FAC Explorer

Finding 16088 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-10-30
Audit: 19589
Organization: Southern New Jersey Regional Early Intervention Collaborative, Inc. (NJ)
Auditor: Withum Smith+brown PC

AI Summary

  • Core Issue: There was a significant deficiency in payroll controls, leading to an employee being paid incorrectly.
  • Impacted Requirements: Compliance with 2 CFR 220 regarding allowable costs and reasonable expenses for federal grants was not met.
  • Recommended Follow-Up: Review and strengthen payroll procedures to ensure accurate pay rates for all employees.

Finding Text

Finding Number 2022-001 CFDA Number 84.181A Program Name Early Intervention Program Federal Agency Department of Education Federal Award ID DFHS22SCH005 Federal Award Year 2022 Finding Type Significant Deficiency Compliance Requirement Allowable Costs Pass-Through Entity State of New Jersey, Department of Health Questioned Costs $0 Southern New Jersey Regional Early Intervention Collaborative, Inc. had internal controls over compliance issues related to payroll. Condition According to 2 Code of Federal Regulation (CFR) 220 (2 CFR 220), Appendix A, Section C to be allowable for a federal grant, a cost must be allocable to the federal award and be necessary and reasonable for the administration and performance of the award. Furthermore, Section C 3 provides that a reasonable cost is one that a ?prudent person? would have incurred under similar circumstances. For one individual out of 16 employees tested, review procedures did not identify incorrect pay rate. As a result, the individual was paid incorrectly throughout the period.

Corrective Action Plan

Southern New Jersey Regional Early Intervention Collaborative, Inc. has drafted a new policy and procedure ?new employee payroll processing?. The new policy ensures that there is a uniform mechanism for documenting, recording, and verifying all necessary employee information that is required to accurately enroll employees into the Asure payroll system. Employee who was underpaid was owed an additional $6.92 for each pay, for a total of 6 pay periods. The retro check was issued with the 9/16/2022 payroll. Jennifer Buzby, Executive Director will be responsible for the implementation of the corrective action plan

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 592530 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.181 Special Education-Grants for Infants and Families $1.01M