0100 10a State Of Nj 06 30 2022 Single Audit Report For Upload Purposes State O
- Document type
- Opinion
- Date
- 2022-06-30
Source document: 0100 10a State Of Nj 06 30 2022 Single Audit Report For Upload Purposes State O; document type: inspector-general-sigpr-reports.
Full text
STATE OF NEW JERSEY
SINGLE AUDIT REPORT
YEAR ENDED JUNE 30, 2022
Independent Auditors’ Report on the
Schedule of Expenditures of Federal Awards
Independent Auditors’ Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of the Schedule of Expenditures of Federal Awards
Performed in Accordance with Government Auditing Standards
Independent Auditors’ Report on Compliance
for Each Major Federal Program and Report on
Internal Control Over Compliance
Required by the Uniform Guidance
STATE OF NEW JERSEY
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT
1
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF THE SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
4
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
6
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
10
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
23
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
27
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
The Governor
State of New Jersey
Report on the Audit of the Schedule of Expenditures of Federal Awards
Opinion
We have audited the accompanying Schedule of Expenditures of Federal Awards (the Schedule) of the
State of New Jersey for the year ended June 30, 2022, and the related notes to the Schedule.
In our opinion, the Schedule referred to above presents fairly, in all material respects, the expenditures
of federal awards of the State of New Jersey for the year ended June 30, 2022, in accordance with the
cash basis of accounting described in Note 2.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS); the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title
2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those
standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the Audit
of the Schedule of Expenditures of Federal Awards section of our report. We are required to be
independent of the State of New Jersey and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter – Basis of Accounting
We draw attention to Note 2 of the Schedule, which describes the basis of accounting. The Schedule is
prepared on the cash basis of accounting, which is a basis of accounting other than accounting
principles generally accepted in the United States of America. Our opinion is not modified with respect to
this matter.
Responsibilities of Management for the Schedule of Expenditures of Federal Awards
Management is responsible for the preparation and fair presentation of the Schedule in accordance
with the cash basis of accounting described in Note 2, and for determining that the cash basis of
accounting is an acceptable basis for the preparation of the Schedule in the circumstances.
Management is also responsible for the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of the Schedule that is free from material
misstatement, whether due to fraud or error.
The Governor
State of New Jersey
(2)
Auditors’ Responsibilities for the Audit of the Schedule of Expenditures of Federal Awards
Our objectives are to obtain reasonable assurance about whether the Schedule as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing
Standards, and the Uniform Guidance will always detect a material misstatement when it exists. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the Schedule.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the Schedule, whether due to fraud, or
error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the
Schedule.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the State of New Jerseys internal control. Accordingly, no such
opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
Schedule.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
The Governor
State of New Jersey
(3)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated April 28, 2023
on our consideration of the State of New Jersey’s internal control over financial reporting of the Schedule
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the effectiveness of the State of New Jersey’s internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the State of New Jersey’s internal control over financial reporting and
compliance.
CliftonLarsonAllen LLP
Baltimore, Maryland
April 28, 2023
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(4)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF THE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
The Governor
State of New Jersey
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the schedule of federal awards and related
notes of the State of New Jersey (the Schedule), for the year ended June 30, 2022 and have issued our
report thereon dated April 28, 2023.
Our report on the Schedule included an emphasis of matter paragraph describing the basis of
accounting described in Note 2 of the Schedule.
Report on Internal Control Over Financial Reporting
In planning and performing our audit, we considered the State of New Jersey’s internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the Schedule, but not for the purpose of
expressing an opinion on the effectiveness of State of New Jersey’s internal control. Accordingly, we do
not express an opinion on the effectiveness of State of New Jersey’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s Schedule will not be prevented, or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is
less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
The Governor
State of New Jersey
(5)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether State of New Jersey’s Schedule is free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the Schedule. However, providing an opinion on compliance with those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government
Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Baltimore, Maryland
April 28, 2023
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP
CLAconnect.com
(6)
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY THE UNIFORM GUIDANCE
The Governor
State of New Jersey
Report on Compliance for Each Major Federal Program
Qualified and Unmodified Opinions
We have audited the State of New Jersey’s (the State) compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct
and material effect on each of the State’s major federal programs for the year ended June 30, 2022. The
State’s major federal programs are identified in the summary of auditors’ results section of the
accompanying schedule of findings and questioned costs.
Qualified Opinions on Certain Major Federal Programs
In our opinion, except for the noncompliance described in the Basis for Qualified and Unmodified
Opinions section of our report, the State complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on the programs for the year
ended June 30, 2022.
Unmodified Opinion on Each of the Other Major Federal Programs
In our opinion, the State complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its other major federal programs
identified in the summary of auditors’ results section of the accompanying schedule of findings and
questioned costs for the year ended June 30, 2022.
Basis for Qualified and Unmodified Opinions
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States; and the audit requirements
of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under
those standards and the Uniform Guidance are further described in the Auditors’ Responsibilities for the
Audit of Compliance section of our report.
We are required to be independent of the State and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each
major federal program. Our audit does not provide a legal determination of the State’s compliance with
the compliance requirements referred to above.
The Governor
State of New Jersey
(7)
Matters Giving Rise to Qualified Opinions on Certain Major Federal Programs
As described in the accompanying schedule of findings and questioned costs, the State did not comply
with requirements regarding the following:
Program
Assistance Listing
Noncompliance
Finding Number
Child Nutrition Cluster
10.553, 10.555,
10.556, 10.559,
10.582
Reporting – FFATA
2022-002
Unemployment Insurance
17.225
Eligibility
2022-003
WIOA Cluster
17.258, 17.259,
17.278
Reporting – FFATA
2022-007
Emergency Rental Assistance
21.023
Reporting
2022-008
Homeowner Assistance Fund
21.026
Reporting – FFATA
2022-009
Aging Cluster
93.044, 93.045,
93.053
Reporting - FFATA
2022-012
Immunization Cooperative
Agreements
93.323
Reporting - FFATA
2022-013
Epidemiology and Laboratory
Capacity for Infectious Diseases
93.323
Reporting - FFATA
2022-015
Epidemiology and Laboratory
Capacity for Infectious Diseases
93.323
Allowable Costs/
Cost Principles
2022-016
Low-Income Home Energy Assistance
93.568
Reporting - FFATA
2022-017
CCDF Cluster
93.575, 93.596
Reporting - FFATA
2022-020
Compliance with such requirements is necessary, in our opinion, for the State to comply with the
requirements applicable to that program.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the
State’s federal programs.
Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on the State’s compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect
The Governor
State of New Jersey
(8)
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that, individually
or in the aggregate, it would influence the judgment made by a reasonable user of the report on
compliance about the State’s compliance with the requirements of each major federal program as a
whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
exercise professional judgment and maintain professional skepticism throughout the audit.
identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the State’s compliance with the compliance
requirements referred to above and performing such other procedures as we considered
necessary in the circumstances.
obtain an understanding of the State’s internal control over compliance relevant to the audit in
order to design audit procedures that are appropriate in the circumstances and to test and report
on internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of the State’s internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and any significant deficiencies and material weaknesses in
internal control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed other instances of noncompliance which are required to
be reported in accordance with the Uniform Guidance and which are described in the accompanying
schedule of findings and questioned costs as items 2022-004, 2022-005, 2022-010, 2022-011, 2022-
018, 2022-019, 2022-021, 2022-022, 2022-023, and 2022-024. Our opinion on each major federal
program is not modified with respect to these matters.
Government Auditing Standards requires the auditor to perform limited procedures on the State’s
response to the noncompliance findings identified in our compliance audit described in the
accompanying schedule of findings and questioned costs. The State’s response was not subjected to
the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion
on the response.
Report on Internal Control Over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the
Auditors’ Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies in internal control over compliance and therefore, material weaknesses or significant
deficiencies may exist that were not identified. However, as discussed below, we did identify certain
The Governor
State of New Jersey
(9)
deficiencies in internal control over compliance that we consider to be material weaknesses and
significant deficiencies.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance requirement
of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the
deficiencies in internal control over compliance described in the accompanying schedule of findings and
questioned costs as items 2022-002, 2022-003, 2022-007, 2022-008, 2022-009, 2022-012, 2022-013,
2022-014, 2022-015, 2022-016, 2022-017, and 2022-020 to be material weaknesses.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance. We consider the deficiencies in internal
control over compliance described in the accompanying schedule of findings and questioned costs as
items 2022-004, 2022-005, 2022-006, 2022-010, 2022-011, 2022-018, 2022-019, 2022-021, 2022-022,
2022-023, and 2022-024 to be significant deficiencies.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
Government Auditing Standards requires the auditor to perform limited procedures on the State’s
response to internal control over compliance findings identified in our audit described in the
accompanying schedule of findings and questioned costs. The State’s response was not subjected to
the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion
on the response.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
CliftonLarsonAllen LLP
Baltimore, Maryland
April 28, 2023
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(10)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Agriculture
10.025
2,246,520
$
-
$
10.163
4,152
-
10.170
677,790
229,922
10.171
38,043
-
10.304
17,238
-
10.435
17,624
-
10.535
190,974
-
10.541
103,889
-
10.542
1,623,468,980
-
10.545
2,801
-
SNAP Cluster
10.551
1,510,449,873
-
10.561
6,168,480
6,168,480
144,523,941
122,428,720
Total State Administrative Matching Grants for the Supplemental Nutrition
Assistance Program
10.561
150,692,421
128,597,200
Total SNAP Cluster
1,661,142,294
128,597,200
10.553
207,725,851
207,725,851
10.555
55,702,191
55,702,191
645,499,002
645,499,002
10.555
701,201,193
701,201,193
10.556
90,615
90,615
10.559
86,307,286
84,372,615
10.582
5,459,316
5,389,284
Total Child Nutrition Cluster
1,000,784,261
998,779,558
10.557
5,554,557
-
136,371,302
29,645,640
10.557
141,925,859
29,645,640
10.558
9,334,873
9,334,873
77,414,256
75,710,954
10.558
86,749,129
85,045,827
10.560
6,674,847
-
10.565
23,357
23,292
10.565
438,823
399,666
10.568
2,806,405
2,018,832
2,618,946
1,876,777
Total Emergency Food Assistance Program (Administrative Costs)
10.568
5,425,351
3,895,609
10.569
7,693,473
-
22,804,520
-
10.569
30,497,993
-
Total Food Distribution Cluster
36,362,167
4,295,275
COVID-19 - Summer Food Service Program for Children
Federal Grantor/
Program or Cluster Title
State Mediation Grants
SNAP Fraud Framework Implementation Grant
Farmers’ Market Supplemental Nutrition Assistance Program Support Grants
COVID-19 - National School Lunch Program
Supplemental Nutrition Assistance Program
Plant and Animal Disease, Pest Control, and Animal Care
Specialty Crop Block Grant Program - Farm Bill
Organic Certification Cost Share Programs
Homeland Security Agricultural
State Administrative Matching Grants for the Supplemental Nutrition Assistance
Program
COVID-19 - Pandemic EBT Food Benefits
Market Protection and Promotion
Child Nutrition-Technology Innovation Grant
COVID-19 - State Administrative Matching Grants for the Supplemental Nutrition
Assistance Program
Child Nutrition Cluster
Summer Food Service Program for Children
COVID-19 - WIC Special Supplemental Nutrition Program for Women, Infants, and
Children
COVID-19 - Child and Adult Care Food Program
National School Lunch Program
Total National School Lunch Program
Special Milk Program for Children
Child and Adult Care Food Program
Total Child and Adult Care Food Program
School Breakfast Program
WIC Special Supplemental Nutrition Program for Women, Infants, and Children
Total WIC Special Supplemental Nutrition Program for Women,
Infants, and Children
Total Emergency Food Assistance Program (Food Commodities)
State Administrative Expenses for Child Nutrition
Food Distribution Cluster
Fresh Fruit and Vegetable Program
Commodity Supplemental Food Program
COVID-19 - Emergency Food Assistance Program (Administrative Costs)
COVID-19 - Emergency Food Assistance Program (Food Commodities)
Emergency Food Assistance Program (Administrative Costs)
Emergency Food Assistance Program (Food Commodities)
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(11)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Agriculture (continued)
10.572
502,165
$
-
$
10.576
854,974
29,918
10.577
75,000
-
10.578
3,505,931
469,716
10.579
543,360
543,360
10.580
687,321
-
10.649
6,800,033
1,663,290
10.664
936,216
32,750
10.680
139,126
-
10.698
152,669
32,610
10.699
91,336
-
Total U.S. Department of Agriculture
4,574,718,056
1,249,388,358
U.S. Department of Commerce
11.407
205,244
-
11.419
2,308,099
25,000
11.434
579,629
-
11.441
424,152
-
11.454
3,533,230
-
11.472
19,437
-
11.474
478,806
-
11.549
-
-
Total U.S. Department of Commerce
7,548,597
25,000
U.S. Department of Defense
12.400
354,015
-
12.401
37,239,276
-
12.404
1,757,215
-
12.620
91,840
49,748
12.CON
308,715
142,065
Total U.S. Department of Defense
39,751,061
191,813
U.S. Department of Housing and Urban Development
14.228
503,859
476,323
5,139,997
4,829,289
14.228
5,643,856
5,305,612
14.231
18,824,577
13,273,527
2,210,075
2,200,823
14.231
21,034,652
15,474,350
14.235
774,304
-
14.239
3,304,381
1,998,576
14.241
45,797
-
1,615,773
-
14.241
1,661,570
-
SNAP Partnership Grant
Supplemental Nutrition Assistance Program, Process and Technology Improvement
Grants
COVID-19 - Pandemic EBT Administrative Costs
Military Construction, National Guard
Community Development Block Grants/State's program and Non-Entitlement Grants
in Hawaii
Total Community Development Block Grants/State's program and
Non-Entitlement Grants in Hawaii
Federal Grantor/
Program or Cluster Title
Forest Health Protection
Senior Farmers Market Nutrition Program
WIC Grants To States (WGS)
Child Nutrition Discretionary Grants Limited Availability
COVID-19 - Housing Opportunities for Persons with AIDS
Atlantic Coastal Fisheries Cooperative Management Act
State and Local Implementation Grant Program
COVID-19 - Unallied Management Projects
WIC Farmers' Market Nutrition Program (FMNP)
Cooperative Forestry Assistance
Partnership Agreements
Troops to Teachers Grant Program
Emergency Solutions Grant Program
Total Emergency Solutions Grant Program
Housing Opportunities for Persons with AIDS
Total Housing Opportunities for Persons with AIDS
National Guard Military Operations and Maintenance (O&M) Projects
National Guard ChalleNGe Program
Contractual Agreements
COVID-19 - Community Development Block Grants/State's program and Non-
Entitlement Grants in Hawaii
COVID-19 - Emergency Solutions Grant Program
Supportive Housing Program
State & Private Forestry Cooperative Fire Assistance
Coastal Zone Management Administration Awards
Cooperative Fishery Statistics
Regional Fishery Management Councils
Unallied Science Program
Interjurisdictional Fisheries Act of 1986
Home Investment Partnerships Program
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(12)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Housing and Urban Development (continued)
