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: The Sustain and Serve Agreement allows a maximum of $10 per meal. Condition: The Foundation requested and received reimbursement for meals in excess of $10 per meal. Cause: The Foundation failed to recalculate the cost per meal before requesting reimbursement. Effect: Reimbursement in excess of $10 is an unallowed cost. Questioned costs: Unallowable costs of $16,540 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 cost per meals do not exceed the allowable rate of $10 per meal. View of Responsible Officials and Planned Corrective Action: The Foundation acknowledges and agrees with the findings and in the process of addressing this finding.