Finding Text
Finding --- Internal controls should be strengthened to ensure proper preparation and reviews of the Schedules of Expenditures of Federal Awards and State Financial Assistance. Criteria --- Management of an entity receiving direct or indirect funding from a federal or state agency is required to prepare accurate and complete Schedules of Expenditures of Federal Awards and State Financial Assistance in accordance with Uniform guidance and New Jersey 15-08-OMB/ the State department?s contract policy manual, respectively. Condition --- Although the Organization prepared the Schedules of Expenditures of Federal Awards and State Financial Assistance, in some instances, the information provided was incomplete or inaccurate. Cause --- A change in upper management at the review level created a gap in internal controls, more specifically, the review of the schedules. Effect --- Improper preparation of the Schedules of Expenditures of Federal Awards and State Financial Assistance can result in incomplete audit coverage. Additionally, omitting grants or otherwise inaccurate reporting of grants reduces financial reporting transparency to government agencies and may be an indication of misappropriation, waste, fraud and/or abuse. Questioned Costs --- None Recommendation --- Management should strengthen controls by providing segregation of duties, in order to ensure reviews over the prepared Schedules of Expenditures of Federal Awards and State Financial Assistance occurs. Training and education should exist for all supervisory members handling contracts and their reporting. Views of Responsible Officials --- Governance agrees with the finding and will institute the recommendation(s).