14.267
1,143,638
$
-
$
CDBG-Disaster Recovery Grants-Pub. L No. 113-2 Cluster:
14.269
92,022,456
35,386,479
14.272
3,935,578
120,194
Total CDBG-Disaster Recovery Grants-Pub. L No. 113-2 Cluster
95,958,034
35,506,673
14.275
5,100,105
4,853,469
Section 8 Project-Based Cluster:
14.856
4,534,421
-
Total Section 8 Project-Based Cluster
4,534,421
-
Housing Voucher Cluster:
COVID-19 - Section 8 Housing Choice Vouchers
14.871
3,662,933
237,750
279,031,832
(223,176)
14.871
282,694,765
14,574
COVID-19 - Mainstream Vouchers
14.879
55,196
-
1,972,607
-
14.879
2,027,803
-
Total Housing Voucher Cluster
284,722,568
14,574
14.896
112,935
-
14.900
299,904
166,440
Total U.S. Department of Housing and Urban Development
424,290,368
63,319,694
U.S. Department of the Interior
Fish and Wildlife Cluster
15.605
3,322,884
-
15.611
9,208,458
-
Total Fish and Wildlife Cluster
12,531,342
-
15.614
674,489
-
15.615
68,266
-
15.616
39,834
-
15.622
226,474
-
15.634
1,527,049
-
15.810
30,014
-
15.814
12,178
-
15.904
2,026,173
179,348
15.916
3,930,241
-
Total U.S. Department of the Interior
21,066,060
179,348
U.S. Department of Justice
16.015
12,850
-
16.017
571,511
568,511
16.034
3,134,952
40,062
16.101
92,387
-
16.540
775,940
520,915
16.543
612,071
-
16.575
61,965,922
52,231,370
Total Mainstream Vouchers
Federal Grantor/
Program or Cluster Title
Missing Children's Assistance
Total Section 8 Housing Choice Vouchers
Sport Fish Restoration
Cooperative Endangered Species Conservation Fund
Clean Vessel Act
Continuum of Care Program
Lead-Based Paint Hazard Control in Privately-Owned Housing
Hurricane Sandy Community Development Block Grant Disaster Recovery Grants
(CDBG-DR)
Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation
Sexual Assault Services Formula Program
Crime Victim Assistance
Juvenile Justice and Delinquency Prevention
National Disaster Resilience Competition
Housing Trust Fund
Wildlife Restoration and Basic Hunter Education
Equal Employment Opportunity
Historic Preservation Fund Grants-In-Aid
Outdoor Recreation Acquisition, Development and Planning
State Wildlife Grants
National Cooperative Geologic Mapping
National Geological and Geophysical Data Preservation
COVID-19 - Coronavirus Emergency Supplemental Funding Program
Sportfishing and Boating Safety Act
Section 8 Housing Choice Vouchers
Mainstream Vouchers
Family Self-Sufficiency Program
Coastal Wetlands Planning, Protection and Restoration
Missing Alzheimer's Disease Patient Assistance Program
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(13)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Justice (continued)
16.576
2,741,729
$
1,419,686
$
16.582
346,427
336,781
16.588
4,672,009
3,945,818
16.590
9,502
-
16.593
175,275
76,092
16.606
5,202,985
-
16.710
2,182,598
153,632
16.734
773,950
487,404
16.735
44,536
-
16.738
3,735,940
1,896,143
16.741
535,166
-
16.742
614,562
75,236
16.746
114,938
-
16.751
165,734
-
16.752
115,574
-
16.754
392,387
-
16.812
8,951
-
16.816
49,532
-
16.831
33,724
20,000
16.833
217,119
-
16.835
1,051,176
-
16.838
139,947
85,773
16.839
273,218
65,243
16.CON
40,539
-
Total U.S. Department of Justice
90,803,151
61,922,666
U.S. Department of Labor
17.002
1,614,589
-
17.005
393,182
-
Employment Services Cluster
17.207
20,174,102
-
17.801
2,803,856
-
17.804
1,025,187
-
Total Employment Services Cluster
24,003,145
-
17.225
3,945,196,516
-
2,058,098,315
-
17.225
6,003,294,831
-
17.235
2,518,397
-
17.245
3,624,237
1,004,236
WIOA Cluster:
17.258
26,331,474
20,630,287
17.259
20,861,806
20,247,213
17.278
29,218,573
20,852,063
Total WIOA Cluster
76,411,853
61,729,563
State Criminal Alien Assistance Program
Total Unemployment Insurance
Public Safety Partnership and Community Policing Grants
Compensation and Working Conditions
Crime Victim Assistance/Discretionary Grants
Violence Against Women Formula Grants
Crime Victim Compensation
Federal Grantor/
Program or Cluster Title
Support for Adam Walsh Act Implementation Grant Program
Children of Incarcerated Parents
Contractual Agreements
Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program
Residential Substance Abuse Treatment for State Prisoners
Special Data Collections and Statistical Studies
PREA Program: Strategic Support for PREA Implementation
John R. Justice Prosecutors and Defenders Incentive Act
Body Worn Camera Policy and Implementation
STOP School Violence
Capital Case Litigation Initiative
Economic, High-Tech, and Cyber Crime Prevention
Paul Coverdell Forensic Sciences Improvement Grant Program
DNA Backlog Reduction Program
Employment Service/Wagner-Peyser Funded Activities
Senior Community Service Employment Program
National Sexual Assault Kit Initiative
Comprehensive Opioid, Stimulant, and Substance Abuse Program
WIOA Youth Activities
WIOA Dislocated Worker Formula Grants
Labor Force Statistics
Edward Byrne Memorial Justice Assistance Grant Program
Harold Rogers Prescription Drug Monitoring Program
Second Chance Act Reentry Initiative
COVID-19 - Unemployment Insurance
Jobs for Veterans State Grants
Local Veterans' Employment Representative Program
Unemployment Insurance
WIOA Adult Program
Trade Adjustment Assistance
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(14)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Labor (continued)
17.261
412,485
$
412,485
$
17.271
252,811
-
17.273
505,829
-
17.277
4,495,693
4,361,511
967,125
892,415
17.277
5,462,818
5,253,926
17.285
363,836
47,223
17.503
2,123,623
-
17.504
2,015,873
-
17.600
89,478
-
Total U.S. Department of Labor
6,123,086,987
68,447,433
U.S. Department of Transportation
20.106
69,000
-
664,591
-
20.106
733,591
-
Highway Planning and Construction Cluster
20.205
865,034,761
77,460,935
20.219
1,404,736
24,000
Total Highway Planning and Construction Cluster
866,439,497
77,484,935
FMCSA Cluster
20.218
6,994,963
-
20.237
53,015
-
Total FMCSA Cluster
7,047,978
-
20.232
716,832
-
20.528
916,824
-
Highway Safety Cluster
20.600
6,768,749
3,073,942
20.616
10,180,576
6,422,018
Total Highway Safety Cluster
16,949,325
9,495,960
20.700
2,670,119
3,162
20.703
371,986
112,990
20.720
57,387
-
20.721
52,200
-
20.CON
218,248
-
Total U.S. Department of Transportation
896,173,987
87,097,047
U.S. Department of the Treasury:
21.019
135,990,635
(47,702,852)
21.023
632,326,631
-
21.026
325,965,861
325,965,861
21.027
440,084,710
229,741,387
21.UNA
333,777
-
Total Department of the Treasury
1,534,701,614
508,004,396
Interagency Hazardous Materials Public Sector Training and Planning Grants
Commercial Driver's License Program Implementation Grant
Occupational Safety and Health State Program
Consultation Agreements
Mine Health and Safety Grants
State and Community Highway Safety
National Priority Safety Programs
Pipeline Safety Program State Base Grant
Rail Fixed Guideway Public Transportation System State Safety Oversight Formula
Grant Program
Airport Improvement Program
Total Airport Improvement Program
Temporary Labor Certification for Foreign Workers
Recreational Trails Program
Work Opportunity Tax Credit Program (WOTC)
Apprenticeship USA Grants
Federal Grantor/
Program or Cluster Title
Contractual Agreements
Motor Carrier Safety Assistance High Priority Activities Grants and Cooperative
Agreements
Motor Carrier Safety Assistance
State Damage Prevention Program Grants
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
COVID-19 - Airport Improvement Program
Highway Planning and Construction
COVID-19 - WIOA National Dislocated Worker Grants / WIA National Emergency
Grants
WIOA National Dislocated Worker Grants / WIA National Emergency Grants
Total WIOA National Dislocated Worker Grants /
WIA National Emergency Grants
WIOA Pilots, Demonstrations, and Research Projects
PHMSA Pipeline Safety Program One Call Grant
COVID-19 - Emergency Rental Assistance Program
COVID-19 - Homeowner Assistance Fund
COVID-19 - Coronavirus Relief Fund
COVID-19 - Unassigned Catalog Numbers from Federal Government
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(15)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
National Endowment for the Arts
45.025
1,082,716
$
586,406
$
Total National Endowment for the Arts
1,082,716
586,406
Small Business Administration
59.061
1,712,382
1,712,382
Total Small Business Administration
1,712,382
1,712,382
Department of Veterans Affairs
64.005
197,472
-
64.015
26,958,011
-
64.024
10,579,824
-
64.101
1,243,109
-
64.125
498,657
-
64.203
3,855,179
-
Total U.S. Department of Veterans Affairs
43,332,252
-
U.S. Environmental Protection Agency
66.034
541,136
-
66.040
21,750
21,750
66.204
27,825
-
66.436
25,000
-
66.444
363,142
-
66.454
1,112,130
297,423
Clean Water State Revolving Fund Cluster
66.458
94,026,618
90,191,874
66.482
5,765,768
5,623,059
Total Clean Water State Revolving Fund Cluster
99,792,386
95,814,933
66.460
-
-
66.461
400,115
-
Drinking Water State Revolving Fund Cluster
66.468
37,321,333
34,096,170
66.483
440,494
415,022
Total Drinking Water State Revolving Fund Cluster
37,761,827
34,511,192
66.472
178,179
167,179
66.605
16,460,249
4,113,747
66.707
579,609
-
66.708
7,086
7,086
66.802
1,001,417
-
66.804
501,051
-
66.805
1,568,718
-
66.817
556,575
-
Total U.S. Environmental Protection Agency
160,898,195
134,933,310
Underground Storage Tank (UST) Prevention, Detection, and Compliance Program
State Trade Expansion
TSCA Title IV State Lead Grants Certification of Lead-Based Paint Professionals
Superfund State, Political Subdivision, and Indian Tribe Site-Specific Cooperative
Agreements
Disaster Relief Appropriations Act (DRAA) Hurricane Sandy Capitalization Grants
For Clean Water State Revolving Funds
Diesel Emissions Reduction Act (DERA) State Grants
Water Quality Management Planning
Beach Monitoring and Notification Program Implementation Grants
Performance Partnership Grants
Capitalization Grants for Drinking Water State Revolving Funds
Regional Wetland Program Development Grants
Vocational and Educational Counseling for Servicemembers and Veterans
Disaster Relief Appropriations Act (DRAA) Hurricane Sandy Capitalization Grants
for Drinking Water State Revolving Funds
Capitalization Grants for Clean Water State Revolving Funds
Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose
Activities Relating to the Clean Air Act
Pollution Prevention Grants Program
State and Tribal Response Program Grants
Promotion of the Arts Partnership Agreements
Federal Grantor/
Program or Cluster Title
Burial Expenses Allowance for Veterans
Leaking Underground Storage Tank Trust Fund Corrective Action Program
Multipurpose Grants to States and Tribes
Lead Testing in School and Child Care Program Drinking Water (SDWA 1464(d))
Nonpoint Source Implementation Grants
Veterans State Nursing Home Care
COVID-19 - Grants to States for Construction of State Home Facilities
COVID-19 - VA Homeless Providers Grant and Per Diem Program
Veterans Cemetery Grants Program
Surveys, Studies, Investigations, Demonstrations, and Training Grants and
Cooperative Agreements - Section 104(b)(3) of the Clean Water Act
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(16)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Energy
81.041
1,263,393
$
666,193
$
81.042
4,357,285
3,486,610
81.119
81,440
-
81.ADM
938,027
-
6,640,145
4,152,803
U.S. Department of Education
84.002
17,354,206
14,861,440
84.010
362,769,265
358,972,444
84.011
1,037,467
847,168
84.013
1,979,614
145,655
Special Education Cluster (IDEA)
84.027
31,727,350
31,719,194
364,424,295
336,525,073
84.027
396,151,645
368,244,267
84.173
1,949,118
1,949,118
10,419,131
10,298,720
84.173
12,368,249
12,247,838
Total Special Education Cluster
408,519,894
380,492,105
84.048
25,915,713
23,655,284
84.051
176,385
164,873
84.126
43,529,164
(10,488,026)
84.144
52,915
-
84.177
822,454
634,169
84.181
1,053,791
906,702
9,658,694
6,056,843
84.181
10,712,485
6,963,545
84.187
92,081
-
84.196
2,355,304
2,088,954
84.287
28,102,167
26,844,463
84.323
1,224,603
-
84.334
3,300,777
2,900,445
84.358
41,164
39,637
84.365
18,732,523
17,782,241
84.367
43,100,489
41,356,577
84.369
5,679,225
-
84.372
627,389
-
84.377
6,972,009
6,972,009
84.424
27,221,574
26,047,022
Education Stabilization Fund
84.425C
29,945,475
29,514,120
84.425D
569,130,573
565,357,418
84.425R
15,971,678
-
84.425U
149,896,088
149,015,032
84.425W
19,246
-
84.425
764,963,060
743,886,570
COVID-19 - Special Education Preschool Grants
Rural Education
English Language Acquisition State Grants
School Improvement Grants
Statewide Longitudinal Data Systems
Student Support and Academic Enrichment Program
COVID-19 - Governor's Emergency Education Relief Fund
Special Education Preschool Grants
Grants for State Assessments and Related Activities
Total U.S. Department of Energy
Federal Grantor/
Program or Cluster Title
Supported Employment Services for Individuals with the Most Significant Disabilities
Education for Homeless Children and Youth
Migrant Education Coordination Program
Rehabilitation Services Independent Living Services for Older Individuals Who are
Blind
Rehabilitation Services Vocational Rehabilitation Grants to States
Career and Technical Education -- Basic Grants to States
Special Education-Grants for Infants and Families
Title I State Agency Program for Neglected and Delinquent Children and Youth
COVID-19 - Special Education Grants to States
Total Special Education Preschool Grants
COVID-19 - Special Education-Grants for Infants and Families
Total Special Education-Grants for Infants and Families
Special Education Grants to States
Total Special Education Grants to States
Administration Costs Consolidations
State Energy Program Special Projects
Twenty-First Century Community Learning Centers
COVID-19 - Elementary and Secondary School Emergency Relief Fund
COVID-19 - Coronavirus Response and Relief Supplemental Appropriations Act,
2021-Emergency Assistance to Non-Public Schools (CRRSA EANS)
COVID-19 - American Rescue Plan - Elementary and Secondary School Emergency
Relief (ARP ESSER)
Special Education - State Personnel Development
Gaining Early Awareness and Readiness for Undergraduate Programs
Career and Technical Education -- National Programs
Adult Education - Basic Grants to States
Total Education Stabilization Fund
COVID-19 - American Rescue Plan Elementary and Secondary School Emergency
Relief – Homeless Children and Youth (ARP-HCY)
Supporting Effective Instruction State Grants (formerly Improving Teacher Quality
State Grants)
Migrant Education State Grant Program
State Energy Program
Weatherization Assistance for Low-Income Persons
Title I Grants to Local Educational Agencies
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(17)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Education (continued)
84.426
488,388
$
488,388
$
84.CON
183,632
-
84.UNA
44,023
-
Total U.S. Department of Education
1,775,997,970
1,644,654,963
U.S. Election Assistance Commission
90.401
23,527
-
90.404
348,072
48,053
Total U.S. Election Assistance Commission
371,599
48,053
U.S. Department of Health and Human Services
93.041
217,855
-
93.042
396,982
-
348,794
-
93.042
745,776
-
93.043
316,076
316,076
Aging Cluster
93.044
1,222,426
1,222,426
4,709,750
4,709,750
93.044
1,222,426
1,222,426
93.045
3,340,462
3,329,802
4,832,131
3,458,313
93.045
8,172,593
6,788,115
93.053
1,665,944
1,665,944
Total Aging Cluster
15,770,713
14,386,235
93.048
562,781
517,808
93.052
67,500
-
2,329,551
2,328,699
93.052
2,397,051
2,328,699
93.069
15,222,816
6,842,327
93.070
1,980,374
5,164
93.071
494,007
444,101
93.073
201,574
-
93.079
66,013
-
93.090
6,610,981
-
93.092
1,160,881
1,009,109
Federal Grantor/
Program or Cluster Title
Guardianship Assistance
COVID-19 - Special Programs for the Aging, Title III, Part C, Nutrition Services
National Family Caregiver Support, Title III, Part E
Environmental Public Health and Emergency Response
COVID-19 - Randolph-Sheppard – Financial Relief and Restoration Payments
Total Special Programs for the Aging, Title III, Part B, Grants for Supportive
Services and Senior Centers
Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and
Senior Centers
Help America Vote Act Requirements Payments
Contractual Agreements
Cooperative Agreements to Promote Adolescent Health through School-Based
HIV/STD Prevention and School-Based Surveillance
Total National Family Caregiver Support, Title III, Part E
Total Special Programs for the Aging, Title III, Part C, Nutrition Services
COVID-19 - National Family Caregiver Support, Title III, Part E
2018 HAVA Election Security Grants
Affordable Care Act (ACA) Personal Responsibility Education Program
COVID-19 - Special Programs for the Aging, Title III, Part B, Grants for Supportive
Services and Senior Centers
Special Programs for the Aging, Title III, Part C, Nutrition Services
Nutrition Services Incentive Program
COVID-19 - Special Programs for the Aging, Title IV, and Title II, Discretionary
Projects
Special Programs for the Aging, Title VII, Chapter 3, Programs for Prevention of
Elder Abuse, Neglect, and Exploitation
COVID-19 - Special Programs for the Aging, Title VII, Chapter 2, Long Term Care
Ombudsman Services for Older Individuals
Special Programs for the Aging, Title III, Part D, Disease Prevention and Health
Promotion Services
Medicare Enrollment Assistance Program
Unassigned Catalog Numbers from Federal Government
Total Special Programs for the Aging, Title VII, Chapter 2, Long Term Care
Ombudsman Services for Older Individuals
Special Programs for the Aging, Title VII, Chapter 2, Long Term Care Ombudsman
Services for Older Individuals
Public Health Emergency Preparedness
Birth Defects and Developmental Disabilities - Prevention and Surveillance
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(18)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Health and Human Services (continued)
Hurricane Sandy Relief Cluster
93.095
(447)
$
(447)
$
Total Hurricane Sandy Relief Cluster
(447)
(447)
93.103
131,002
-
2,025,873
108,000
93.103
2,156,875
108,000
93.104
2,319,102
-
93.110
3,054,780
1,492,873
93.116
2,248,182
1,322,853
93.127
109,003
-
93.130
293,650
-
93.136
8,567,585
4,703,915
93.142
106,328
-
93.150
36,170
19,176
93.153
2,067,699
1,923,127
93.165
55,609
-
93.197
487,556
-
93.235
1,336,963
1,115,598
93.236
509,809
292,418
93.240
50,119
-
462,307
-
93.240
512,426
-
93.243
6,999,449
5,120,056
93.251
256,310
131,866
93.262
139,875
-
93.268
32,802,072
9,539,821
7,862,461
1,816,879
96,578,431
-
93.268
137,242,964
11,356,700
93.270
379,446
69,875
93.283
17,190
-
93.314
138,596
-
93.323
241,759,089
79,829,928
2,436,755
78,000
93.323
244,195,844
79,907,928
Maternal and Child Health Federal Consolidated Programs
Comprehensive Community Mental Health Services for Children with Serious
Emotional Disturbances (SED)
Project Grants and Cooperative Agreements for Tuberculosis Control Programs
Immunization Cooperative Agreements
Occupational Safety and Health Program
COVID-19 - Food and Drug Administration Research
Total Food and Drug Administration Research
