Finding 1140339 (2023-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-06-04

AI Summary

  • Core Issue: Financial reporting was delayed due to incomplete reconciliations and year-end processes.
  • Impacted Requirements: Timeliness and accuracy of financial reporting, including the annual audit and required filings.
  • Recommended Follow-Up: Review the general ledger system, ensure timely recording of transactions, and hire a qualified accounting professional.

Finding Text

Criteria Management is responsible for timely and accurate financial reporting. Condition Various reconciliations, adjustments and year-end close procedures were not completed in a timely and accurate manner which resulted in delay of completion of the annual audit for the 2023 audit period and untimely filing of the required single audit data collection form. Cause Turnover in key finance staff and management positions occurred at year end impacting the year-end reconciliation and close processes. Effect Delays in completing various reconciliations, year-end close process, and audit submissions to the State of New Jersey and federal audit clearinghouse. Preliminary account balances were also materially misstated requiring multiple audit adjustments. Recommendation We recommend that the Agency review its general ledger system to determine if a system exists that is more aligned with the Agency’s basis of accounting and accounting needs. Additionally, we recommend that all activity, journal entries, and any correcting adjustments be recorded to the general ledger using the accrual basis at the time of the transaction, which will allow for a timely completion of reconciliations and the year-end close process. We also recommend that the Agency look to hire a qualified accounting professional that can keep the books and records up to date on a monthly basis. Management’s Response Management has reviewed the finding above and will complete a corrective action plan within 45 days of the report.

Categories

Reporting

Other Findings in this Audit

  • 563891 2023-001
    Material Weakness
  • 563892 2023-001
    Material Weakness
  • 563893 2023-001
    Material Weakness
  • 563894 2023-001
    Material Weakness
  • 563895 2023-001
    Material Weakness
  • 563896 2023-001
    Material Weakness
  • 563897 2023-001
    Material Weakness
  • 563898 2023-001
    Material Weakness
  • 563899 2023-001
    Material Weakness
  • 563900 2023-001
    Material Weakness
  • 1140333 2023-001
    Material Weakness
  • 1140334 2023-001
    Material Weakness
  • 1140335 2023-001
    Material Weakness
  • 1140336 2023-001
    Material Weakness
  • 1140337 2023-001
    Material Weakness
  • 1140338 2023-001
    Material Weakness
  • 1140340 2023-001
    Material Weakness
  • 1140341 2023-001
    Material Weakness
  • 1140342 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.818 Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements $210,197
21.027 Coronavirus State and Local Fiscal Recovery Funds $186,801