Audit 58601

FY End
2022-06-30
Total Expended
$26.33M
Findings
6
Programs
7
Year: 2022 Accepted: 2023-03-27
Auditor: Kpmg LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
61713 2022-001 Significant Deficiency Yes I
61714 2022-001 Significant Deficiency Yes I
61715 2022-001 Significant Deficiency Yes I
638155 2022-001 Significant Deficiency Yes I
638156 2022-001 Significant Deficiency Yes I
638157 2022-001 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $12.94M - 0
84.063 Federal Pell Grant Program $4.48M - 0
45.310 Grants to States $1.89M Yes 1
84.425 Education Stabilization Fund $1.07M Yes 0
45.312 National Leadership Grants $171,960 - 0
77.008 U.s. Nuclear Regulatory Commission Scholarship and Fellowship Program $132,268 - 0
64.028 Post-9/11 Veterans Educational Assistance $20,320 - 0

Contacts

Name Title Type
G17MHG61WAH1 Christopher Stringer Auditee
6099841110 Jason Spiegel Auditor
No contacts on file

Notes to SEFA

Title: Federal Direct Student Loans Accounting Policies: The accompanying schedules of expenditures of Federal awards include the Federal award activity of Thomas Edison State University and its Affiliate the New Jersey State Library (the Organization) and are presented on the accrual basis of accounting. The information in these schedules 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). Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the 2022 basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loans program and, accordingly, these loans are not included in the Organizations basic financial statements. It is not practical to determine the balance of loans outstanding to students of the Organization under this program as of June 30, 2022.

