Finding 634497 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: The Foundation reimbursed an ineligible restaurant, violating the Sustain and Serve Agreement.
  • Impacted Requirements: Funds must only be spent at "Eligible Restaurants" as defined by the awarding agency.
  • Recommended Follow-Up: Implement procedures to ensure all reimbursement requests are verified against the list of "Eligible Restaurants."

Finding Text

2022-003 Federal Program: U.S. Department of Treasury Passed through the New Jersey Economic Development Authority COVID-19 Sustain and Serve NJ CFDA #21.019 Criteria: The Sustain and Serve Agreement requires funds to be spent at ?Eligible Restaurants?. Eligible Restaurants are approved by the awarding agency. Condition: The Foundation requested and received reimbursement for payments made to an ineligible restaurant. Effect: Costs to ineligible restaurant are unallowable. Questioned Cost: Cost of $12,850 were paid to the ineligible restaurant. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population totaling $1,064,742. The finding relates to one ineligible restaurant noted in our population. Our sample was a statistically valid sample. Recommendation: The Foundation should implement procedures to verify that all restaurants requesting reimbursement be verified as "Eligible Restaurants". View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Eligibility

Other Findings in this Audit

  • 58055 2022-003
    Significant Deficiency
  • 58056 2022-004
    Significant Deficiency
  • 58057 2022-005
    Significant Deficiency
  • 634498 2022-004
    Significant Deficiency
  • 634499 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $1.00M
16.575 Crime Victim Assistance $106,723