Finding Text
Questioned costs: $0 Context: As of June 30, 2022, the Organization had amounts due from a related party totaling $75,000. Condition: The Organization has an outstanding receivable from a related party, which was funded through surplus funds from the Early Intervention Program in prior years. Criteria: The U.S. Department of Health and Human Services and the N.J. Department of Health and Senior Services require that surplus funds provided by the Early Intervention Program shall only be utilized for that program. Cause: Early Intervention Program surplus funds were advanced to a related party. Effect: The Organization utilized the surplus funds received for the Early Intervention Program from the U.S. Department of Health and Human Services and the N.J. Department of Health and Senior Services for purposes other than the Early Intervention Program. Recommendation: Management should implement policies and procedures to ensure that all federal and state funding received for the Early Intervention Program should only be used for that program as indicated in the related agreements.