Single Audit of the State of New Jersey for the Fiscal Year Ended June 30, 2023 (SSA OIG, June 12, 2024)

Summary

A Social Security Administration Office of the Inspector General memorandum dated June 12, 2024, Refer To 772404, from Michelle L. Anderson, Assistant Inspector General for Audit, to Gina Clemons, Deputy Commissioner for Analytics, Review, and Oversight. The subject is the Single Audit of the State of New Jersey for the Fiscal Year Ended June 30, 2023, conducted by CliftonLarsonAllen LLP, covering SSA's portion. The memorandum states that the single audit reported the New Jersey Disability Determination Services did not have effective procedures to ensure it completed periodic reviews of consultative examination providers timely. It describes the corrective action plan and lists recommendations for SSA to ensure the New Jersey DDS completes the reviews.

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Full text

MEMORANDUM


Date:   June 12, 2024                                                               Refer To:     772404

To:     Gina Clemons
        Deputy Commissioner
        for Analytics, Review, and Oversight


From:   Michelle L. Anderson
        Assistant Inspector General for Audit

Subject: Single Audit of the State of New Jersey for the Fiscal Year Ended June 30, 2023

        This memorandum presents the Social Security Administration’s (SSA) portion of the single
        audit of the State of New Jersey for the Fiscal Year ended June 30, 2023. 1 The audit firm
        CliftonLarsonAllen LLP conducted the audit. Our objective was to report internal control
        weaknesses, noncompliance issues, and unallowable costs identified in the single audit to SSA
        for resolution action.

        BACKGROUND
        A single audit is an organization-wide financial statement and Federal awards audit of a
        non-Federal entity that expends $750,000 or more in Federal funds in 1 year. It is intended to
        assure the Government that a non-Federal entity has adequate internal controls in place and is
        generally in compliance with program requirements. Non-Federal entities typically include state
        and local governments, Indian tribes, universities, and nonprofit organizations.

        For single audit purposes, the General Services Administration maintains a list of all Federal
        programs in the Federal Assistance Listing. SSA’s Disability Insurance and Supplemental
        Security Income programs are identified under listing number 96. SSA is responsible for
        resolving single audit findings reported under this listing number.

        The New Jersey Disability Determination Services (DDS) performs disability determinations
        under SSA’s Disability Insurance and Supplemental Security Income programs in accordance
        with Federal regulations. SSA reimburses the DDS for 100 percent of allowable costs.
        The New Jersey Department of Labor and Workforce Development is the New Jersey DDS’
        parent agency.




        1 CliftonLarsonAllen, LLP, State of New Jersey Single Audit Report Year Ended June 30, 2023 (April 2023).
2 | Gina Clemons
June 12, 2024

RESULTS
The single audit reported the New Jersey DDS did not have effective procedures to ensure it
completed periodic reviews of consultative examination providers timely. 2 In response to the
single audit, the New Jersey Department of Labor and Workforce Development’s corrective
action plan indicates each DDS professional relations officer will be responsible for reviewing
8 to 10 providers each month until all have been completed. Additionally, the plan required that
DDS Chief of Professional Relations submit a monthly report to the DDS Assistant Director
detailing the reviews and any findings.

RECOMMENDATIONS
We recommend SSA ensure the New Jersey DDS:

1. Completed all consultative examination provider reviews for Fiscal Year 2023.

2. Has adequate procedures to ensure it timely completes reviews of consultative examination
   providers.

The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards requires that Federal awarding agencies issue a management decision on findings
within 6 months of acceptance of the audit report by the Federal Audit Clearinghouse. The
Federal Audit Clearinghouse accepted the single audit of the State of New Jersey on
April 15, 2024.

Please send copies of the final Audit Clearance Document and any questions to
OIG.Audit.Division.7@ssa.gov.

Attachment




2 CliftonLarsonAllen, LLP, State of New Jersey Single Audit Report Year Ended June 30, 2023 (April 2023),

Finding 2023-027.
Attachment 1
Attachment 2


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