Finding Text
2022 – 002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing for Opportunities for People with AIDS
Assistance Listing Number: 14.241
Pass-Through Agency: New Jersey Department of Health and Human Services, City of Newark
Pass-Through Number(s): HOPWA1314IH and HOPWA COVID CARES
Award Period: January 1, 2022 through December 31, 2022 and July 31, 2020 through July 31,
2023
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Award requires compliance with the provisions of
reporting. The Organization should have internal controls designed to ensure compliance with
those provisions.
Condition: During our testing, we noted the Organization did not have adequate internal controls
designed to ensure reports are filed timely based on grant requirements.
Questioned costs: None
Context: During our testing, it was noted that the Organization was not submitting expenditure
reports within 15 days of month end.
Cause: The Organization noted there were delays in reporting due to staffing shortages.
Effect: The auditor noted the reports were approved by management and filed during the year;
however, the lack of internal controls over these compliance requirements provides an opportunity
for noncompliance.
Repeat Finding: N/A
Recommendation: We recommend the Organization design controls to ensure an adequate
review process is in place to ensure expenditures reports are submitted within 15 days of month
end.
Views of responsible officials: There is no disagreement with the audit finding.