Finding Details

2022 001 Suspension and Debarment National Foundation on the Arts and the Humanities: Institute of Museum and Library Services: Grants to States (ALN 45.310) Federal Award Numbers and Years: LS-246171-OLS-20 (10/1/19 ? 9/30/2021), LS-246548-OLS-20 (4/21/20 ? 9/30/21), LS-249977-OLS-21 (10/1/20 ? 9/30/22), LS-250226-OLS-21 (4/8/21 ? 9/30/22) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-001 Finding Type: Significant Deficiency and Noncompliance Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Additionally, in accordance with Federal requirements, the Organization shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context The Organization?s policy is to check the suspension and debarment status of each vendor that enters into business with the Organization. The suspension and debarment status is verified before vendors receive any form of payment. During our testwork, we noted that for 7 of the 7 covered transactions selected for testwork, the Organization did not maintain evidence that the vendor was neither suspended nor debarred before entering into the covered transaction. However, our testwork verified that the vendors were not listed on the SAM.gov website as suspended or debarred. The Organization?s policies and procedures to ensure compliance with the above requirements was implemented during fiscal year 2022 to ensure that the documentation was maintained to ensure the suspension and debarment status was validated. However, the issues noted in this finding occurred before the policies and procedures were implemented. Cause The Organization did not have a policy to ensure documentation was maintained to validate that the suspension and debarment status was verified of each eligible vendor prior to entering the covered transaction. Effect There was no audit evidence maintained by the Organization to ensure compliance with the suspension and debarment requirements. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the Organization strengthen its policies and procedures over the suspension and debarment requirements to ensure adequate documentation is maintained for all covered transactions.
2022 001 Suspension and Debarment National Foundation on the Arts and the Humanities: Institute of Museum and Library Services: Grants to States (ALN 45.310) Federal Award Numbers and Years: LS-246171-OLS-20 (10/1/19 ? 9/30/2021), LS-246548-OLS-20 (4/21/20 ? 9/30/21), LS-249977-OLS-21 (10/1/20 ? 9/30/22), LS-250226-OLS-21 (4/8/21 ? 9/30/22) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-001 Finding Type: Significant Deficiency and Noncompliance Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Additionally, in accordance with Federal requirements, the Organization shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context The Organization?s policy is to check the suspension and debarment status of each vendor that enters into business with the Organization. The suspension and debarment status is verified before vendors receive any form of payment. During our testwork, we noted that for 7 of the 7 covered transactions selected for testwork, the Organization did not maintain evidence that the vendor was neither suspended nor debarred before entering into the covered transaction. However, our testwork verified that the vendors were not listed on the SAM.gov website as suspended or debarred. The Organization?s policies and procedures to ensure compliance with the above requirements was implemented during fiscal year 2022 to ensure that the documentation was maintained to ensure the suspension and debarment status was validated. However, the issues noted in this finding occurred before the policies and procedures were implemented. Cause The Organization did not have a policy to ensure documentation was maintained to validate that the suspension and debarment status was verified of each eligible vendor prior to entering the covered transaction. Effect There was no audit evidence maintained by the Organization to ensure compliance with the suspension and debarment requirements. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the Organization strengthen its policies and procedures over the suspension and debarment requirements to ensure adequate documentation is maintained for all covered transactions.
2022 001 Suspension and Debarment National Foundation on the Arts and the Humanities: Institute of Museum and Library Services: Grants to States (ALN 45.310) Federal Award Numbers and Years: LS-246171-OLS-20 (10/1/19 ? 9/30/2021), LS-246548-OLS-20 (4/21/20 ? 9/30/21), LS-249977-OLS-21 (10/1/20 ? 9/30/22), LS-250226-OLS-21 (4/8/21 ? 9/30/22) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-001 Finding Type: Significant Deficiency and Noncompliance Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Additionally, in accordance with Federal requirements, the Organization shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context The Organization?s policy is to check the suspension and debarment status of each vendor that enters into business with the Organization. The suspension and debarment status is verified before vendors receive any form of payment. During our testwork, we noted that for 7 of the 7 covered transactions selected for testwork, the Organization did not maintain evidence that the vendor was neither suspended nor debarred before entering into the covered transaction. However, our testwork verified that the vendors were not listed on the SAM.gov website as suspended or debarred. The Organization?s policies and procedures to ensure compliance with the above requirements was implemented during fiscal year 2022 to ensure that the documentation was maintained to ensure the suspension and debarment status was validated. However, the issues noted in this finding occurred before the policies and procedures were implemented. Cause The Organization did not have a policy to ensure documentation was maintained to validate that the suspension and debarment status was verified of each eligible vendor prior to entering the covered transaction. Effect There was no audit evidence maintained by the Organization to ensure compliance with the suspension and debarment requirements. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the Organization strengthen its policies and procedures over the suspension and debarment requirements to ensure adequate documentation is maintained for all covered transactions.
