Finding Text
Federal and State Agency: Department of Health and Human Services Center for Disease Control and Prevention; United States Department of Health and Human Services; and NJ State Dept. of Health & Senior Services
Federal and State Program Name: HIV Prevention Activities Health Department Based (93.940); State Targeted Response to the Opioid Crisis (93.788); State HIV Services (DHST23HIV006)
Assistance Listing Number: 93.940 and 93.788
Federal and State Award Identification Number and Year: (93.940: NU62PS924524; NU62PS924524H; NU62PS92452; NU62PS92452H; NU62PS924614; NU62PS924614) (93.788: H79TI085743)( STATE: DHST23HIV006)
Pass-Through Agency: NJ State Dept. of Health & Senior Services
Pass-Through Number(s): (93.940: DHST22FPR012; DHST22FPR004; DHST22HRC003; DHST23HRC004; DHST22EHE003; DHST23EHE001) (93.788: DHST23BUP004)
Award Period: See SEFA and SESA
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Indirect costs were not being consistently applied based on quarterly expenditure reports. The reporting was corrected in subsequent quarters in FY 2023.
Condition: Auditor noted while testing reporting of indirect costs 10 of the 12 periods were not correctly being reporting based on the approved indirect cost rate. The reporting was identified and corrected in subsequent periods, however the initial discrepancies were not identified.
Questioned costs: None
Context: Auditor noted while testing reporting of indirect costs 10 of the 12 periods were not correctly being reporting on based on the indirect cost rate. The reporting was identified and corrected in subsequent periods, however the initial discrepancies were not identified.
Cause: During FY 2023 there was turnover in key positions in the CFO and senior accountant positions. The turnover of these positions lead to incorrect reporting of that required correction in subsequent quarters in FY 2023.
Effect: The impact of this led to management not having complete and accurate financial information during FY 2023.
Repeat Finding: No
Recommendation: Auditor recommends that management establish an internal control policy where an individual outside the accounting department that reviews the quarterly reporting to ensure that information is accurate and complete before being submitted.
Views of responsible officials: See corrective action plan