Finding 634498 (2022-004)

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

AI Summary

  • Core Issue: The Foundation submitted and received reimbursement for duplicate invoices, leading to unallowable costs.
  • Impacted Requirements: Internal controls over compliance were insufficient to prevent duplicate invoice submissions.
  • Recommended Follow-Up: The Foundation should implement stronger processes to detect and prevent duplicate invoices in the reimbursement process.

Finding Text

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: Grantees are required to establish internal controls over compliance that ensure reimbursement is requested for individual invoices and prevent duplicate invoices from entering the system. Condition: The Foundation requested and received reimbursement using duplicate invoices on three occasions. Cause: The duplicate invoices were not detected during the reimbursement request process. Effect: The Foundation was paid for costs that were not incurred. Questioned costs: Unallowable costs of $12,590 were reimbursed to the Foundation. Context: A sample of 40 payments to restaurants totaling $464,776 was selected for audit from a population of $1,064,742. Our sample was a statistically valid sample. Recommendation: The Foundation should establish processes and controls to ensure duplicate invoices are not processed for reimbursement. 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

Other Findings in this Audit

  • 58055 2022-003
    Significant Deficiency
  • 58056 2022-004
    Significant Deficiency
  • 58057 2022-005
    Significant Deficiency
  • 634497 2022-003
    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