2022 001 Suspension and Debarment National Foundation on the Arts and the Humanities: Institute of Museum and Library Services: Grants to States (ALN 45.310) Federal Award Numbers and Years: LS-246171-OLS-20 (10/1/19 ? 9/30/2021), LS-246548-OLS-20 (4/21/20 ? 9/30/21), LS-249977-OLS-21 (10/1/20 ? 9/30/22), LS-250226-OLS-21 (4/8/21 ? 9/30/22) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-001 Finding Type: Significant Deficiency and Noncompliance Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Additionally, in accordance with Federal requirements, the Organization shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context The Organization?s policy is to check the suspension and debarment status of each vendor that enters into business with the Organization. The suspension and debarment status is verified before vendors receive any form of payment. During our testwork, we noted that for 7 of the 7 covered transactions selected for testwork, the Organization did not maintain evidence that the vendor was neither suspended nor debarred before entering into the covered transaction. However, our testwork verified that the vendors were not listed on the SAM.gov website as suspended or debarred. The Organization?s policies and procedures to ensure compliance with the above requirements was implemented during fiscal year 2022 to ensure that the documentation was maintained to ensure the suspension and debarment status was validated. However, the issues noted in this finding occurred before the policies and procedures were implemented. Cause The Organization did not have a policy to ensure documentation was maintained to validate that the suspension and debarment status was verified of each eligible vendor prior to entering the covered transaction. Effect There was no audit evidence maintained by the Organization to ensure compliance with the suspension and debarment requirements. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the Organization strengthen its policies and procedures over the suspension and debarment requirements to ensure adequate documentation is maintained for all covered transactions.
2022 001 Suspension and Debarment National Foundation on the Arts and the Humanities: Institute of Museum and Library Services: Grants to States (ALN 45.310) Federal Award Numbers and Years: LS-246171-OLS-20 (10/1/19 ? 9/30/2021), LS-246548-OLS-20 (4/21/20 ? 9/30/21), LS-249977-OLS-21 (10/1/20 ? 9/30/22), LS-250226-OLS-21 (4/8/21 ? 9/30/22) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-001 Finding Type: Significant Deficiency and Noncompliance Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Additionally, in accordance with Federal requirements, the Organization shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context The Organization?s policy is to check the suspension and debarment status of each vendor that enters into business with the Organization. The suspension and debarment status is verified before vendors receive any form of payment. During our testwork, we noted that for 7 of the 7 covered transactions selected for testwork, the Organization did not maintain evidence that the vendor was neither suspended nor debarred before entering into the covered transaction. However, our testwork verified that the vendors were not listed on the SAM.gov website as suspended or debarred. The Organization?s policies and procedures to ensure compliance with the above requirements was implemented during fiscal year 2022 to ensure that the documentation was maintained to ensure the suspension and debarment status was validated. However, the issues noted in this finding occurred before the policies and procedures were implemented. Cause The Organization did not have a policy to ensure documentation was maintained to validate that the suspension and debarment status was verified of each eligible vendor prior to entering the covered transaction. Effect There was no audit evidence maintained by the Organization to ensure compliance with the suspension and debarment requirements. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the Organization strengthen its policies and procedures over the suspension and debarment requirements to ensure adequate documentation is maintained for all covered transactions.
2022 001 Suspension and Debarment National Foundation on the Arts and the Humanities: Institute of Museum and Library Services: Grants to States (ALN 45.310) Federal Award Numbers and Years: LS-246171-OLS-20 (10/1/19 ? 9/30/2021), LS-246548-OLS-20 (4/21/20 ? 9/30/21), LS-249977-OLS-21 (10/1/20 ? 9/30/22), LS-250226-OLS-21 (4/8/21 ? 9/30/22) Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Prior Year Finding: 2021-001 Finding Type: Significant Deficiency and Noncompliance Criteria Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a non-procurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215. Additionally, in accordance with Federal requirements, the Organization shall maintain internal controls over Federal programs designed to provide reasonable assurance that transactions are executed in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award that could have a direct and material effect on a Federal program. Condition and Context The Organization?s policy is to check the suspension and debarment status of each vendor that enters into business with the Organization. The suspension and debarment status is verified before vendors receive any form of payment. During our testwork, we noted that for 7 of the 7 covered transactions selected for testwork, the Organization did not maintain evidence that the vendor was neither suspended nor debarred before entering into the covered transaction. However, our testwork verified that the vendors were not listed on the SAM.gov website as suspended or debarred. The Organization?s policies and procedures to ensure compliance with the above requirements was implemented during fiscal year 2022 to ensure that the documentation was maintained to ensure the suspension and debarment status was validated. However, the issues noted in this finding occurred before the policies and procedures were implemented. Cause The Organization did not have a policy to ensure documentation was maintained to validate that the suspension and debarment status was verified of each eligible vendor prior to entering the covered transaction. Effect There was no audit evidence maintained by the Organization to ensure compliance with the suspension and debarment requirements. Questioned Costs There are no known questioned costs related to this finding. Recommendation We recommend that the Organization strengthen its policies and procedures over the suspension and debarment requirements to ensure adequate documentation is maintained for all covered transactions.