Substance Abuse and Mental Health Services Projects of Regional and National
Significance
Coordinated Services and Access to Research for Women, Infants, Children, and
Youth
Grants to States for Loan Repayment
State Capacity Building
Total State Capacity Building
Epidemiology and Laboratory Capacity for Infectious Diseases
Federal Grantor/
Program or Cluster Title
Cooperative Agreements to States/Territories for the Coordination and Development
of Primary Care Offices
Grants to States to Support Oral Health Workforce Activities
COVID-19 - Epidemiology and Lab Capacity for Infectious Diseases
NIEHS Hazardous Waste Worker Health and Safety Training
Projects for Assistance in Transition from Homelessness (PATH)
Title V State Sexual Risk Avoidance Education (Title V State SRAE) Program
COVID-19 - State Capacity Building
Early Hearing Detection and Intervention
Immunization Cooperative Agreements (non-monetary)
Injury Prevention and Control Research and State and Community Based Programs
COVID-19 - Immunization Cooperative Agreements
Viral Hepatitis Prevention and Control
Food and Drug Administration Research
HHS Programs for Disaster Relief Appropriations Act - Non Construction
Emergency Medical Services for Children
Childhood Lead Poisoning Prevention Projects, State and Local Childhood Lead
Poisoning Prevention and Surveillance of Blood Lead Levels in Children
Early Hearing Detection and Intervention Information System (EHDI-IS) Surveillance
Program
Total Immunization Cooperative Agreements
Total Epidemiology and Lab Capacity for Infectious Diseases
Centers for Disease Control and Prevention Investigations and Technical Assistance
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(19)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Health and Human Services (continued)
93.324
996,468
$
617,198
$
93.336
433,540
-
93.369
495,063
1,901
93.354
5,250,479
1,132,762
93.367
319,419
-
93.387
1,489,240
1,050,909
93.391
3,737,690
3,355,955
93.421
5,434
-
93.426
2,062,382
1,096,353
93.434
11,388,193
8,456,147
93.436
373,840
169,667
93.464
578,404
517,227
93.471
309,208
-
93.478
637,854
353,279
93.495
108,543
108,543
93.498
3,142,125
-
93.499
184,599
-
93.556
7,671,708
-
93.558
1,044,846
-
286,867,337
66,901,118
93.558
287,912,183
66,901,118
93.563
142,497,615
8,569,372
93.566
1,735,072
229,869
93.568
63,974,973
3,374,047
139,096,868
16,782,703
93.568
203,071,841
20,156,750
93.569
7,083,645
7,083,645
20,562,958
19,738,685
93.569
27,646,603
26,822,330
93.590
1,861,057
1,711,057
CCDF Cluster
93.575
360,710,027
165,937,166
82,519,475
55,556,614
93.575
443,229,502
221,493,780
93.596
42,735,297
20,348,305
Total CCDF Cluster
485,964,799
241,842,085
COVID-19 - Low-Income Home Energy Assistance
COVID-19 - Community Services Block Grant
COVID-19 - Child Care and Development Block Grant
Child Care Mandatory and Matching Funds of the Child Care and Development
Fund
Community Services Block Grant
Total Community Services Block Grant
Child Care and Development Block Grant
Low-Income Home Energy Assistance
Total Child Care and Development Block Grant
Community-Based Child Abuse Prevention Grants
Title IV-E Kinship Navigator Program
COVID-19 - Provider Relief Fund
Total Low-Income Home Energy Assistance
Every Student Succeeds Act/Preschool Development Grants
ACL Assistive Technology
State Health Insurance Assistance Program
ACL Independent Living State Grants
Preventing Maternal Deaths: Supporting Maternal Mortality Review Committees
Child Support Enforcement
Flexible Funding Model - Infrastructure Development and Maintenance for State
Manufactured Food Regulatory Programs
Improving the Health of Americans through Prevention and Management of
Diabetes and Heart Disease and Stroke
COVID-19 - Temporary Assistance for Needy Families
Behavioral Risk Factor Surveillance System
COVID-19 - Public Health Emergency Response: Cooperative Agreement for
Emergency Response: Public Health Crisis Response
COVID-19 - Community Health Workers for Public Health Response and Resilient
COVID-19 - Low Income Household Water Assistance Program
Refugee and Entrant Assistance State/Replacement Designee Administered
Programs
MaryLee Allen Promoting Safe and Stable Families Program
COVID-19 - Activities to Support State, Tribal, Local and Territorial (STLT) Health
Department Response to Public Health or Healthcare Crises
Well-Integrated Screening and Evaluation for Women Across the Nation
(WISEWOMAN)
Federal Grantor/
Program or Cluster Title
Temporary Assistance for Needy Families
Total Temporary Assistance for Needy Families
National and State Tobacco Control Program
COVID-19 - Strengthening Public Health Systems and Services through National
Partnerships to Improve and Protect the Nation’s Health
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(20)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Health and Human Services (continued)
93.586
93,785
$
-
$
603,768
-
93.586
697,553
-
93.597
143,278
-
93.599
518,000
-
564,581
-
93.599
1,225,859
-
Head Start Cluster
93.600
184,305
-
Total Head Start Cluster
184,305
-
93.630
70,459
-
1,128,077
463,651
93.630
1,198,536
463,651
93.643
379,706
-
93.645
88,395
-
6,629,857
-
93.645
6,718,252
-
93.658
89,157,989
-
93.659
89,838,055
-
93.665
750,215
-
93.667
53,938,770
1,350,901
93.669
589,135
-
93.670
-
-
93.671
1,501,981
1,500,069
2,760,534
2,741,206
93.671
4,262,515
4,241,275
93.674
988,465
-
2,271,153
-
93.674
9,513,495
8,482,550
93.747
1,538,977
1,410,460
601,302
-
93.747
2,140,279
1,410,460
COVID-19 - Children's Health Insurance Program
93.767
24,658,609
-
Children's Health Insurance Program
543,788,985
4,356,519
93.767
568,447,594
4,356,519
Medicaid Cluster
93.775
3,685,883
-
93.777
13,047,075
-
93.778
929,563,321
7,207,191
14,035,467,562
173,823,886
93.778
14,965,030,883
181,031,077
Total Medicaid Cluster
14,981,763,841
181,031,077
Stephanie Tubbs Jones Child Welfare Services Program
COVID-19 - State Court Improvement Program
Grants to States for Access and Visitation Programs
Head Start
COVID-19 - Chafee Education and Training Vouchers Program (ETV)
Foster Care Title IV-E
COVID-19 - John H. Chafee Foster Care Program for Successful Transition to
Adulthood
Elder Abuse Prevention Interventions Program
COVID-19 - Developmental Disabilities Basic Support and Advocacy Grants
Total Developmental Disabilities Basic Support and Advocacy Grants
Total John H. Chafee Foster Care Program for Successful Transition to Adulthood
John H. Chafee Foster Care Program for Successful Transition to Adulthood
Child Abuse and Neglect Discretionary Activities
Adoption Assistance
Social Services Block Grant
Child Abuse and Neglect State Grants
Federal Grantor/
Program or Cluster Title
Family Violence Prevention and Services/Domestic Violence Shelter and Supportive
Services
COVID-19 - Stephanie Tubbs Jones Child Welfare Services Program
Total Stephanie Tubbs Jones Child Welfare Services Program
Total Family Violence Prevention and Services/Domestic Violence Shelter and
Supportive Services
COVID-19 - Family Violence Prevention and Services/Domestic Violence Shelter
and Supportive Services
COVID-19 - Elder Abuse Prevention Interventions Program
Total Elder Abuse Prevention Interventions Program
Medical Assistance Program
Total Children's Health Insurance Program
Total Medical Assistance Program
Chafee Education and Training Vouchers Program (ETV)
State Court Improvement Program
Total State Court Improvement Program
Total Chafee Education and Training Vouchers Program (ETV)
State Survey and Certification of Health Care Providers and Suppliers (Title XVIII)
Medicare
State Medicaid Fraud Control Units
COVID-19 - Emergency Grants to Address Mental and Substance Use Disorders
During COVID-19
COVID-19 - Medical Assistance Program
Developmental Disabilities Basic Support and Advocacy Grants
Children's Justice Grants to States
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(21)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
U.S. Department of Health and Human Services (continued)
93.788
43,008,692
$
32,927,501
$
93.791
414,874
414,874
14,000,737
8,163,856
93.791
14,415,611
8,578,730
93.870
522,471
522,471
10,367,883
10,024,487
93.870
10,890,354
10,546,958
93.889
1,080,074
945,610
7,542,143
4,552,203
93.889
8,622,217
5,497,813
93.898
4,641,768
3,036,841
93.913
157,901
67,947
93.917
110,184
18,005
38,304,394
8,048,249
93.917
38,414,578
8,066,254
93.940
15,652,302
8,761,895
93.944
1,275,582
274,424
93.946
115,258
-
93.958
777,037
500,597
10,970,130
8,738,051
93.958
11,747,167
9,238,648
93.959
5,000,679
4,747,728
45,739,356
23,653,587
93.959
50,740,035
28,401,315
93.977
1,481,656
-
2,066,877
-
93.977
54,288,568
28,401,315
93.982
7,198,624
6,887,029
93.991
2,589,174
1,681,355
93.994
13,237,289
8,300,261
93.CON
8,693
-
2,698,337
168,436
93.CON
2,707,030
168,436
Total U.S. Department of Health and Human Services
17,682,365,558
841,795,269
Corporation for National and Community Service
94.003
41,092
-
550,400
-
94.003
591,492
-
94.006
194,071
194,071
2,795,878
2,411,879
94.006
2,989,949
2,605,950
94.008
62,465
-
94.009
113,410
-
Foster Grandparent/Senior Companion Cluster
94.011
707,030
390,700
Total Foster Grandparent/Senior Companion Cluster
707,030
390,700
94.021
256,024
221,347
Total Corporation for National and Community Service
4,720,370
3,217,997
Money Follows the Person Rebalancing Demonstration
COVID-19 - Money Follows the Person Rebalancing Demonstration
Opioid STR
COVID-19 - State Commissions
Sexually Transmitted Diseases (STD) Prevention and Control Grants
Total Money Follows the Person Rebalancing Demonstration
COVID-19 - National Bioterrorism Hospital Preparedness Program
Total National Bioterrorism Hospital Preparedness Program
COVID-19 - HIV Care Formula Grants
Total HIV Care Formula Grants
COVID-19 - Contractual Agreements
Total Contractual Agreements
COVID-19 - Mental Health Disaster Assistance and Emergency Mental Health
Training and Technical Assistance
Contractual Agreements
Human Immunodeficiency Virus (HIV)/Acquired Immunodeficiency Virus Syndrome
(AIDS) Surveillance
Cooperative Agreements to Support State-Based Safe Motherhood and Infant
Health Initiative Programs
National Bioterrorism Hospital Preparedness Program
Grants to States for Operation of State Offices of Rural Health
HIV Care Formula Grants
HIV Prevention Activities Health Department Based
Cancer Prevention and Control Programs for State, Territorial and Tribal
Organizations
COVID-19 - AmeriCorps
COVID-19 - Block Grants for Prevention and Treatment of Substance Abuse
COVID-19 - Maternal, Infant and Early Childhood Home Visiting Grant
Block Grants for Community Mental Health Services
Preventive Health and Health Services Block Grant
Federal Grantor/
Program or Cluster Title
Total State Commissions
AmeriCorps
Commission Investment Fund
Total AmeriCorps
Maternal, Infant and Early Childhood Home Visiting Grant
Total Maternal, Infant and Early Childhood Home Visiting Grant
COVID-19 - Block Grants for Community Mental Health Services
Total Block Grants for Community Mental Health Services
Block Grants for Prevention and Treatment of Substance Abuse
Total Block Grants for Prevention and Treatment of Substance Abuse
Total Sexually Transmitted Diseases (STD) Prevention and Control Grants
COVID-19 - Sexually Transmitted Diseases (STD) Prevention and Control Grants
State Commissions
Foster Grandparent Program
Volunteer Generation Fund
Maternal and Child Health Services Block Grant to the States
STATE OF NEW JERSEY
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Schedule of Expenditures of Federal Awards.
(22)
Assistance
Listing Number
Federal Expenditures
Passed Through to
Subrecipients
Social Security Administration
Disability Insurance/SSI Cluster
96.001
67,510,637
$
-
$
Total Disability Insurance/SSI Cluster
67,510,637
-
Social Security Administration (continued)
Unassigned Catalog Numbers From Federal Government
96.UNA
64,012
41,267
Total Social Security Administration
67,574,649
41,267
U.S. Department Homeland Security
97.008
8,770,837
8,770,837
97.012
2,172,742
-
97.023
545,562
-
97.025
3,601,852
2,342,785
97.029
5,713,390
5,415,360
97.036
917,210,596
394,907,848
Disaster Grants - Public Assistance (Presidentially Declared Disasters)
200,475,755
186,117,574
97.036
1,117,686,351
581,025,422
97.039
14,671,315
9,001,350
97.041
150,347
-
97.042
1,356,706
-
7,273,929
2,155,628
97.042
8,630,635
2,155,628
97.045
598,342
-
97.047
4,649,174
4,649,174
97.050
(10,089)
-
97.056
170,142
-
97.067
26,162,974
18,498,138
97.091
450,207
-
97.111
75,634
-
97.134
6,647
-
Total U.S. Department Homeland Security
1,194,046,062
631,858,694
Total Expenditures of Federal Awards
34,650,881,779
$
5,301,576,899
$
Presidential Residence Protection Security Grant
Community Assistance Program State Support Services Element
(CAP-SSSE)
National Urban Search and Rescue (US&R) Response System
Flood Mitigation Assistance
Hazard Mitigation Grant
National Dam Safety Program
Emergency Management Performance Grants
Cooperating Technical Partners
BRIC: Building Resilient Infrastructure and Communities
Port Security Grant Program
COVID-19 - Disaster Grants - Public Assistance (Presidentially Declared Disasters)
COVID-19 - Emergency Management Performance Grants
Total Emergency Management Performance Grants
COVID-19 - Presidential Declared Disaster Assistance to Individuals and
Households - Other Needs
Total Disaster Grants - Public Assistance (Presidentially
Declared Disasters)
Regional Catastrophic Preparedness Grant Program (RCPGP)
Social Security Disability Insurance
Homeland Security Grant Program
Homeland Security Biowatch Program
Non-Profit Security Program
Boating Safety Financial Assistance
Federal Grantor/
Program or Cluster Title
STATE OF NEW JERSEY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(23)
NOTE 1
BASIS OF PRESENTATION
Reporting Entity
The Schedule of Expenditures of Federal Awards (the Schedule) includes all federal
award programs administered by the State of New Jersey (the State) except for
component units for the fiscal year ended June 30, 2022. The State financial reporting
entity is described in note 1b of the State’s Annual Comprehensive Financial Report.
Accordingly, the accompanying Schedule presents the federal awards programs
administered by the State, as defined above, for the year ended June 30, 2022.
Federal Family Education Loan Program
On December 31, 2019, the State transferred its outstanding Federal Family Education
Loan Program - Guaranty Program (FFELP) portfolio to the federally designated
successor agency, Kentucky Higher Education Assistance Authority (KHEAA). As of
January 1, 2020, the State is no longer a FFELP guaranty agency and has not
purchased or serviced defaulted loans per the transfer agreement. As a result of this
transfer of the State’s entire portfolio to KHEAA during fiscal year 2020, the principal
amount outstanding for guaranteed loans as of June 30, 2022 and 2021 were $0 and
$0, respectively. There were no program administrative costs incurred or recorded
during the current fiscal year 2022.
Federal Awards Programs Numbers
Certain programs presented in the accompanying Schedule include Federal award
programs that have not been assigned a federal Assistance Listing Number (ALN),
which are reported by the respective Federal agency and titled "UNA". Programs under
direct contract are titled "CON''. The Administration Costs Consolidations under the U.S.
Department of Energy is labeled "ADM".
NOTE 2
BASIS OF ACCOUNTING
General
Expenditures reported on the SEFA are reported on the cash basis of accounting
except for the inclusion of noncash items. Therefore, some amounts presented in the
SEFA may differ from amounts presented in, or used in the preparation of, the State of
New Jersey’s basic financial statements. Such expenditures are recognized following
the cost principles contained in the Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Negative amounts
shown on the SEFA represent adjustments or credits made in the normal course of
business to amounts reported as expenditures in prior years.
Matching Costs
Matching costs, i.e., the non-Federal share of certain program costs, are not included in
the accompanying Schedule.
STATE OF NEW JERSEY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(24)
NOTE 2
BASIS OF ACCOUNTING (CONTINUED)
Indirect Costs
The State and its various departments did not elect the 10 percent de minimis indirect cost
rate as discussed in 2 CFR 200.414. Each department within the State that has a negotiated
indirect cost rate with a Federal agency can use such indirect cost rates for any pass
through grants to subrecipients.
Highway Planning and Construction Program
The amount presented in the Highway Planning and Construction Program (20.205)
represents the summary of billings from the Department of Transportation to the Federal
Government which include expenditures currently determined to be chargeable to the
Federal program.
NOTE 3
RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
The regulations and guidelines governing the preparation of Federal financial reports
vary by Federal agency and among programs administered by the same agency.
Accordingly, the amounts reported in the Federal financial reports do not necessarily
agree with the amounts reported in the accompanying Schedule, which is prepared on
the cash basis explained in note 2.
NOTE 4
NONMONETARY FEDERAL FINANCIAL ASSISTANCE
The State is the recipient of federal financial assistance programs that do not result in
cash receipts of disbursements. Noncash amounts received by the State are included in
the Schedule as follows:
Assistance
Listing
Amounts
COVID-19 - Pandemic EBT
10.542
1,623,468,980
$
Supplemental Nutrition Assistance Program
10.551
1,510,449,873
Emergency Food Assistance Program
10.569
22,804,520
COVID-19 - Emergency Food Assistance Program
10.569
7,693,473
Immunization Grants
93.268
96,578,431
3,260,995,277
$
STATE OF NEW JERSEY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(25)
NOTE 5
CONTINGENCIES
The State's participation in Federal funding is subject to review by the U.S. Department
of Health and Human Services (HHS) as cognizant agency. HHS coordinates the review
of findings and questioned costs with other Federal agencies. HHS and the other
Federal agencies determine the ultimate allowability of expenditures charged to the
Federal grants. The State is unable to determine the amounts, if any, that Federal
agencies will disallow. Any impact as a result of these matters will be reflected in the
Schedule and recognized by the respective Federal program when amounts can be
determined.
The State is a party to various legal actions arising in the ordinary course of business.
While it is not possible at this time to predict the ultimate outcome of these actions, any
impact as a result of these matters will be reflected in the Schedule and recognized by
the respective Federal program when amounts can be determined.
