Finding Text
FINDING NO. 2022-03 – Maintenance of Expenditures Supporting Documentation
Type of Finding:
Material Weakness in Internal Control over Major Programs
Federal Agency: U.S. Department of Health and Human Services
Assistance Listing Number: 93.569
Pass-Through Agency: New Jersey Department of Community Affairs
Program Titles: Community Services Block Grant (CSBG) and Community Services Block Grant (CSBG) – COVID 19 CARES Act CSBG ND 2020
Pass-Through Number(s): 2022-05235-0198-03, 2020-05205- 0330-01
Criteria: Expenditures of any nature should be supported by invoices or receipts that pertain to each grant.
Statement of Condition: During our testing of expenditures associated with both the CSBG and CSBG COVID-19 CARES Act grants it was noted that there was no support for various expenditures submitted for reimbursement, see questioned costs for the specific grant and amounts.
Cause: Lack of internal controls lead to the incorrect information being submitted.
Effect: This might result in the cognizant agency disallowing the expenses with no supporting documentation and asking for a return of disallowed funds.
Questioned Costs: $126,955, the details are as follows:
• COVID19 CARES Act FSR#8/9 (Missing support for $40,000)
• 2022 CSBG FSR#3/9 (Missing support due to duplication of expenditures submitted for reimbursements of $86,955)
Repeat Finding: 2021-002
Recommendation: The Organization should adopt formal written procedures for expenditures. These procedures should require that all invoices, receipts, and payroll registers be kept and maintained for audit trail and reviewed and approved by an appropriate level of management.
Views of Responsible Officials: The Organization concurs with the finding and is in the process of improving the Organization's internal controls including monthly closing procedures, record retention procedures and oversight to prevent the submission of incorrect information in the future. The 2022 CSBG was extended to July 29, 2023 and expenditures were submitted to support the $86,955 prior to that date.