement requires funds to be spent at ?Eligible Restaurants?. Eligible Restaurants are approved by the awarding agency. Condition: The Foundation requested and received reimbursement for payments made to an ineligible restaurant. Effect: Costs to ineligible restaurant are unallowable. Questioned Cost: Cost of $12,850 were paid to the ineligible restaurant. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population totaling $1,064,742. The finding relates to one ineligible restaurant noted in our population. Our sample was a statistically valid sample. Recommendation: The Foundation should implement procedures to verify that all restaurants requesting reimbursement be verified as "Eligible Restaurants". View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.

Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: Grantees are required to establish internal controls over compliance that ensure reimbursement is requested for individual invoices and prevent duplicate invoices from entering the system. Condition: The Foundation requested and received reimbursement using duplicate invoices on three occasions. Cause: The duplicate invoices were not detected during the reimbursement request process. Effect: The Foundation was paid for costs that were not incurred. Questioned costs: Unallowable costs of $12,590 were reimbursed to the Foundation. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population of $1,064,742. Our sample was a statistically valid sample. Recommendation: The Foundation should establish processes and controls to ensure duplicate invoices are not processed for reimbursement. View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.

Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: The Sustain and Serve Agreement allows a maximum of $10 per meal. Condition: The Foundation requested and received reimbursement for meals in excess of $10 per meal. Cause: The Foundation failed to recalculate the cost per meal before requesting reimbursement. Effect: Reimbursement in excess of $10 is an unallowed cost. Questioned costs: Unallowable costs of $16,540 were reimbursed to the Foundation. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population of $1,064,742. Our sample was a statistically valid sample. Recommendation: The Foundation should establish processes and controls to ensure cost per meals do not exceed the allowable rate of $10 per meal. View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.

2022-003 Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: The Sustain and Serve Agreement requires funds to be spent at ?Eligible Restaurants?. Eligible Restaurants are approved by the awarding agency. Condition: The Foundation requested and received reimbursement for payments made to an ineligible restaurant. Effect: Costs to ineligible restaurant are unallowable. Questioned Cost: Cost of $12,850 were paid to the ineligible restaurant. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population totaling $1,064,742. The finding relates to one ineligible restaurant noted in our population. Our sample was a statistically valid sample. Recommendation: The Foundation should implement procedures to verify that all restaurants requesting reimbursement be verified as "Eligible Restaurants". View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.

Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: Grantees are required to establish internal controls over compliance that ensure reimbursement is requested for individual invoices and prevent duplicate invoices from entering the system. Condition: The Foundation requested and received reimbursement using duplicate invoices on three occasions. Cause: The duplicate invoices were not detected during the reimbursement request process. Effect: The Foundation was paid for costs that were not incurred. Questioned costs: Unallowable costs of $12,590 were reimbursed to the Foundation. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population of $1,064,742. Our sample was a statistically valid sample. Recommendation: The Foundation should establish processes and controls to ensure duplicate invoices are not processed for reimbursement. View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.

Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: The Sustain and Serve Agreement allows a maximum of $10 per meal. Condition: The Foundation requested and received reimbursement for meals in excess of $10 per meal. Cause: The Foundation failed to recalculate the cost per meal before requesting reimbursement. Effect: Reimbursement in excess of $10 is an unallowed cost. Questioned costs: Unallowable costs of $16,540 were reimbursed to the Foundation. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population of $1,064,742. Our sample was a statistically valid sample. Recommendation: The Foundation should establish processes and controls to ensure cost per meals do not exceed the allowable rate of $10 per meal. View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.