NOTE 6
DISASTER GRANTS – PUBLIC ASSISTANCE (ASSISTANCE LISTING 97.036)
After a presidentially declared disaster, the U.S. Federal Emergency Management
Agency (FEMA) provides a public assistance grant to reimburse eligible costs
associated with repair, replacement, or restoration of disaster-damaged facilities. The
federal government reimburses in the form of cost-shared grants.
In fiscal year 2022, FEMA approved approximately $1,070,496 of eligible expenditures
that were incurred in a prior year and are included in the Schedule.
NOTE 7
UNEMPLOYMENT INSURANCE
In accordance with U.S. Department of Labor guidance, the State recorded State
Regular Unemployment Compensation (UC) benefits under Assistance Listing #17.225
in the Schedule. The individual State and Federal portions are as follows:
State Regular UC Benefits
1,921,982,371
$
Federal Pandemic Emergency Unemployment Compensation (PEUC)
885,270,664
Federal Extended Benefits (EB)
330,866,838
Federal Pandemic Unemployment Assistance (PUA)
755,848,544
Federal Pandemic Unemployment Compensation (FPUC)
1,897,137,446
Federal Mixed Earner Unemployment Compensation (MEUC)
2,309,300
Federal 1st Week Implementation Benefits
30,954,805
Federal Administration
178,924,863
6,003,294,831
$
STATE OF NEW JERSEY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2022
(26)
NOTE 8
REBATES FROM THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR
WOMEN, INFANTS, AND CHILDREN (WIC)
During fiscal year 2022, the state received cash rebates from infant formula manufacturers
in the amount of $28,186,039 on sales of formula to participants in the WIC program
(Assistance Listing #10.557), which are netted against total expenditures included in the
Schedule. Rebate contracts with infant formula manufacturers are authorized by Code of
Federal Regulations, Title 7: Agriculture, Subtitle B, Chapter II, Subchapter A, Part 246.16a
as a cost containment measure. Rebates represent a reduction of expenditures previously
incurred for WIC food benefit costs. Applying the rebates received to such costs enabled the
State to extend program benefits to more participants than could have been serviced this
fiscal year in the absence of the rebate contract.
NOTE 9
DONATED PERSONAL PROTECTIVE EQUIPMENT (PPE) (UNAUDITED)
Federally funded COVID-19 related donations with an estimated value of $23.2 million were
received by the State during the fiscal year. This amount is not reflected on the Schedule.
NOTE 10 CCDF CLUSTER (ASSISTANCE LISTINGS 93.575 AND 93.596)
Expenditures reported in the Schedule for the Child Care Development Fund (CCDF)
Cluster include the following funding sources:
CCDBG
82,519,475
$
CCDF Mandatory and Matching
42,735,297
$
CCDF Disaster Relief
-
$
CCDF CARES
6,834,591
$
CCDF CRRSA
147,934,882
$
CCDF ARP Supplemental
41,639,788
$
CCDF ARP Child Stabilization Funds
164,300,766
$
485,964,799
$
NOTE 11 HOUSING CHOICE VOUCHER PROGRAM (ASSISTANCE LISTING 14.871)
In accordance with reporting requirements established by U.S. Department of Housing
and Urban Development Notice PIH 2021-25 (HA), Section 8.k., the Schedule includes
$2,706,134 in Emergency Housing Vouchers (EHV) funding issued under the American
Rescue Plan Act of 2021.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(27)
Section I – Summary of Auditors’ Results
Financial Statements
Type of auditors’ report issued by the State of New Jersey State Auditor:
Unmodified
Internal control over financial reporting issued by the State of New Jersey State Auditor on the basic
financial statements:
Material weakness(es) identified?
yes
x
no
Significant deficiency(ies) identified?
x
yes
none reported
Noncompliance material to financial statements noted?
yes
x
no
Internal control over financial reporting on the schedule of expenditures of federal awards:
Material weakness(es) identified?
yes
x
no
Significant deficiency(ies) identified?
yes
x
none reported
Noncompliance material to schedule of expenditures of federal
awards noted?
yes
x
no
Federal Awards
1. Internal control over major federal programs:
Material weakness(es) identified?
x
yes
no
Significant deficiency(ies) identified?
x
yes
none reported
2. Type of auditors’ report issued on compliance for major programs:
See Below
3. Any audit findings disclosed that are required to be reported in
accordance 2 CFR 200.516(a)?
x
yes
no
Dollar threshold used to distinguish between
type A and type B programs:
$51,976,323
Auditee qualified as low-risk auditee?
yes
x
no
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(28)
Section I – Summary of Auditors’ Results (Continued)
Identification of Major Programs
Major Programs
Assistance Listing
Opinion
Pandemic EBT Food Benefits
10.542
Unmodified
Child Nutrition Cluster
10.553, 10.555,
10.556, 10.559,
Qualified
WIC Special Supplemental Nutrition Program for Women, Infants, and
Children
10.557
Unmodified
Child and Adult Care Food Program
10.558
Unmodified
Crime Victim Assistance
16.575
Unmodified
Unemployment Insurance
17.225
Qualified
WIOA Cluster
17.258, 17.259, 17.278
Qualified
Emergency Rental Assistance
21.023
Qualified
Homeowner Assistance Fund
21.026
Qualified
Coronavirus State and Local Fiscal Recovery Funds
21.027
Unmodified
CWSRF Cluster
66.458, 66.482
Unmodified
Title I Grants to Local Educational Agencies
84.010
Unmodified
Special Education Cluster
84.027, 84.173
Unmodified
Education Stabilization Fund
84.425
Unmodified
Aging Cluster
93.044, 93.045, 93.053
Qualified
Immunization Cooperative Agreements
93.268
Qualified
Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
93.323
Qualified
Low-Income Home Energy Assistance
93.568
Qualified
CCDF Cluster
93.575, 93.596
Qualified
Social Services Block Grant
93.667
Unmodified
Medicaid Cluster
93.775, 93.777, 93.778
Unmodified
Disability Insurance/SSI Cluster
96.001
Unmodified
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(29)
Section II – Financial Statement Findings
Finding 2022-001 - Unemployment Compensation Fund (UI Fund)
Significant Deficiency in Financial Statement Reporting
The Department of Labor and Workforce Development (DOLWD) is responsible for preparing complete
and accurate financial statements for presentation to the Department of the Treasury’s Office of
Management and Budget – Financial Reporting (OMBFR). The OMBFR is responsible for including
those financial statements in the state’s Annual Comprehensive Financial Report (ACFR).
The State Auditor presented an adjustment totaling a net of $223,464,474 decreasing the UI Fund’s
Accounts Receivable, net of Allowances for Uncollectibles – Departmental Accounts, and Operating
Revenues – Assessments because of calculation errors and an omission regarding bad debt. This
adjustment decreased the total Net Position by $223,464,474.
Recommendation
The State Auditor recommends the DOLWD conduct a more independent and detailed review and
approval process of the UI Fund’s financial statements, including its calculations of estimates, prior to
submission to the OMBFR.
Response
The OMBFR has consulted with the DOLWD - Financial Reporting (DOLWDFR) and have collectively
agreed that we appreciate the suggestions of the State Auditor. DOLWDFR will expand upon the
existing processes of the Department of Labor & Workforce Development’s (DOLWD’s) Office of Internal
Audit, by engaging the services of an external, third-party firm in conducting an annual, independent,
and detailed review of the Unemployment Compensation Fund’s financial statements prior to the
submission to the OMBFR, beginning in Fiscal Year 2023.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(30)
Section III – Federal Award Findings and Questioned Costs
Matrix of Findings by Federal Agency and Federal Program
Major Federal Program
Federal Agency
(Prefix)
Assistance Listing
#
Finding #
Material
Weakness
Significant
Deficiency
Compliance
Child Nutrition Cluster
U.S.D.A. (10)
10.553, 10.555,
10.556, 10.559,
10.582
2022-002
X
X
Unemployment Insurance
U.S. DOL (17)
17.225
2022-003
X
X
Unemployment Insurance
U.S. DOL (17)
17.225
2022-004
X
X
Unemployment Insurance
U.S. DOL (17)
17.225
2022-005
X
X
Unemployment Insurance
U.S. DOL (17)
17.225
2022-006
X
WIOA Cluster
U.S. DOL (17)
17.258, 17.259,
17.278
2022-007
X
X
Emergency Rental Assistance
U.S. Treas (21)
21.023
2022-008
X
X
Homeowner Assistance Fund
U.S. Treas (21)
21.026
2022-009
X
X
Homeowner Assistance Fund
U.S. Treas (21)
21.026
2022-010
X
X
Special Education Cluster (IDEA)
U.S. DOE (84)
84.027, 84.173
2022-011
X
X
Aging Cluster
U.S. HHS (93)
93.044, 93.045,
93.053
2022-012
X
X
Immunization Cooperative
Agreements
U.S. HHS (93)
93.268
2022-013
X
X
Epidemiology and Laboratory
Capacity for Infectious Diseases
U.S. HHS (93)
93.323
2022-014
X
Epidemiology and Laboratory
Capacity for Infectious Diseases
U.S. HHS (93)
93.323
2022-015
X
X
Epidemiology and Laboratory
Capacity for Infectious Diseases
U.S. HHS (93)
93.323
2022-016
X
X
Low-Income Home Energy
Assistance
U.S. HHS (93)
93.568
2022-017
X
X
Low-Income Home Energy
Assistance
U.S. HHS (93)
93.568
2022-018
X
X
Low-Income Home Energy
Assistance
U.S. HHS (93)
93.568
2022-019
X
X
CCDF Cluster
U.S. HHS (93)
93.575, 93.596
2022-020
X
X
Social Services Block Grant
U.S. HHS (93)
93.667
2022-021
X
X
Medicaid Cluster
U.S. HHS (93)
93.775, 93.777,
93.778
2022-022
X
X
Medicaid Cluster
U.S. HHS (93)
93.775, 93.777,
93.778
2022-023
X
X
Disability Insurance/SSI Cluster
SSA (96)
96.001
2022-024
X
X
Internal Control
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(31)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-002
Prior Year Finding:
No
Federal Agency:
U.S. Department of Agriculture
State Agency:
Department of Agriculture
Federal Program:
Child Nutrition Cluster
Assistance Listing Number:
10.553, 10.555, 10.556, 10.559, 10.582
Award Number and Year:
INJ300304 (10/1/2020-9/30/2022)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency
Act (FFATA)
Type of Finding
Material Weakness in Internal Control Over Compliance,
Material Non-compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Data Universal Numbering
System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action
Date; Date of Report Submission; Subaward Number; Project Description; and Names and
Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated
Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more
of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from
Federal awards; and the public does not have access to this information about the compensation of the
senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of
1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Agriculture (Department) did not report subaward information timely to FSRS during
FY 2022.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(32)
Section III – Federal Award Findings and Questioned Costs (Continued)
Context:
Eight of eight subawards selected for testing were issued on 10/1/2021 and were not reported to FSRS
until 9/30/2022, or 304 days late.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
8
0
8
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$35,407,473
$0
$35,407,473
$0
$0
Cause:
The Department’s internal controls were not sufficient to ensure that subawards were reported timely to
FSRS during FY 2022.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that all required
subawards are reported timely to FSRS no later than the end of the month following the month of
issuance in accordance with FFATA reporting requirements.
Views of responsible officials:
The Department of Agriculture, Division of Food and Nutrition (DOA) was delinquent in submitting
required reporting in the FFFATA Subaward Reporting System (FSRS) due to the inability to make
system updates for the UEI change during the pandemic. This prevented the DOA from pulling data to
submit the reports to the FSRS. The DOA has two technical staff members assigned to query the data
fields required to upload the report. Once the query is complete the data is converted to a CSV file and
uploaded to FSRS. As of December 2022, monthly reporting has resumed. Successful monthly upload
documentation will now be provided and monitored by the Assistant Division Director and Fiscal
Coordinator.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(33)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-003
Prior Year Finding:
2021-007
Federal Agency:
U.S. Department of Labor
State Agency:
Department of Labor and Workforce Development
Federal Program:
Unemployment Insurance, COVID-19 – Unemployment Insurance
Assistance Listing Number:
17.225
Award Number and Year:
UI-35663-21-55-A-34 (10/1/2020 – 12/31/2023), UI-34510-20-60-A-
34 (1/1/2020 – 9/30/2021), UI-35959-21-60-A-34 (1/1/2021 –
9/30/2022), UI-34073-20-55-A-34 (10/1/19 – 12/31/22), UI-32614-
19-55-A-34 (10/1/18 – 12/31/21), UI-37238-22-55-A-34 (10/1/21 –
12/31/24)
Compliance Requirement:
Eligibility
Type of Finding:
Material Weakness in Internal Control Over Compliance, Material
Noncompliance
Criteria or specific requirement:
Compliance: Regular Unemployment Compensation (UC) Program – Under state UC laws, a worker’s
benefit rights depend on the amount of the worker’s wages and/or weeks of work in covered
employment in a “base period.” While most states define the base period as the first four of the last five
completed calendar quarters prior to the filing of the claim, other base periods may be used. To qualify
for benefits, a claimant must have earned a certain amount of wages or have worked a certain number
of weeks or calendar quarters within the base period or meet some combination of wage and
employment requirements. Some states require a waiting period of one week of total or partial
unemployment before UC is payable. A “waiting period” is a non-compensable period of unemployment
in which the worker is otherwise eligible for benefits. To be eligible to receive UC, all states provide that
a claimant must have been separated from suitable work for non-disqualifying reasons under state law
(i.e., not because of such acts as leaving voluntarily without good cause or discharge for misconduct
connected with work). After separation, he or she must be able and available for work, actively seeking
work, legally authorized to work in the United States and must not have refused an offer of suitable
work.
Pandemic Unemployment Assistance (PUA) – PUA provides benefits to covered individuals, who are
those individuals not eligible for regular unemployment compensation (UC or extended benefits under
state or federal law or Pandemic Emergency Unemployment Compensation (PEUC), including those
who have exhausted all rights to such benefits. Covered individuals also include self-employed, those
seeking part-time employment, individuals lacking sufficient work history, and those who otherwise do
not qualify for regular unemployment compensation or extended benefits under state or federal law or
PEUC.
PUA is payable to individuals who are ineligible for regular UC, and are unemployed, partially
unemployed, or unable or unavailable to work due to one of the COVID-19 related reasons identified
Attachment I to UIPL No. 16-20, Change 5. Section 2102(a)(3)(A)(ii)(I) of the CARES Act included 10
specific COVID-19 related reasons. The Department, under the authority provided by Section
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(34)
Section III – Federal Award Findings and Questioned Costs (Continued)
2102(a)(3)(A)(ii)(I)(kk) of the CARES Act, has added additional COVID-19 related reasons; these are
discussed in more detail in Section 4.a. of UIPL No. 16-20, Change 5. While three of these new COVID-
19 related reasons were introduced to states with the publication of UIPL No. 16-20, Change 5 on
February 25, 2021, all COVID-19 related reasons apply retroactively to the beginning of the PUA
program.
Additionally, as described in Section 4.b.i. of UIPL No. 16-20, Change 5, paraphrasing of the COVID-19
related reasons is not permissible; individuals must be permitted to select more than one COVID-19
related reason; individuals must be permitted to select different COVID-19 related reasons each week;
and individuals must be permitted to file and select no COVID-19 related reasons.
Federal Pandemic Unemployment Compensation (FPUC) – To be eligible for FPUC during the program
dates described in Section 8 above, individuals must be eligible to receive at least $1 of underlying
benefits for the week in question (including regular UC, UCFE, UCX, PEUC, PUA, EB, STC, TRA, DUA,
and SEA). FPUC does not require the individual to submit a separate initial application or continued
claim.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
CLA noted that ineligible claimants were being paid unemployment insurance. The Department of Labor
and Workforce Development (DLWD) did not maintain an effective control environment over eligibility
requirements of the New Jersey Local Office Online Payment System (NJLOOPS) for both FPUC and
PUA.
Context:
Sixty claimants were selected for testing which included 24 claimants for Regular UC and Extended
Benefits, 25 claimants for FPUC and 11 claimants for PUA. We noted the following exceptions:
FPUC: 2 of 25 claimants receiving benefits did not receive at least $1 of other benefits for the
payment period.
PUA: 4 of 11 claimants receiving PUA did not identify a COVID-19 reason for their
unemployment and were ineligible for the program.
Questioned costs:
$2,320 - The total amount of benefits received by ineligible recipients:
FPUC: $600
PUA: $1,720
Cause:
The Department began providing benefits to claimants before NJLOOPS had completed the eligibility
determination process.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(35)
Section III – Federal Award Findings and Questioned Costs (Continued)
Effect:
Ineligible claimants received unemployment compensation benefits.
Recommendation:
We recommend the Department review and enhance procedures and controls to ensure that only
eligible claimants receive unemployment compensation benefits.
Views of responsible officials:
The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an
FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been
processed. FPUC payments should not be issued to any claim without the underlying UI payment
being made for the same week. The two FPUC payments issued and noted as exceptions during
eligibility testing will be reviewed independently by DLWD to determine if the payments issued were to
eligible recipients or not.
For the PUA exceptions noted during Eligibility testing, overall the DLWD issued PUA payments to over
680,000 claimants during the COVID-19 pandemic. DLWD had controls in place to require a COVID
related reason to make the claim PUA eligible and the weekly PUA certification required claimants to
choose a COVID related reason for why they were out of work before they could get paid. The PUA
payments in question will be reviewed independently by the DLWD to determine if the payments issued
under PUA were appropriate or if they should have been paid instead under the regular UI program.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(36)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-004
Prior Year Finding:
2021-010
Federal Agency:
U.S. Department of Labor
State Agency:
Department of Labor and Workforce Development
Federal Program:
Unemployment Insurance, COVID-19 – Unemployment Insurance
Assistance Listing Number:
17.225
Award Number and Year:
UI-35663-21-55-A-34 (10/1/2020 – 12/31/2023), UI-34510-20-60-A-
34 (1/1/2020 – 9/30/2021), UI-35959-21-60-A-34 (1/1/2021 –
9/30/2022), UI-34073-20-55-A-34 (10/1/19 – 12/31/22), UI-32614-
19-55-A-34 (10/1/18 – 12/31/21), UI-37238-22-55-A-34 (10/1/21 –
12/31/24)
Compliance Requirement:
Reporting – ETA 9050 and ETA 9052
Type of Finding:
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance: The ETA 9050 – Time Lapse of All First Payments except Workshare report contains
monthly information on first payment time lapse. This report concerns the time it takes states to pay
benefits to claimants for the first compensable week of unemployment. First Payments are considered
timely at 14/21 days, Interstate and Intrastate UI, UCFE, and UCX, full and partial weeks. The report is
due in the ETA National Office on the 20th of the month following the month to which the data relates.
