Finding 1218722 (2023-009)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2026-06-25
Audit: 404776
Organization: City of Paterson (NJ)

AI Summary

  • Core Issue: The City’s purchase authorization process for the Community Program to Improve Minority Health is not working properly.
  • Impacted Requirements: Purchases made must be eligible under the grant agreement, but current practices have led to non-compliance.
  • Recommended Follow-Up: Develop and implement a new process to ensure all purchases receive proper authorization before using grant funds.

Finding Text

Community Program to Improve Minority Health, Assistance Listing #93 .13 7 Information on the federal program: Expenditures made by the City must be authorized by the CFO prior to purchase, ensuring that purchases are eligible under the grant award. Condition: The City's current procedures for authorizing purchases under the Community Program to Improve Minority Health Program are not functioning as intended. Questioned Costs: Unable to be detennined. Context: The City has authorized a purchase that does not meet the eligibility criteria outlined in the grant agreement. Effect: Failure to perform adequate fiscal control procedures resulted in non-compliance with the specific program requirements in accordance with the grant agreement. Cause: The City lacks a system in place to ensure that purchases and authorizations comply with the Community Program to Improve Minority Health Program requirements. Recommendation: A process will be developed and implemented to ensure proper authorization is obtained prior to the expenditure of grant funds. Management's response: Procedures are to be implemented to ensure proper authorization is obtained prior to expenditure of grant funds.

Corrective Action Plan

Developed and implemented a standardized procedures for documenting and retaining support for all grant activity. Reveiwed all grant paperword, reconciled with supportive documentation

Categories

Procurement, Suspension & Debarment Eligibility

Other Findings in this Audit

  • 1218717 2023-012
    Material Weakness Repeat
  • 1218718 2023-010
    Material Weakness Repeat
  • 1218719 2023-011
    Material Weakness Repeat
  • 1218720 2023-007
    Material Weakness Repeat
  • 1218721 2023-008
    Material Weakness Repeat
  • 1218723 2023-006
    Material Weakness Repeat
  • 1218724 2023-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $3.59M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3.42M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $2.92M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $1.48M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.29M
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $1.28M
14.905 LEAD HAZARD REDUCTION DEMONSTRATION GRANT PROGRAM $1.17M
93.137 COMMUNITY PROGRAMS TO IMPROVE MINORITY HEALTH $1.10M
15.954 NATIONAL PARK SERVICE CONSERVATION, PROTECTION, OUTREACH, AND EDUCATION $1.01M
93.917 HIV CARE FORMULA GRANTS $827,624
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $555,399
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $449,365
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $394,682
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND SUBSTANCE USE PROGRAM $327,511
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $292,880
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $257,452
66.458 CLEAN WATER STATE REVOLVING FUND $199,147
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $161,884
16.582 CRIME VICTIM ASSISTANCE/DISCRETIONARY GRANTS $133,522
16.034 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM $70,451
97.025 NATIONAL URBAN SEARCH AND RESCUE (US&R) RESPONSE SYSTEM $31,176
10.935 URBAN AGRICULTURE AND INNOVATIVE PRODUCTION GRANTS PROGRAM (UAIP) $22,000
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $10,924
10.576 SENIOR FARMERS MARKET NUTRITION PROGRAM $9,109