Finding 1101073 (2023-001)

-
Requirement
ABL
Questioned Costs
$1
Year
2023
Accepted
2025-02-27
Audit: 344064
Organization: Town of Kearny (NJ)

AI Summary

  • Core Issue: Project worksheets were missing, preventing verification of $1,707,074 in FEMA reimbursements.
  • Impacted Requirements: All claimed costs must be documented and tied to eligible work, per FEMA guidelines.
  • Recommended Follow-Up: Ensure project worksheets are maintained and submitted to support reimbursement claims.

Finding Text

Finding 2023-001 Information on the Federal Program: Disaster Grants – Public Assistance (FEMA Reimbursements), CFDA number 97.036, Grant period January 1, 2020 through December 31, 2023. Criteria or specific requirement: FEMA evaluates the eligibility of all costs claimed by the applicant. Costs must be directly tied to the performance of eligible work; adequately documented; reduced by all applicable credits such as insurance proceeds and salvage values; authorized and not prohibited under federal, state, or local government laws or regulations; consistent with applicant’s internal policies, regulations, and procedures that apply uniformly to both federal awards and other activities of the applicant; necessary and reasonable to accomplish the work properly and efficiently. Condition: Project worksheets were not provided for review; thus, expenses submitted for reimbursement could not be verified. Questioned Costs: $1,707,074 of reimbursements could not be verified. Context: Expenses submitted for reimbursement could not be determined or verified as allowable. Effect: Amounts reimbursed by FEMA could not be verified to actual expenditures. Cause: Project worksheets were not provided for review; thus, expenses submitted for reimbursement could not be verified. Recommendation: Project worksheets should be maintained to support amounts submitted for reimbursement. Management Response: The Town will provide project worksheets and supporting documentation for all amounts submitted to FEMA for reimbursement

Categories

Questioned Costs Cash Management Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
11.300 Investments for Public Works and Economic Development Facilities $2.14M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.71M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.61M
14.218 Community Development Block Grants/entitlement Grants $213,898
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $163,801
93.276 Drug-Free Communities Support Program Grants $116,553
93.667 Social Services Block Grant $71,471
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $66,966
97.044 Assistance to Firefighters Grant $16,916
97.056 Port Security Grant Program $15,223
20.616 National Priority Safety Programs $11,480
16.607 Bulletproof Vest Partnership Program $9,244
97.042 Emergency Management Performance Grants $5,317
16.922 Equitable Sharing Program $2,689