The ETA 9052 – Nonmonetary Determination Time Lapse Detection report contains monthly
information on the time it take states to issue nonmonetary determinations from the date the issues are
first detected by the agency. Single-claimant and multi-claimant nonmonetary determinations are
included in the report. Nonmonetary determinations made by organizational units such as Benefits
Accuracy Measurement (BAM) and Benefit Payment Control (BPC) are also included in the report.
Nonmonetary determinations are considered timely if completed within 21 days. The report is due in the
ETA National Office on the 20th of the month following the month to which the data relates.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
Reports submitted by the Department of Labor and Workforce Development (Department) indicate that
First Payment Time Lapse and Nonmonetary Determinations were untimely during FY 2022.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(37)
Section III – Federal Award Findings and Questioned Costs (Continued)
Context:
Four ETA 9050 and four ETA 9052 reports were selected for testing for the months of September 2021,
November 2021, February 2022, and May 2022. We noted the following exceptions:
ETA 9050: 4 of 4 reports indicate that First Payments were made in more than 14/21 days.
ETA 9052: 4 of 4 reports indicate that nonmonetary determinations were completed in more
than 21 days.
Questioned costs:
None noted.
Cause:
The Department’s procedures and controls were not operating effectively to ensure that first payments
and nonmonetary determinations were completed timely.
Effect:
First Payments and Nonmonetary Determinations were not completed timely as required by the
program.
Recommendation:
We recommend that the Department review its policies and procedures to ensure that it makes first
payments within 14/21 days and that nonmonetary determinations are completed within 21 days per
program requirements.
Views of responsible officials:
New Jersey continues to make progress towards meeting the first payment and non-monetary time
lapse standards as recovery from the historic claims filing related to the COVID-19 pandemic continues.
As indicated in the prior year update, time lapse standards for both first payment and non-monetary
continue to increase from the lows seen during the pandemic. Most recent figures for February 2023
show first payment time lapse at 65.1% and year-to-date at 54.5%, both up from what was reported last
November 2022 at 40% and 36.4%, respectively. Non-monetary time lapse figures have also improved,
with the most recent February 2023 figures reported as 62.6% for the month and 44.1% year-to-date,
which is up from 24.0% for March 2022 and year-to-date at that time of 33.0%).
It is important to note that before the pandemic hit in March 2020, New Jersey current figures at that
time met all first payment and non-monetary time lapse standards for the reporting year that ended
March 2020. The decrease to the timeliness figures is a direct result of the significant increase to
workload volumes resulting from the pandemic and not due to a lack of proper internal controls.
In addition to the high workloads, New Jersey has also implemented strict anti-fraud measures that
include all new claims filed going through an identity proofing process before any payments can be
issued. Delays on the claimant end to complete the verification process – either by the claimant not
going through the process or having difficulty with completing it – also will have a direct impact on first
payment time lapse. Increased education to claimants on the requirement to verify their ID, as well as
increasing the tools and greater availability of support for ID verification will provide claimants with more
options to meet this requirement. New Jersey has worked with our identity verification partner to allow
for three different methods of verification; 1) self-service online, 2) connect to a ‘Trusted Referee’ with
our identity verification partner who will provide the verification online through a video call, or 3) an in-
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(38)
Section III – Federal Award Findings and Questioned Costs (Continued)
person appointment at a walk-in center to complete the process. In addition to what is offered by the
vendor, One Stop centers throughout the State have been equipped with upgraded monitors with
cameras that will allow claimants that are unable to complete the process with our vendor to report to
one of these centers and complete the process there.
As New Jersey continues to work through the backlog of claims, it is anticipated that overall time lapse
figures will continue to improve and for the reporting year ending March 2024 progress will be made
towards meeting the established standards.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(39)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-005
Prior Year Finding:
No
Federal Agency:
U.S. Department of Labor
State Agency:
Department of Labor and Workforce Development
Federal Program:
Unemployment Insurance, COVID-19 – Unemployment Insurance
Assistance Listing Number:
17.225
Award Number and Year:
UI-35663-21-55-A-34 (10/1/2020 – 12/31/2023), UI-34510-20-60-A-
34 (1/1/2020 – 9/30/2021), UI-35959-21-60-A-34 (1/1/2021 –
9/30/2022), UI-34073-20-55-A-34 (10/1/19 – 12/31/22), UI-32614-
19-55-A-34 (10/1/18 – 12/31/21), UI-37238-22-55-A-34 (10/1/21 –
12/31/24)
Compliance Requirement:
Special Tests and Provisions: UI Reemployment Programs: RESEA
Type of Finding:
Significant Deficiency in Internal Control over Compliance, Other
Matters
Criteria or specific requirement:
Compliance: Per 42 U.S. Code § 506 (a) The Secretary of Labor (in this section referred to as the
“Secretary”) shall award grants under this section for a fiscal year to eligible States to conduct a program
of reemployment services and eligibility assessments for individuals referred to reemployment services
as described in section 503(j) of this title for weeks in such fiscal year for which such individuals receive
unemployment compensation. Further, per 42 U.S. Code § 506 (c) (1), In carrying out a State program
of reemployment services and eligibility assessments using grant funds awarded to the State under this
section, a State shall use such funds only for interventions demonstrated to reduce the number of weeks
for which program participants receive unemployment compensation by improving employment
outcomes for program participants.
The UI program serves as one of the principal “gateways” to the workforce system. It is often the first
workforce program accessed by individuals who need workforce services. The WPRS and RESEA
programs serve as UI’s primary programs that facilitate the reemployment needs of UI claimants.
WPRS, which is mandated by Section 303(j) of the Social Security Act, is designed to identify UI
claimants who are most likely to exhaust their benefits and need reemployment assistance to return to
work, and refer them to appropriate reemployment services, such as: job search and job placement
assistance; counseling; testing; provision of occupational and labor market information; and
assessments. WPRS provides reemployment services to selected claimants through an early
intervention process. The number of individuals served under WPRS is determined by the state (and/or
local areas) based on its capacity to serve these individuals. UIPL No. 41-94 provides guidance on
WPRS requirements.
RESEA is authorized by Section 306 of the Social Security Act and builds on the success of RESEA’s
predecessor, the former UI Reemployment and Eligibility Assessment (REA) program. RESEA uses an
evidence-based integrated approach that combines an eligibility assessment for continuing UI eligibility
and the provision of reemployment services. State administration of the RESEA is voluntary and under
certain circumstances may be designed to also satisfy WPRS requirements. Operating guidance for the
RESEA program is updated annually. UIPL 13-21 provides RESEA operating Guidance for FY 2021.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(40)
Section III – Federal Award Findings and Questioned Costs (Continued)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of the
United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
Condition:
The Department of Labor and Workforce Development (Department) did not retain documentation
required by the RESEA program to verify compliance with federal program regulations. Controls were
not working sufficiently to document that a staff member at the Department with knowledge of the
program reviewed eligibility requirements prior to admission of participants to the RESEA program.
Context:
The Department’s policy is that RESEA eligibility interviews must be conducted and eligibility review
forms completed. Both steps are to be reviewed and signed by the participant and an Unemployment
Insurance (UI) staff member who is knowledgeable of the program requirements. For three of sixty
cases selected for testing, the Department was unable to provide a signed RESEA worksheet indicating
the interview had been completed and the claimant was reviewed and approved by a UI supervisor.
Questioned costs:
Undetermined.
Cause:
The Department’s procedures and internal controls are not sufficient to ensure compliance with RESEA
requirements.
Effect:
Without clear documentation supporting a participant’s eligibility and supervisory review, ineligible
participants could go undetected and federal funds could be paid to recipients who do not qualify to
participate in the RESEA program.
Recommendation:
We recommend that policies and procedures be implemented to ensure that internal controls over
RESEA include retention of documentation of each participant’s eligibility and review and approval by a
UI supervisor.
Views of responsible officials:
The RESEA policy and controls presently in place at the Department of Labor and Workforce
Development (DLWD) require eligibility interviews to be conducted and eligibility review forms to be
completed and signed by the participant and UI program representative. DLWD will work to strengthen
and reinforce these controls with responsible staff in an effort to ensure that all interviews are properly
documented and eligibility review forms are signed and maintained on file for future reference and
compliance support.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(41)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-006
Prior Year Finding:
2021-012
Federal Agency:
U.S. Department of Labor
State Agency:
Department of Labor and Workforce Development
Federal Program:
Unemployment Insurance, COVID-19 – Unemployment Insurance
Assistance Listing Number:
17.225
Award Number and Year:
UI-35663-21-55-A-34 (10/1/2020 – 12/31/2023), UI-34510-20-60-A-
34 (1/1/2020 – 9/30/2021), UI-35959-21-60-A-34 (1/1/2021 –
9/30/2022), UI-34073-20-55-A-34 (10/1/19 – 12/31/22), UI-32614-
19-55-A-34 (10/1/18 – 12/31/21), UI-37238-22-55-A-34 (10/1/21 –
12/31/24)
Compliance Requirement:
Information Technology General Controls
Type of Finding:
Significant Deficiency in Internal Control Over Compliance
Criteria or specific requirement:
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). As part of an entity’s internal controls to reasonably ensure
compliance over Federal laws and regulations, an entity must maintain an effective control environment
over their information technology systems used to generate and process information to administer
Federal programs in accordance with the respective rules and regulations that govern the program.
Condition:
The Department of Labor and Workforce Development (Department) did not maintain an effective
control environment over change management of the New Jersey Local Office Online Payment System
(NJLOOPS).
Context:
The NJLOOPS application is an essential system hosted within the Office of Information Technology’s
(OIT) infrastructure used by the Department for unemployment insurance eligibility, claims, benefit
calculations, and payments. NJLOOPS application management is provided by Department staff. We
noted that the prior year finding for internal controls over change management was not corrected.
Specifically, we noted that while tickets have been documented for the sample of changes tested for
the NJLOOPS change management procedures, they do not maintain key information described in the
change management policy. Further, we noted that two individuals have the ability to develop and
promote their own changes to production which poses a segregation of duties issue.
Questioned costs:
Undetermined.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(42)
Section III – Federal Award Findings and Questioned Costs (Continued)
Cause:
Due to limitations on staffing and increased demand on IT resources due to the additional requirements
of the pandemic's unemployment program, the agency was unable to comply with its internal change
management procedures requirements.
Effect:
Noncompliance with the requirements of internal change management procedures and a lack of
segregation of duties could increase the risk of potential unauthorized or unapproved changes
occurring to the application.
Recommendation:
We recommend the Department follow the statewide change management policy and formally
document the request, testing, and approval of all changes related to the NJLOOPS application. We
further recommend that the Department implement segregation of duties controls to prevent the same
user from developing, approving, and promoting a system change to the production environment.
Views of responsible officials:
The Department of Labor and Workforce Development (DLWD) Office of Information Management,
Services & Solutions (OIMSS) will continue its efforts to strengthen and improve staff compliance with
existing controls over program change controls for the New Jersey Local Office Online Payment
System (NJLOOPs). OIMSS management will conduct a meeting with all staff involved in program
changes to reiterate that existing control requirements must be adhered to at all times. DLWD expects
to achieve full compliance with exiting controls by June 30, 2023.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(43)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-007
Prior Year Finding:
No
Federal Agency:
U.S. Department of Labor
State Agency:
Department of Labor and Workforce Development
Federal Program:
WIOA Cluster
Assistance Listing Number:
17.258, 17.259, 17.278
Award Number and Year:
AA-32176-18-55-A-34 (7/1/18 – 9/30/21), AA-33245-19-55-A-34
(7/1/19 – 9/30/22), AA-34783-20-55-A-34 (7/1/20 – 9/30/23), AA-
36334-21-55-A-34 (7/1/21 – 9/30/24)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding:
Material Weakness in Internal Control Over Compliance, Material
Non-compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Unique Entity ID (UEI)
number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of
Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly
Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be
reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross
revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards;
and the public does not have access to this information about the compensation of the senior executives
of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(44)
Section III – Federal Award Findings and Questioned Costs (Continued)
Condition:
Subaward information was not reported timely to FSRS during FY 2022.
Context:
Eight of eight subawards selected for testing were not reported timely to FSRS. Specifically, we noted
the following exceptions:
3 of 3 subawards issued on 7/1/2019 were reported to FSRS on 9/1/2021, or 733 days late.
5 of 5 subawards issued between 7/1/2020 and 2/1/2022 were reported to FSRS on 2/6/2023,
or between 343 and 951 days late.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
8
0
8
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$12,200,927
$0
$12,200,927
$0
$0
Cause:
The Department’s internal controls were not sufficient to ensure that subawards were reported timely to
FSRS during FY 2022.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that all required
subawards are reported timely to FSRS no later than the end of the month following the month of
issuance in accordance with FFATA reporting requirements.
Views of responsible officials:
In recent years, the Department of Labor and Workforce Development (DLWD) has transitioned from a
manual contract process to a web-based system (i.e., SAGE and IGX systems) and has also
experienced changes in personnel responsible for the contracting process. Although progress has
been made with getting the FFATA Reporting Unit access to these automated systems, the DLWD will
continue to enhance the communication between the offices that prepare and approve the
contracts/agreements and the FFATA Reporting Unit. DLWD will also develop procedures to ensure
that timely and accurate information is provided to the FFATA Reporting Unit and that group will also be
included in the grant approval process so the unit is notified timely.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(45)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-008
Prior Year Finding:
No
Federal Agency:
U.S. Department of the Treasury
State Agency:
Department of Community Affairs
Federal Program:
COVID-19 - Emergency Rental Assistance Program
Assistance Listing Number:
21.023
Award Number and Year:
ERA0222 (3/13/2020 – 9/30/2025), ERAE0490 (3/13/2020 -
9/30/2025)
Compliance Requirement:
Reporting
Type of Finding
Material Weakness in Internal Control Over Compliance, Material
Noncompliance
Criteria or specific requirement:
Compliance: Emergency Rental Assistance (ERA) 1 and ERA 2 state, local, and territorial recipients
were required to submit monthly and quarterly reports to the United States Department of the Treasury
(U.S. Treasury). The monthly reports are brief two-question updates through which ERA recipients
provide U.S. Treasury with very high-level counts of the numbers of households receiving assistance
and the amounts of ERA funds distributed. The quarterly reports are in-depth reports with data on an
array of programmatic and financial information to provide transparency in the use and progress of ERA
funds. Monthly reports were required for each month of Fiscal Year 2022 and were due 15 days after
the end of the month. Quarterly reports were required for each quarter of Fiscal Year 2022 and were due
October 29, 2021, February 1, 2022, April 15, 2022, and July 15, 2022.
The Emergency Rental Assistance Program Reporting Guidance published by the U.S. Treasury
identifies several steps in the reporting process:
Recipients gather and maintain required information such as counts of applicants and
participants; amounts paid directly or indirectly to tenants, landlords, and utility/home energy
providers; amounts paid to subrecipients and contractors; and administrative expenses.
Recipients will need to communicate with and gather required information from their
subrecipients and contractors, if applicable.
After manually entering or uploading the report information, Recipients must review the
information entered or submitted to the online reporting forms for any errors and completeness.
Following completion of the report in Treasury’s portal, the Recipient’s designated Authorized
Representative for Reporting must certify to the authenticity and accuracy of the information
provided and formally submit the report to Treasury.
SF-425, Federal Financial Report: As stated in the award terms and conditions of the award agreement,
a final SF-425, Federal Financial Report, is due 90 days after the expiration of the award and should be
submitted electronically. The awardee shall report program outlays and program income on the same
accounting basis (i.e., cash or accrual) that it uses in its normal accounting system. When submitting a
final SF-425, Federal Financial Report, the total matching contribution, if required, should be shown in
the report. The final SF-425 must not show any unliquidated obligations. If the awardee still has valid
obligations that remain unpaid when the report is due, it shall request an extension of time for submitting
the report pursuant to paragraph (c) of this section; submit a provisional report (showing the unliquidated
obligations) by the due date; and submit a final report when all obligations have been liquidated, but no
later than the approved extension date. SF-425, Federal Financial Reports, must be submitted by all
awardees, including Federal agencies and national laboratories.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(46)
Section III – Federal Award Findings and Questioned Costs (Continued)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
As the direct recipient of ERA funds, the Department of Community Affairs (DCA) is responsible for
ensuring the timeliness and accuracy of report submissions. We noted that monthly and quarterly
special reports and quarterly financial reports submitted during FY 2022 did not agree with supporting
documentation.
Context:
We selected eight monthly special reports, four quarterly special reports, and two quarterly financial
reports for testing and we noted that for 13 of 14 reports selected, amounts reported did not agree to
supporting documentation. Specifically, we noted the following exceptions:
Four of four quarterly special reports submitted did not agree to supporting documentation.
Five of eight monthly special reports submitted were missing expenditures that were included in
supporting documentation.
For two of eight monthly reports submitted, DCA was unable to provide supporting
documentation for reported expenditures.
Two of two quarterly financial reports submitted did not agree to supporting documentation.
We noted that the reports contained all required data elements, however, DCA was unable to provide
supporting documentation that agreed with the information reported. We also noted that DCA used the
same data used for the quarterly reports with their submission of the financial SF-425 reports.
Cause:
DCA’s procedures were not sufficient to ensure the accuracy of the reports submitted to the U.S.
Treasury nor that it maintained documentation supporting the information reported. Internal controls did
not prevent or detect the errors.
Effect:
Information reported to the U.S. Treasury may have been inaccurate since it did not agree to supporting
documentation.
Questioned costs:
Undetermined.
Recommendation:
We recommend that DCA implement formal policies and procedures to verify the information reported
and that reports are reviewed for accuracy before they are submitted to U.S. Treasury to ensure that
reports filed are complete and accurate. We further recommend that DCA retains supporting
documentation used when preparing reports, and that this documentation is available for audit.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(47)
Section III – Federal Award Findings and Questioned Costs (Continued)
Views of responsible officials:
U.S. Treasury’s COVID-19 Emergency Rental Assistance Program (ERA) was established in 2021 to
support housing stability throughout the pandemic by providing assistance payments for renters facing
eviction. The Department of Community Affairs (DCA) is a direct recipient of ERA funding for use in
preventing evictions for over 70,000 families throughout the State of New Jersey.
Since the rollout of the new ERA program back in 2021, the reporting requirements and guidance
provided by U.S. Treasury to ERA recipients evolved with numerous changes and updates posted that
also required DCA to change and update systems over time. As the programs continued to evolve so
did DCA’s reporting process. U.S. Treasury initially required monthly reporting starting in April 2021,
through which ERA recipients provided U.S. Treasury with very high-level counts of the numbers of
households receiving assistance and the amounts of ERA funds distributed. The monthly reporting
requirement was then discontinued after the June 30, 2022 submission and thereafter, U.S. Treasury
shifted the ERA Reporting guidance to be focused primarily on the quarterly reporting requirements and
also amended those reporting requirements going forward.
When preparing monthly and quarterly reports, DCA’s data source used has always been the most
reliable one at the time the report was due in order to ensure accuracy of information reported to U.S.
Treasury. As previously stated, DCA’s systems evolved as needed in order to keep up with the
constant changes in reporting requirements for the ERA program.
At the inception of the program, reporting was done from the primary Podio system that obligated
and requested payments.
DCA then worked to build the necessary reports from the MRI system that generated ERA
payments in order to trace payments back to checks issued – representing distributions
incurred.
Most recently DCA has been working to reconcile MRI with the State’s NJCFS accounting
system to further validate the MRI data. Over time variances have been identified that affect
reporting such as void and uncashed check actions.
DCA recognizes the need to ensure supporting documentation used to prepare quarterly and other
required reports for Treasury is captured and retained for audit purposes. DCA continues to build a
three-way reconciliation between the three primary systems to document explainable variances among
the systems, such as timing differences, voids, returned items, etc. DCA has implemented a corrective
action plan to enhance the availability of supporting documentation for ERA Treasury reporting as
detailed in the State’s official corrective action plan.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(48)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-009
Prior Year Finding:
No
Federal Agency:
U.S. Department of the Treasury
State Agency:
Department of Community Affairs
Federal Program:
COVID-19 - Homeowner Assistance Fund
Assistance Listing Number:
21.026
Award Number and Year:
HAF0019 (2021)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding
Material Weakness in Internal Control Over Compliance, Material
Non-compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Unique Entity ID (UEI)
number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of
Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly
Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be
reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross
revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards;
and the public does not have access to this information about the compensation of the senior executives
of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
Subaward information was not reported timely to FSRS during FY 2022.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(49)
Section III – Federal Award Findings and Questioned Costs (Continued)
Context:
One subaward was issued by the Department of Community Affairs (Department) during FY 2022 which
was selected for testing. The subaward was issued on 8/23/2021 and it was not reported to FSRS until
2/7/2022, or 130 days late.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
1
0
1
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$325,965,861
$0
$325,965,861
$0
$0
Cause:
The Department’s internal controls were not sufficient to ensure that subawards were reported timely to
FSRS during FY 2022.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that all required
subawards are reported timely to FSRS no later than the end of the month following the month of
issuance in accordance with FFATA reporting requirements.
Views of responsible officials:
The Department of Community Affairs (DCA) has internal controls and procedures in place to ensure
that required subawards are reported timely to FSRS in accordance with FFATA reporting requirements.
The Homeowner Assistance Fund award received by DCA was unique in that it was planned and fully
reallocated via Memorandum of Understanding (MOU) agreement to a DCA affiliate organization to
administer on the State’s behalf. As a result, the DCA did not initially believe this single reallocation
transaction was subject to FFATA reporting requirements. The Accountability Officer at the affiliate
organization will be involved should another program and contractual arrangement of this type occur and
will ensure that the FSRS reporting is done timely. No further subaward transactions are expected to be
processed by DCA as the full allocation was disbursed to our affiliate organization upon receipt of the
award and execution of the MOU.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(50)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-010
Prior Year Finding:
No
Federal Agency:
U.S. Department of the Treasury
State Agency:
Department of Community Affairs
Federal Program:
COVID-19 - Homeowner Assistance Fund
Assistance Listing Number:
21.026
Award Number and Year:
HAF0019 (2021)
Compliance Requirement:
Subrecipient Monitoring
Type of Finding
Significant Deficiency in Internal Control over Compliance, Other
Matters
Criteria or specific requirement:
Compliance – Per 2 CFR section 200.332(a), all pass-through entities must ensure that every subaward
is clearly identified to the subrecipient as a subaward and includes the following information at the time
of the subaward and if any of these data elements change, include the changes in subsequent subaward
modification. When some of this information is not available, the pass-through entity must provide the
best information available to describe the Federal award and subaward.
Required information includes:
i.
Subrecipient name (which must match the name associated with its unique entity identifier);
ii.
Subrecipient's unique entity identifier;
iii.
Federal Award Identification Number (FAIN);
iv.
Federal Award Date (see the definition of Federal award date in § 200.1 of this part) of award to
the recipient by the Federal agency;
v.
Subaward Period of Performance Start and End Date;
vi.
Subaward Budget Period Start and End Date;
vii.
Amount of Federal Funds Obligated by this action by the pass-through entity to the subrecipient;
viii.
Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity
including the current financial obligation;
ix.
Total Amount of the Federal Award committed to the subrecipient by the pass-through entity;
x.
Federal award project description, as required to be responsive to the Federal Funding
Accountability and Transparency Act (FFATA);
xi.
Name of Federal awarding agency, pass-through entity, and contact information for awarding
official of the Pass-through entity;
xii.
Assistance Listings number and Title; the pass-through entity must identify the dollar amount
made available under each Federal award and the Assistance Listings Number at time of
disbursement;
xiii.
Identification of whether the award is R&D; and
xiv.
Indirect cost rate for the Federal award (including if the de minimis rate is charged) per section
200.414.
2 CFR section 200.332 also states that pass-through entities must:
(d) Evaluate each subrecipient's risk of noncompliance with Federal statutes, regulations, and the
terms and conditions of the subaward for purposes of determining the appropriate subrecipient
monitoring described in paragraphs (d) and (e) of this section, which may include consideration
of such factors as:
1) The subrecipient's prior experience with the same or similar subawards;
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(51)
Section III – Federal Award Findings and Questioned Costs (Continued)
2) The results of previous audits including whether or not the subrecipient receives a Single
Audit in accordance with Subpart F - Audit Requirements of this part, and the extent to which
the same or similar subaward has been audited as a major program;
3) Whether the subrecipient has new personnel or new or substantially changed systems;
4) The extent and results of Federal awarding agency monitoring (e.g., if the subrecipient also
receives Federal awards directly from a Federal awarding agency).
(e) Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for
authorized purposes, in compliance with Federal statutes, regulations, and the terms and
conditions of the subaward; and that subaward performance goals are achieved. Pass-through
entity monitoring of the subrecipient must include:
(1) Reviewing financial and performance reports required by the pass-through entity.
(2) Following-up and ensuring that the subrecipient takes timely and appropriate action on all
deficiencies pertaining to the Federal award provided to the subrecipient from the pass-
through entity detected through audits, on-site reviews, and other means.
(3) Issuing a management decision for audit findings pertaining to the Federal award provided
to the subrecipient from the pass-through entity as required by § 200.521 Management
decision.
(f) Verify that every subrecipient is audited as required by Subpart F - Audit Requirements of this
part when it is expected that the subrecipient's Federal awards expended during the respective
fiscal year equaled or exceeded the threshold set forth in § 200.501 Audit requirements.
Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should be in compliance with guidance in
“Standards for Internal Control in the Federal Government” issued by the Comptroller General of the
United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO).
Condition:
The Department of Community Affairs (Department) did not comply with subrecipient monitoring
requirements for the program.
Context:
The Department issued one subaward under the program and it was noted that the subaward did not
include all required Federal Award information, nor did the Department perform a risk assessment of the
subrecipient or perform monitoring activities for the award.
Questioned costs:
None noted.
Cause:
The Department’s procedures and controls were not effective to ensure the subaward was issued in
compliance with Federal requirements, nor that it performed a risk assessment or timely monitoring of
subrecipient.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(52)
Section III – Federal Award Findings and Questioned Costs (Continued)
Effect:
Excluding the required federal grant award information at the time of the subaward may cause
subrecipients and their auditors to be uninformed about specific program and other regulations that
apply to the funds they receive. There is also the potential for subrecipients to have incomplete
Schedules of Expenditures of Federal Awards (SEFA) in their Single Audit reports, and federal funds
may not be properly audited at the subrecipient level in accordance with the Uniform Guidance.
Not conducting during the award monitoring may result in a failure of the Department to detect that its
subrecipients used subawards for unauthorized purposes, managed them in violation of the terms and
conditions of the subawards, or that subaward performance goals were not achieved.
Without ensuring subrecipients have obtained audits as required by Subpart F, there is an increased risk
that subrecipients could be inappropriately spending and/or inaccurately tracking and reporting federal
funds over multiple year periods, and these discrepancies may not be properly monitored, detected, and
corrected by Department personnel on a timely basis.
Recommendation:
The Department should review and enhance internal controls and procedures to ensure that all required
information is included in all subawards, that proper subrecipient monitoring is conducted, and that
evaluation of independent audits is performed.
Views of responsible officials:
As recommended, the Department of Community Affairs (DCA) will review current procedures to ensure
that all subaward information required by the federal Uniform Guidance is included in all subaward
contracts and grant agreements. The DCA has also reviewed its current subrecipient monitoring
procedures for standard subawards made by the agency and has determined that no internal control
enhancements are required. The HAF award was a unique grant relationship for DCA in that the entire
award was passed through to another New Jersey State government agency that is a direct affiliate of
the Department. Monitoring procedures were determined based on the close working relationship with
our affiliate organization and the fact that less than 1 percent of the grant award was expended through
June 30, 2022. Current procedures included a risk assessment of the subrecipient and performance of
the single audit desk review of the independent audit report. In addition, the Director of Audit, and the
Executive Director of the subgrantee affiliate participate in weekly meetings where updates on the
program status can be determined. DCA’s subrecipient monitoring plan also includes the hiring of an
Integrity Monitor to oversee and monitor the use of the HAF funds as well as compliance with all HAF
program reporting requirements. As program disbursement activity is continuing to increase with the
HAF program(s) created more fully up and running, DCA is currently targeting the Integrity Monitor hire
to take place sometime within the next three to six months.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(53)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-011
Prior Year Finding:
No
Federal Agency:
U.S. Department of Education
State Agency:
Department of Corrections
Federal Program:
Special Education Cluster IDEA
Assistance Listing Number:
84.027 and 84.173
Award Number and Year:
H027A200100 (7/1/2020 – 9/30/2021), H027A200100-20A (7/1/2020
–
9/30/2021),
H027A210100
(7/1/2021
–
9/30/2022),
H027A2100100-21A
(7/1/2021
–
9/30/2022),
H027X210100
(7/1/2021 – 9/30/2022), H173A200114 (7/1/2020 – 9/30/2021),
H173A210114 (7/1/2021 – 9/30/2022), H173X210114 (7/1/2021 –
9/30/2021)
Compliance Requirement:
Allowable Costs/Cost Principles – Time and Effort Reporting
Type of Finding:
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance – Per 2 CFR § 200.430 (a), costs of compensation are allowable to the extent that they
satisfy the specific requirements of this part, and that the total compensation for individual employees:
(1) Is reasonable for the services rendered and conforms to the established written policy of the non-
Federal entity consistently applied to both Federal and non-Federal activities; (2) Follows an
appointment made in accordance with a non-Federal entity's laws or rules or written policies and meets
the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided
in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable.
Per 2 CFR § 200.430 (i), charges to federal awards for salaries and wages must be based on records
that accurately reflect the work performed. These records must:
Be supported by a system of internal control which provides reasonable assurance that the
charges are accurate, allowable, and properly allocated,
Be incorporated into the official records of the non-Federal entity,
Reasonably reflect the total activity for which the employee is compensated by the non-Federal
entity, not exceeding 100% of compensated activities,
Encompass both federally assisted, and all other activities compensated by the non-Federal
entity on an integrated basis, but may include the use of subsidiary records as defined in the
non-Federal entity's written policy,
Comply with the established accounting policies and practices of the non-Federal entity,
Support the distribution of the employee's salary or wages among specific activities or cost
objectives if the employee works on more than one Federal award; a Federal award and non-
Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities
which are allocated using different allocation bases; or an unallowable activity and a direct or
indirect cost activity.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(54)
Section III – Federal Award Findings and Questioned Costs (Continued)
Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with the guidance in "Standards
for Internal Control in the Federal Government" issued by the Comptroller General of the United States
or the "Internal Control-Integrated Framework," issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Corrections (Department) did not maintain adequate support to validate actual
payroll expenses charged to the program. An employee’s timesheet was not approved by the supervisor
on a timely basis.
Context:
The Department was unable to provide documentation that one of forty employee timesheets selected
for testing had been approved by the supervisor on a timely basis.
Questioned costs:
None noted.
Cause:
Controls were not operating effectively to ensure that time and effort reporting was performed in
accordance with federal requirements.
Effect:
There is an increased risk of charging unallowed payroll costs to the program.
Recommendation:
The Department should reevaluate its current process, implement proper controls, and perform
additional training over time and effort reporting. The Department should not seek federal
reimbursement unless it can substantiate that the time and effort was dedicated to the federal program.
Views of responsible officials:
The Department of Corrections (DOC) held a meeting on March 22, 2023 with the Supervisors of
Education where the importance of reviewing and approving all timesheets was reinforced. Staff were
also informed and reminded of progressive discipline for future instances of timesheet approval
omissions. DOC also plans to distribute a memorandum to all Supervisors and Assistant Supervisors of
Education in an effort to ensure that proper controls are implemented for timely supervisory review and
approvals of timesheets as required. Supervisors were also instructed to substantiate via email that
timesheet approval, in their absence, will be approved by DOC Administration at their facility.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(55)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-012
Prior Year Finding:
2021-015
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Human Services
Federal Program:
Aging Cluster and COVID-19 Aging Cluster
Assistance Listing Number:
93.044, 93.045, 93.053
Award Number and Year:
2001NJCMC2-00 (3/20/2020 – 9/30/2022)
2101NJVAC5-00 (4/1/2022 – 9/30/2022)
2001NJHDC2-00 (3/20/2020 – 9/30/2022)
2101NJOASS-00 (10/1/2020 – 9/30/2022)
2101NJOASS-01 (10/1/2020 – 9/30/2022)
2101NJOANS-00 (10/1/2020 – 9/30/2022)
2101NJHDC5-00 (12/27/2020 – 9/30/2022)
2101NJSSC6-00 (4/1/2022 – 9/30/2024)
2001NJOASS-03 (10/1/2019 – 9/30/2022)
2001NJOANS-04 (10/1/2019 – 9/30/2022)
2201NJOASS-02 (10/1/2021 – 9/30/2023)
2201NJOACM-02 (10/1/2021 – 9/30/2023)
2201NJOAHD-02 (10/1/2021-9/30/2023)
2201NJOAPH-02 (10/1/2021-9/30/2023)
2201NJOAFC-02 (10/1/2021-9/30/2023)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding
Material Weakness in Internal Control Over Compliance, Material
Non-compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Data Universal Numbering
System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action
Date; Date of Report Submission; Subaward Number; Project Description; and Names and
Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated
Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more
of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from
Federal awards; and the public does not have access to this information about the compensation of the
senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of
1986.)
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(56)
Section III – Federal Award Findings and Questioned Costs (Continued)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
Subaward information was not reported to FSRS during FY 2022.
Context:
Zero of six subrecipients selected for testing were reported to FSRS during FY 2022. Total subawards
tested were $35,266,155, and $0 was reported as required by FFATA requirements.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
6
6
0
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$35,266,155
$35,266,155
$0
$0
$0
Cause:
The Department was unaware of FFATA reporting requirements and did not report subaward information
to FSRS during FY 2022.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that FFATA
reporting requirements are met. We further recommend the Department develop controls and
procedures to ensure that all required subawards are reported accurately and timely to FSRS no later
than the end of the month following the month of issuance.
Views of responsible officials:
The Department of Human Services, Division of Aging Services (DoAS) continues to work towards
attaining full compliance with Federal Funding Accountability and Transparency Act (FFATA)
requirements. The DoAS continues to consult with the Department and/or other DHS Division fiscal
leadership to finalize the FFATA procedures. These procedures shall include creating a list of all active
first-tier subawards of federal funds DoAS has issued at $30,000 or more. The list will include all the
data fields required for FFATA reporting. DoAS grants management members will ensure each of the
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(57)
Section III – Federal Award Findings and Questioned Costs (Continued)
identified subawards is entered on the Federal Subaward Reporting System (FSRS) website. DoAS
will also revise internal procedures to ensure all future subawards of $30,000 or more are entered on
FSRS within 30 days of award.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(58)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-013
Prior Year Finding:
No
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Health
Federal Program:
Immunization Cooperative Agreements, COVID-19 - Immunization
Cooperative Agreements
Assistance Listing Number:
93.268
Award Number and Year:
NH23IP922594 (7/1/19 – 6/30/24), 5NH23IP922594-02-00 (7/1/19 –
6/30/24), NH23IP922594-03-00 (7/1/19 – 6/30/24)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding
Material Weakness in Internal Control Over Compliance, Material
Noncompliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Unique Entity ID (UEI)
number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of
Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly
Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be
reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross
revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards;
and the public does not have access to this information about the compensation of the senior executives
of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
Subaward information was not reported timely to FSRS during FY 2022.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(59)
Section III – Federal Award Findings and Questioned Costs (Continued)
Context:
Eight of eight subawards selected for testing were not reported timely to FSRS.
Specifically, we noted the following:
7 of 8 subawards were issued on 7/1/2021 and they were not reported to FSRS until 1/24/2023,
or 511 days late.
1 of 8 subawards was issued on 7/1/2022 and was not reported to FSRS until 1/24/2023, or 146
days late.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
8
0
8
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$2,538,062
$0
$2,538,062
$0
$0
Cause:
The Department’s internal controls were not sufficient to ensure that subawards were reported timely to
FSRS.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that all required
subawards are reported timely to FSRS no later than the end of the month following the month of
issuance in accordance with FFATA reporting requirements.
Views of responsible officials:
The Department of Health, Division of Epidemiology, Environmental and Occupational Health’s
(DEEOH), Vaccine Preventable Disease Program (VPDP) will attain full compliance with Federal
Funding Accountability and Transparency Act (FFATA) requirements. The VPDP on boarded a full-time
lead fiscal/grants officer in August 2022 to oversee the Immunization Cooperative Agreements,
including COVID-19 supplemental funding. VPDP fiscal/grants leadership will implement FFATA
procedures for the Immunization Cooperative Agreement. These procedures shall include creating a list
of all active first-tier subawards of federal funds DEEOH has issued at $30,000 or more under this
Cooperative Agreement. The list will include all the data fields required for FFATA reporting. DEEOH
fiscal/grants leadership will ensure each of the identified sub-awards is entered on the FFATA
Subaward Reporting System (FSRS) website within 30 days of award issuance or award amendment.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(60)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-014
Prior Year Finding:
2021-016
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Health
Federal Program:
Epidemiology and Laboratory Capacity for Infectious Diseases (ELC),
COVID-19 - Epidemiology and Laboratory Capacity for Infectious
Diseases (ELC)
Assistance Listing Number:
93.323
Award Number and Year:
6NU50CK000525 (8/1/2019 – 7/31/2024), 6 NU50CK000525-02-03
(8/1/2020
-
7/31/2024),
5NU50CK000525-03-00
(8/1/2019
–
7/31/2024)
Compliance Requirement:
Suspension and Debarment
Type of Finding
Material Weakness in Internal Control Over Compliance
Criteria or specific requirement:
Compliance: Non-federal entities are prohibited from contracting with or making subawards under
covered transactions to parties that are suspended or debarred. “Covered transactions” include
contracts for goods and services awarded under a non-procurement transaction (e.g., grant or
cooperative agreement) that are expected to equal or exceed $25,000 or meet certain other criteria as
specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through
entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered
transactions, unless they are exempt as provided in 2 CFR section 180.215.
When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal
entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations,
is not suspended or debarred or otherwise excluded from participating in the transaction. This
verification may be accomplished by (1) checking the System for Award Management (SAM) Exclusions
maintained by the General Services Administration (GSA), (2) collecting a certification from the entity, or
(3) adding a clause or condition to the covered transaction with that entity (2 CFR section 180.300).
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department could not provide support that it ensured its vendors were not suspended or debarred
before issuing contracts to the entity.
Context:
The suspension and debarment status for eight of eight vendors was not documented.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(61)
Section III – Federal Award Findings and Questioned Costs (Continued)
Questioned costs:
There are no questioned costs related to this finding as the vendors were not federally suspended or
debarred.
Cause:
The Department did not establish effective internal controls for maintaining sufficient evidence that a
suspension and debarment check was completed before issuing contracts to its vendors.
Effect:
If the suspension and debarment status of vendors is not verified when entering into covered
transactions, it is possible that a contract could be issued to an ineligible vendor.
Recommendation:
We recommend the Department implement controls and procedures to ensure suspension and
debarments checks are adequately documented and maintained in the vendor procurement files.
Views of responsible officials:
The New Jersey Department of Health’s (DOH) Central Procurement recently implemented revised
Department policy FMC-23-02 and is working with the DOH divisional procurement staff within the
agency to achieve full compliance. The revised policy circular includes the debarment language
identified as missing in the previous FMC 21-02 policy.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(62)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-015
Prior Year Finding:
2021-017
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Health
Federal Program:
Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC), COVID-19 - Epidemiology and Laboratory Capacity for
Infectious Diseases (ELC)
Assistance Listing Number:
93.323
Award Number and Year:
6NU50CK000525
(8/1/2019
–
7/31/2024),
6NU50CK000525
(8/1/2019 – 7/31/2024), 6NU50CK000525-02-03 (8/1/2020 -
7/31/2024), 5NU50CK000525-03-00 (8/1/2019 – 7/31/2024)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding:
Material Weakness in Internal Control Over Compliance, Material
Non-compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Unique Entity ID (UEI)
number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action Date; Date of
Report Submission; Subaward Number; Project Description; and Names and Compensation of Highly
Compensated Officers. (Names and Compensation of Highly Compensated Officers must only be
reported when the entity in the preceding fiscal year received 80 percent or more of its annual gross
revenues in Federal awards; and $30,000,000 or more in annual gross revenues from Federal awards;
and the public does not have access to this information about the compensation of the senior executives
of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of
1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(63)
Section III – Federal Award Findings and Questioned Costs (Continued)
Condition:
Subaward information was not reported timely to FSRS by the Department of Health (Department)
during FY 2022.
Context:
Twenty-one of twenty-one subawards selected for testing were not reported timely to FSRS. Specifically,
we noted the following:
13 of 13 subawards issued between July and December 2020 were reported to FSRS between
273 and 725 days late.
8 of 8 subawards issued in July and October 2021 were reported to FSRS between 244 and
512 days late.
Of the exceptions noted, 12 subawards totaling $10.6 million were not reported to FSRS until
January 2023.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
21
0
21
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$28,294,095
$0
$28,294,095
$0
$0
Cause:
The Department’s internal controls were not sufficient to ensure that subawards were reported timely to
FSRS.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that all required
subawards are reported timely to FSRS no later than the end of the month following the month of
issuance in accordance with FFATA reporting requirements.
Views of responsible officials:
With the Corrective Action Plan (CAP) previously developed as a result of the prior year 2021 audit
finding, the Department’s Grants Unit with coordination from ELC program fiscal staff added a new
function to the SAGE system that pulls all subaward data for all of ELC using its assigned ALN number
93.323. This system change was implemented in September 2022 that allows SAGE to pull data by
CFDA number and enables the ELC fiscal staff to access all ELC subawards. ELC fiscal staff also has
a reminder set to report at the end of each month, to enter FFATA information into FSRS, and to upload
each report to SharePoint ELC Document Library at the end of each month.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(64)
Section III – Federal Award Findings and Questioned Costs (Continued)
As per the prior year CAP created in September 2022, FFATA information for ELC subawards began
being entered into FSRS on September 1, 2022.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(65)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-016
Prior Year Finding:
No
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Health
Federal Program:
Epidemiology and Laboratory Capacity for Infectious Diseases
(ELC), COVID-19 - Epidemiology and Laboratory Capacity for
Infectious Diseases (ELC)
Assistance Listing Number:
93.323
Award Number and Year:
6 NU62PS924524-01-04 (2018), 18NU62PS924524 (2019), 5
NU62PS924524-03-00 (2020), 6 NU62PS924524-03-02 (2020)
Compliance Requirement:
Allowable Costs/Cost Principles
Type of Finding:
Material Weakness in Internal Control Over Compliance, Material
Noncompliance
Criteria or specific requirement:
Compliance: Per 2 CFR 200.403, except where otherwise authorized by statute, costs must meet the
following general criteria to be allowable under Federal awards:
(a) Be necessary and reasonable for the performance of the Federal award and be allocable under
these principles.
(b) Conform to any limitations or exclusions outlined in these principles or the Federal award
regarding types or amount of cost items.
(c) Be consistent with policies and procedures that apply uniformly to Federally financed and other
activities of the non-Federal entity.
(d) Be accorded consistent treatment. A cost may not be assigned to a Federal award as a direct
cost if any other cost incurred for the same purpose in like circumstances has been allocated to
the Federal award as an indirect cost.
(e) Be determined following generally accepted accounting principles (GAAP), except for state and
local governments and Indian tribes only, as otherwise provided for in this part.
(f) Not be included as a cost or used to meet cost sharing or matching requirements of any other
Federally financed program in either the current or a prior period. See also §200.306 Cost
sharing or matching paragraph (b).
(g) Be adequately documented.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with the guidance in “Standards
for Internal Control in the Federal Government” issued by the Comptroller General of the United States
or the “Internal Control-Integrated Framework,” issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Health (Department) was unable to provide supporting documentation for
disbursement transactions charged to the program.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(66)
Section III – Federal Award Findings and Questioned Costs (Continued)
Context:
The Department was unable to provide supporting documentation for 17 of 60 disbursement
transactions selected for testing. Auditors were not able to verify whether the expenditures were
allowable per program requirements nor that they had been properly reviewed and approved.
Questioned costs:
Questioned costs of $59,466 represent the total of unsupported disbursements charged to the program.
Cause:
The Department’s procedures and controls were not sufficient to ensure that expenditures charged to
the program were allowable and properly documented in accordance with federal requirements.
Effect:
Unallowable and unapproved costs may have been charged to the program.
Recommendation:
We recommend that the Department review its current procedures and controls to ensure that all
expenditures charged to the program are supported by documentation, are properly reviewed and
approved, and that documentation is readily available for audit. The Department should not seek federal
reimbursement unless it can substantiate that disbursements are allowable and properly approved.
Views of responsible officials:
Due to the COVID-19 pandemic and the resulting remote teleworking period that was in place at the
Department of Health (DOH) during the FY 2022 audit period, some payment documents were
approved remotely without physical documents in hand, and the payment documentation for the 17 of
60 ELC general disbursement transactions examined were either not delivered to the office to be filed
yet or have been delivered but misfiled. DOH Central Accounts Payable will review and improve its
current procedures and controls to ensure all physical payment documents are reviewed, approved,
and filed correctly under the current hybrid remote working conditions in place now since the pandemic
ceased.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(67)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-017
Prior Year Finding:
No
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Community Affairs
Federal Program:
Low-Income Home Energy Assistance, COVID-19 - Low-Income
Home Energy Assistance
Assistance Listing Number:
93.568
Award Number and Year:
2102NJE5C6 (3/11/21 – 9/30/22), 2001NJE5C3 (3/27/20 – 9/30/21),
G-1701NJLIEA (10/1/16 – 9/30/18), G-1801NJLIEA (10/1/17 –
9/30/19), 2202NJLIEA (10/1/21 – 9/30/22), 2001NJLIEA (10/1/19 –
9/30/22), 2102NJLIEA (10/1/20 – 9/30/21)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding:
Material Weakness in Internal Control Over Compliance, Material
Non-compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Data Universal Numbering
System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action
Date; Date of Report Submission; Subaward Number; Project Description; and Names and
Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated
Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more
of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from
Federal awards; and the public does not have access to this information about the compensation of the
senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of
1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(68)
Section III – Federal Award Findings and Questioned Costs (Continued)
Condition:
Subaward information was not reported to FSRS during FY 2022.
Context:
Zero of eight subrecipients selected for testing were reported to FSRS during FY 2022. Total subawards
tested were $3,241,668, and $0 was reported as required by FFATA requirements.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
8
8
0
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$3,241,668
$3,241,668
$0
$0
$0
Cause:
During FY 2022, there was a vacancy in the Department’s staffing assigned to FFATA reporting, a
breakdown in the transition responsibilities for the position, and a delay in hiring a replacement.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department cross-train staff to ensure it maintains capacity to meet FFATA
requirements in the event that a staffing vacancy occurs in the future.
Views of responsible officials:
The Department of Community Affairs (DCA) now has a staff member in place with assigned
responsibility for the FFATA reporting in the Federal Subaward Reporting System (FSRS) and other
required federal reporting. To ensure that all required reporting in FSRS is completed timely, the process
and procedures will be fully documented and the LIHEAP program manager will verify completion each
month. DCA will also hire additional staff or cross-train current staff to further support the federal
reporting function.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(69)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-018
Prior Year Finding:
No
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Community Affairs
Federal Program:
Low-Income Home Energy Assistance, COVID-19 - Low-Income
Home Energy Assistance
Assistance Listing Number:
93.568
Award Number and Year:
2102NJE5C6 (3/11/21 – 9/30/22), 2001NJE5C3 (3/27/20 – 9/30/21),
G-1701NJLIEA (10/1/16 – 9/30/18), G-1801NJLIEA (10/1/17 –
9/30/19), 2202NJLIEA (10/1/21 – 9/30/22), 2001NJLIEA (10/1/19 –
9/30/22), 2102NJLIEA (10/1/20 – 9/30/21)
Compliance Requirement:
Cash Management
Type of Finding:
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance: Per 2 CFR 200.302, each state must expend and account for the Federal award in
accordance with state laws and procedures for expending and accounting for the state's own funds. In
addition, the state's and the other non-Federal entity's financial management systems, including records
documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal
award, must be sufficient to permit the preparation of reports required by general and program-specific
terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such
funds have been used according to the Federal statutes, regulations, and the terms and conditions of
the Federal award.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Community Affairs (Department) was not able to provide documentation that
drawdown requests had been properly approved.
Context:
Two of eight drawdown requests selected did not have evidence of supervisory approval prior to
submission of the requests to the federal agency. The amounts drawn down for the two samples were
$282,956 and $74,916 respectively.
Questioned costs:
None noted.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(70)
Section III – Federal Award Findings and Questioned Costs (Continued)
Cause:
The Department’s procedures were not sufficient to ensure that drawdown requests were reviewed and
approved prior to submission. Internal controls did not prevent or detect the errors.
Effect:
Without proper review and approval of drawdown requests, the amounts requested could be inaccurate
which could result in the Department receiving program funds to which it is not entitled.
Recommendation:
We recommend that the Department review and enhance its procedures and controls to ensure that
cash drawdowns are reviewed and approved prior to submission to the federal agency.
Views of responsible officials:
The Department of Community Affairs (DCA) staff responsible for the LIHEAP cash management
function retired prior to this audit period without a proper transition of these tasks and there was also a
delay in refilling the position. As recommended, the DCA has reviewed current procedures and
controls regarding cash drawdown approvals and has developed a Policy Memo that details the
Payment Management System (PMS) drawdown procedures going forward. For each request made, a
Contract Administrator will produce a Business Object report for all transactions to be included in the
drawdown and will send the report to the Program staff for review and approval that the amounts
contained in the report are correct. Once the Program staff review is complete, the approved Business
Object report will be forwarded with a cover email to the Division Fiscal Unit staff responsible for
drawing down the funds in PMS for final processing.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(71)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-019
Prior Year Finding:
No
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Community Affairs
Federal Program:
Low-Income Home Energy Assistance, COVID-19 - Low-Income
Home Energy Assistance
Assistance Listing Number:
93.568
Award Number and Year:
2102NJE5C6 (3/11/21 – 9/30/22), 2001NJE5C3 (3/27/20 – 9/30/21),
G-1701NJLIEA (10/1/16 – 9/30/18), G-1801NJLIEA (10/1/17 –
9/30/19), 2202NJLIEA (10/1/21 – 9/30/22), 2001NJLIEA (10/1/19 –
9/30/22), 2102NJLIEA (10/1/20 – 9/30/21)
Compliance Requirement:
Reporting – Performance and Special Reporting
Type of Finding
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance: LIHEAP Performance Data Form (OMB No 0970-0449) – State grantees must submit this
report by January 31st regarding the prior federal fiscal year. The first section of the report is the
Grantee Survey that covers sources and allocation of funding. The rest of the report is regarding
performance metrics, mostly related to home energy burden targeting and reduction, as well as the
continuity of home energy service.
Carryover and Reallotment Report (OMB No. 0970-0106) – Grantees must submit this report no later
than August 1 indicating the amount expected to be carried forward for obligation in the following fiscal
year and the planned use of those funds. Funds in excess of the maximum carryover limit are subject to
reallotment to other LIHEAP grantees in the following fiscal year and must also be reported.
Annual Report on Households Assisted by LIHEAP (OMB No. 0970-0060) – As part of the application for
block grant funds each year, a report is required for the preceding fiscal year of (1) the number and
income levels of the households assisted for each component and any type of LHEAP assistance
(heating, cooling, crisis, and weatherization); and (2) the number of households served that contained
young children, elderly, or persons with disabilities, or any vulnerable household for each component.
Territories with annual allotments of less than $200,000 and all Indian tribes are required to report only
on the number of households served for each program component.
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Community Affairs (Department) did not submit performance and special reports
timely. The LIHEAP Performance Data Form and the LIHEAP Carryover and Reallotment Report were
submitted after their respective due dates.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(72)
Section III – Federal Award Findings and Questioned Costs (Continued)
Context:
We selected for testing the LIHEAP Performance Data Form, the LIHEAP Carryover and Reallotment
Report, and the Annual Report on Households Assisted by LIHEAP which were due during FY2022. The
following exceptions were noted:
One of one LIHEAP Performance Data Forms was not submitted timely. The report for the
period ending 9/30/2021 was due by 1/31/2022 but was not submitted until 4/22/2022, or 81
days late.
One of one LIHEAP Carryover and Reallotment Reports was not submitted timely. The report
was due by 8/1/2021, but was not submitted until 11/16/2021, or 107 days late.
Questioned costs:
None noted.
Cause:
The Department’s procedures were not sufficient to ensure that the LIHEAP Performance Data Form
and the LIHEAP Carryover and Reallotment Report were submitted timely. Internal controls did not
prevent or detect the errors.
Effect:
Delays in submission of annual performance and special reports could impact the Federal agency’s
ability to manage the program, could result in delays in annual awards, and possible penalties or
sanctions could be imposed by the grantor.
Recommendation:
We recommend that the Department review and enhance its procedures and internal controls to ensure
that performance and special reports are submitted timely.
Views of responsible officials:
All performance and special reports noted in the audit finding must be approved by the Applied Public
Policy Research Institute for Study and Evaluation (APPRISE - U.S. Department of Health and Human
Services (USDHHS) Consultants) before they are submitted to USDHHS. The final reports noted as
exceptions were not submitted on time due to pandemic related complications, staff retirements and
communication issues with APPRISE. As recommended, the Department of Community Affairs (DCA)
has reviewed current reporting procedures and Program staff will be assigned the responsibility to
prepare all reports, work with APPRISE to obtain required approvals, and submit all required reports on
a timely basis. Reporting due dates and deadlines will be documented to ensure that initial reports are
produced timely. The timeframe needed to coordinate with the APPRISE consultants for reviews and
updates to the reports will also be built into the process so that final reports are submitted to USDHHS
by the due date. All reporting procedures will be documented and distributed to LIHEAP program staff.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(73)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-020
Prior Year Finding:
No
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Human Services
Federal Program:
CCDF Cluster, COVID-19 – CCDF Cluster
Assistance Listing Number:
93.575, 93.596
Award Number and Year:
2201NJCCDF (10/1/2021 – 9/30/2024)
2201NJCCDD (10/1/2021 – 9/30/2024)
2101NJCCDF (10/1/2020 – 9/30/2023)
2101NJCCDF (10/1/2020 – 9/30/2023)
2101NJCCDF (10/1/2019 – 9/30/2022)
2001NJCCDF (10/1/2019- 9/30/2022)
2101NJCSC6 (10/1/2020 – 9/30/2023)
Compliance Requirement:
Reporting – Federal Funding Accountability and Transparency Act
(FFATA)
Type of Finding
Material Weakness in Internal Control Over Compliance, Material Non-
compliance
Criteria or specific requirement:
Compliance: Per the Federal Funding Accountability and Transparency Act (FFATA), prime (direct)
recipients of grants or cooperative agreements are required to report first-tier subawards of $30,000 or
more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS).
Reports must be filed in FSRS by the end of the month following the month in which the prime recipient
awards any sub-grant greater than or equal to $30,000. If the initial award is below $30,000 but
subsequent grant modifications result in a total award equal to or over $30,000, the award will be subject
to the reporting requirements as of the date the award exceeds $30,000. If the initial award equals or
exceeds $30,000 but funding is subsequently de-obligated such that the total award amount falls below
$30,000, the award continues to be subject to FFATA reporting requirements.
The following key data elements must be reported: Subawardee Name and Data Universal Numbering
System (DUNS) number; Amount of Subaward (inclusive of modifications); Subaward Obligation/Action
Date; Date of Report Submission; Subaward Number; Project Description; and Names and
Compensation of Highly Compensated Officers. (Names and Compensation of Highly Compensated
Officers must only be reported when the entity in the preceding fiscal year received 80 percent or more
of its annual gross revenues in Federal awards; and $30,000,000 or more in annual gross revenues from
Federal awards; and the public does not have access to this information about the compensation of the
senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (15 U.S.C. §§ 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of
1986.)
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(74)
Section III – Federal Award Findings and Questioned Costs (Continued)
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
Subaward information was not reported to FSRS during FY 2022.
Context:
Zero of eight subrecipients selected for testing were reported to FSRS during FY 2022. Total subawards
tested were $27,226,331, and $0 was reported as required by FFATA requirements.
Transactions
Tested
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
8
8
0
0
0
Dollar Amount of
Tested
Transactions
Subaward not
reported
Report not
timely
Subaward
amount incorrect
Subaward missing
key elements
$27,226,331
$27,226,331
$0
$0
$0
Cause:
The Department was unaware of FFATA reporting requirements and did not report subaward information
to FSRS during FY 2022.
Effect:
Subawards were not reported to FSRS in accordance with FFATA requirements.
Questioned costs:
None noted.
Recommendation:
We recommend that the Department develop internal controls and procedures to ensure that FFATA
reporting requirements are met. We further recommend the Department develop controls and
procedures to ensure that all required subawards are reported accurately and timely to FSRS no later
than the end of the month following the month of issuance.
Views of responsible officials:
The DHS Division of Family Development (DFD) agrees with the audit finding regarding the submission
of subawards to the FFFATA Subaward Reporting System (FSRS).
In accordance with the finding recommendation, the DFD will develop internal controls and procedures
to ensure the timely reporting of all required subawards to FSRS. An initial review of the FSRS by DFD
fiscal staff appeared to indicate that some federal grant data that should be prepopulated on the
website was missing (e.g. Child Care M&M available; discretionary not found). DFD will work with the
necessary federal agencies to ensure that the Division can input the required information for all awards.
Assessment and development of policy and procedures related to this task will take approximately
three months. Staff assignment, training, and submission of federal grant information to the federal
website will occur over the next State fiscal year 2024.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(75)
Section III – Federal Award Findings and Questioned Costs (Continued)
Projected policy and procedures development completion: July 1, 2023.
Assignment and submission of federal reports: June 30, 2024.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(76)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-021
Prior Year Finding:
No
Federal Agency:
Department of Health and Human Services
State Agency:
Department of Children and Families
Federal Program:
Social Services Block Grant
Assistance Listing Number:
93.667
Award Number and Year:
G-2200NJSOSR (10/1/2021 – 3/30/2023)
Compliance Requirement:
Period of Performance
Type of Finding
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance – A non-federal entity may charge only allowable costs incurred during the approved budget
period of a federal award’s period of performance and any costs incurred before the federal awarding
agency or pass-through entity made the federal award that were authorized by the federal awarding
agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of
performance may contain one or more budget periods. Social Services Block Grant funds must be
expended by the state in the fiscal year allotted or in the succeeding fiscal year.
Control – Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Children and Families (Department) charged costs to the program that were incurred
outside of the grant award’s period of performance.
Context:
Four of forty expenditure transactions selected for testing, totaling $842, were incurred prior to the award
start date of October 1, 2021.
Questioned costs:
$842, the total of expenditures charged to the program that were incurred outside of the grant award’s
period of performance.
Cause:
Accounting staff identified and charged program costs to the incorrect grant. The Department’s review
process did not detect the errors nor take timely corrective action.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(77)
Section III – Federal Award Findings and Questioned Costs (Continued)
Effect:
The Department was not compliant with the grant’s period of performance which could result in the
grantor’s disallowance of the costs.
Recommendation:
We recommend that the Department review and enhance its procedures and controls to ensure that
expenditures charged to the program are incurred within the grant’s period of performance.
Views of responsible officials:
The Department of Children and Families (DCF) will review and enhance its procedures and controls to
ensure that expenditures charged to the program are incurred within each grant award’s specified
period of performance.
Further, as the federal SSBG grant award cited has a period of performance that remains open through
September 2023, DCF has adjusted the four transactions that were posted incorrectly to another
available funding source and ensured that all transactions presently recorded are now in compliance
and within the specified period of performance.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(78)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-022
Prior Year Finding:
2021-019
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Human Services
Federal Program:
Medicaid Cluster, COVID-19 – Medicaid Cluster
Assistance Listing Number:
93.775, 93.777, 93.778
Award Number and Year:
2205NJ5MAP (10/1/2021 – 9/30/2022)
2205NJ5ADM (10/1/2021 – 9/30/2022)
Compliance Requirement:
Special Tests and Provisions: Managed Care Financial Audit
Type of Finding
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance: Two types of audits are required for managed care:
1. Audited Financial Reports – The contract with each Managed Care Organization (MCO),
Prepaid Inpatient Health Plan (PIHP), and Prepaid Ambulatory Health Plan (PAHP) must require
them to submit to the state an audited financial report specific to the Medicaid contract on an
annual basis. These audits must be conducted in accordance with generally accepted
accounting principles and generally accepted auditing standards (42 CFR section 438.3(m)).
2. Periodic Audits – Effective no later than for rating periods for contracts starting on or after July
1, 2017, the state must periodically, but no less frequently than once every three years, conduct,
or contract for an independent audit of the accuracy, truthfulness, and completeness of the
encounter and financial data submitted by, or on behalf of each MCO, PIHP, and PAHP and
post the results of these audits on its website (42 CFR section 438.602(e) and (g); May 6, 2016,
Federal Register (81 FR 27497); OMB No. 0938-0920).
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Human Services (Department) received audit reports from its MCOs, but these
reports were Agreed Upon Procedures (AUP) reports which were not conducted in accordance with
generally accepted accounting principles and generally accepted auditing standards.
Context:
Five of five MCO audit reports received by DMAHS were AUP reports. An AUP engagement is one in
which a practitioner is engaged by a client to issue a report of findings based on specific procedures
performed on subject matter. The client engages the practitioner to assist specified parties in evaluating
subject matter or an assertion as a result of a need or needs of the specified parties.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(79)
Section III – Federal Award Findings and Questioned Costs (Continued)
In an engagement performed under this section, the practitioner does not perform an examination or a
review, and does not provide an opinion or negative assurance. Therefore, AUP reports do not fulfill the
requirement that the audit is conducted in accordance with generally accepted accounting principles
and generally accepted auditing standards.
Questioned costs:
Undetermined.
Cause:
The Department held the opinion that AUP reports were sufficient to meet the requirement of obtaining
a financial statement audit report per the flexibility given to States in Medicaid and CHIP Managed Care
Final Rule (CMS-2390-F) Frequently Asked Question number Q10, dated November 10, 2016.
Effect:
The Department is unable to ensure that its MCOs were audited in accordance with generally accepted
accounting principles and generally accepted auditing standards. Failure to obtain qualified audit
reports from its MCOs would result in DMAHS being unaware of deficiencies, corrective action plans or
unmet requirements which would be identified as a result of qualified audits.
Recommendation:
We recommend that the Department update its contracts with its MCOs to remove the language
specifying the requirement for an audit conducted specifically in accordance with generally accepted
accounting principles and generally accepted auditing standards and instead to specify that an AUP
report is acceptable per guidance provided under Medicaid and CHIP Managed Care Final Rule (CMS-
2390-F) Frequently Asked Question number Q10.
Views of responsible officials:
Based on this audit finding recommendation, Section 7.25.1(B) of the MCO Contract has been updated
effective January 2023. The update removes language requiring audits in accordance with generally
accepted accounting principles and generally accepted auditing standards and specifies that an AUP
report is acceptable per guidance provided under Medicaid and CHIP Managed Care Final Rule (CMS-
2390-F) Frequently Asked Question number Q10.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(80)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-023
Prior Year Finding:
2021-014
Federal Agency:
U.S. Department of Health and Human Services
State Agency:
Department of Human Services
Federal Program:
Medicaid Cluster, COVID-19 – Medicaid Cluster
Assistance Listing Number:
93.775, 93.777, 93.778
Award Number and Year:
2205NJ5MAP (10/1/2021 – 9/30/2022)
2205NJ5ADM (10/1/2021 – 9/30/2022)
Compliance Requirement:
Special Tests and Provisions: Provider Eligibility
Type of Finding
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance: In order to receive Medicaid payments, providers must: (1) be licensed in accordance
with federal, state, and local laws and regulations to participate in the Medicaid program (42 CFR
sections 431.107 and 447.10; and Section 1902(a)(9) of the Social Security Act (42 USC 1396a(a)(9));
(2) screened and enrolled in accordance with 42 CFR Part 455, Subpart E (sections 455.400 through
455.470); and make certain disclosures to the state (42 CFR Part 455, Subpart B, sections 455.100
through 455.106). Medicaid managed care network providers are subject to the same disclosure,
screening, enrollment, and termination requirements that apply to Medicaid fee-for-service providers in
accordance with 42 CFR Part 438, Subpart H. Providers who have been barred from participation by
the Office of the Inspector General (OIG) exclusion list are not eligible to be enrolled in the Medicaid
program. (See 42 CFR 455.436).
Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity
is managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department Human Services (the Department) did not maintain documentation to support provider
eligibility to participate in the Medicaid program. The provider eligibility requirement is administered by a
3rd-party that is required to determine and document the provider’s eligibility with the Department’s
requirements. Provider files were incomplete, containing expired licenses or missing key documentation
supporting eligibility.
Context:
The Department contracts with a 3rd party provider to manage medical provider eligibility. The 3rd party
provider is responsible for verifying providers’ license statuses and that providers meet health and safety
standards. We noted that medical provider files maintained by the 3rd party contractor did not
consistently support providers’ eligibility and compliance with the State’s health and safety standards in
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(81)
Section III – Federal Award Findings and Questioned Costs (Continued)
accordance with federal and state requirements. A sample of 60 provider files was selected for testing
and the following exceptions were noted:
Six of sixty provider files did not have an active license on file. The provider licenses expired
and an active license was not obtained and updated in the provider files.
One of sixty provider files did not contain the provider agreement checklist.
Questioned costs:
Undetermined.
Cause:
Internal controls of the 3rd party provider were ineffective in ensuring that all required documentation
was obtained and maintained in provider files. The Department’s controls over the 3rd party contractor
were ineffective in detecting the errors.
Effect:
Medicaid claims may be paid to ineligible providers which may result in unallowed program costs. The
Department is not compliant with the State’s plan for Medicaid.
Recommendation:
We recommend that the Department continue to review the 3rd party provider’s procedures for
determining and documenting provider eligibility and compliance with related State and Federal
requirements. The Department should periodically review provider files to determine if all required
documentation is maintained in the files.
Views of responsible officials:
The Department of Human Services’ Division of Medical Assistance and Health Services (DMAHS) has
unsuccessfully attempted to gain access to data files that would provide current licensure data to our
contracted vendor from the State’s licensing agencies. Continuing efforts to outreach providers by
sending a license expiration letter to providers 45 days prior to the license expiration date have also
been less than successful. Access concerns have discouraged the State’s efforts to deny claims
because of expired licenses. It is important to note that the State’s expectations are that providers are
properly licensed, but have failed to communicate this information to our contracted vendor. Licensure
information for all enrolling providers and those subject to revalidation are also screened in accordance
with ACA requirements.
DMAHS efforts to achieve compliance with regard to provider licensing in coordination with the State’s
contracted vendor remains ongoing and the importance of having license information on file for the
providers being enrolled will again be reiterated and reinforced through communications with the
contracted vendor and their staff. The vendor has also been approved to continue taking screenshots
of providers’ licensing information from licensing websites in lieu of the provider sending in paper
copies. These ongoing efforts and actions will help to ensure that licensing information is captured and
maintained for each provider and the State’s compliance with documenting provider licensing continues
to improve and move towards full compliance in future periods.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(82)
Section III – Federal Award Findings and Questioned Costs (Continued)
Reference Number:
2022-024
Prior Year Finding:
No
Federal Agency:
Social Security Administration
State Agency:
Department of Labor and Workforce Development
Federal Program:
Disability Insurance/SSI Cluster
Assistance Listing Number:
96.001
Award Number and Year:
04-2204NJD100 (10/1/2021 – 3/30/2023), 04-2104NJD100 (10/1/2020
– 3/30/2022), 04-2004NJD100 (10/1/2019 – 3/30/2021)
Compliance Requirement:
Period of Performance
Type of Finding
Significant Deficiency in Internal Control Over Compliance, Other
Matters
Criteria or specific requirement:
Compliance – A non-federal entity may charge only allowable costs incurred during the approved budget
period of a federal award’s period of performance and any costs incurred before the federal awarding
agency or pass-through entity made the federal award that were authorized by the federal awarding
agency or pass-through entity (2 CFR sections 200.308 200.309 and 200.403(h)). A period of
performance may contain one or more budget periods.
Control – Per 2 CFR Section 200.303(a), a non-Federal entity must: Establish and maintain effective
internal control over the Federal award that provides reasonable assurance that the non-Federal entity is
managing the Federal award in compliance with Federal statutes, regulations, and the terms and
conditions of the Federal award. These internal controls should comply with guidance in “Standards for
Internal Control in the Federal Government” issued by the Comptroller General of the United States or
the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO).
Condition:
The Department of Labor and Workforce Development (Department) charged costs to the program that
were incurred outside of the grant award’s period of performance.
Context:
Two of six expenditure transactions selected for testing, totaling $435, were incurred prior to the award
start date of October 1, 2021.
Questioned costs:
$435, the total of expenditures charged to the program that were incurred outside of the grant’s period of
performance.
Cause:
Accounting staff identified and charged program costs to the incorrect grant. The Program’s review
process did not detect the errors nor take timely corrective action.
STATE OF NEW JERSEY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2022
(83)
Section III – Federal Award Findings and Questioned Costs (Continued)
Effect:
The Department was not compliant with the grant’s period of performance which could result in the
grantor’s disallowance of the costs.
Recommendation:
We recommend that the Department review its procedures to ensure that expenditures charged to the
program are incurred within the grant’s period of performance.
Views of responsible officials:
The New Jersey Department of Labor and Workforce Development (DLWD) has a policy in place for
processing tuition reimbursements that are performed by the Department’s Accounts Payable unit. The
policy was reviewed by the Office of Finance & Accounting (F&A) and internal control procedures were
enhanced to ensure that fiscal cutoff measures were appropriately addressed. Tuition reimbursement
procedures include having the requests forwarded to the responsible Supervising Analyst in the
Appropriations/Accounting unit for final review and approval to ensure the proper fiscal period is
charged. The correcting transactions were completed during the Single Audit timeframe to remediate
the findings by charging and reimbursing the proper fiscal year accounts. The DLWD will continue its
efforts to ensure compliance and that all charges applied to Federal awards are within the specified
period of performance going forward.File and source
- File
- REPORT_NJ-OMB_State-Single-Audit-FY2022-CRF-SLFRF-COVID-UI_2023.pdf
- Size
- 709,441 bytes
- SHA-256
- 3ced180418581baa8e2f8d8aa812df9bd0b35ede33931d37bd69910eec6d8cbe
- Original
- www.nj.gov