New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 6 - ANNUAL AUDIT
Section 5:30-6.6 - Corrective action plan; summary schedule of prior year audit findings

Universal Citation: NJ Admin Code 5:30-6.6

Current through Register Vol. 56, No. 18, September 16, 2024

(a) The local unit is responsible for follow-up and corrective action on all audit findings. If the local unit's annual audit contains one or more findings, the local unit shall prepare a corrective action plan to address each finding. No later than 60 days from the date on which the registered municipal accountant filed the annual audit with the local unit, a corrective action plan shall be adopted by the governing body and placed on file with the clerk of the board of county commissioners, the municipal clerk, or the secretary of the regional service agency, as applicable. For each finding, the plan shall include:

1. The reference number assigned by the registered municipal accountant;

2. The corrective action planned and the anticipated completion date;

3. The contact person(s) responsible for the corrective action; and

4. For each audit finding with which the governing body disagrees, or believes corrective action is not required, an explanation with specific reasons.

(b) The local unit must also prepare a summary schedule of prior audit findings, if any. The summary schedule must include the reference numbers assigned to each finding by the registered municipal accountant, along with the fiscal year in which the finding initially occurred. No later than 60 days from the date on which the registered municipal accountant filed the annual audit with the local unit, a summary schedule of prior audit findings shall be adopted by the governing body and placed on file with the clerk of the board of county commissioners, the municipal clerk, or the secretary of the regional service agency, as applicable.

1. When an audit finding in the prior year annual audit has been fully corrected and is not repeated in the current year annual audit, the summary schedule need only list the audit findings and state that corrective action was taken.

2. When audit findings either remain uncorrected or were only partially corrected, the summary schedule must describe the reason or reasons for the findings' recurrence and planned corrective action, and any partial corrective action already taken.

3. When corrective action taken is significantly different from corrective action previously reported in a corrective action plan or in the management decision of a State agency, Federal agency, or a pass-through entity, the summary schedule must provide an explanation with specific reasons.

4. When the local unit believes one or more audit findings are no longer valid or do not warrant further action, the reasons for this position must be described in the summary schedule. A valid reason for considering an audit finding as not warranting further action is that all of the following have occurred:
i. Two years have passed since the audit report in which the State or Federal award finding occurred was submitted to the Federal Audit Clearinghouse or the Division of Local Government Services;

ii. The State agency, Federal agency, or pass-through entity is not currently following up with the local unit on the audit finding; and

iii. A management decision was not issued.

(c) When a single audit is required pursuant to 2 CFR Part 200 Subpart F or New Jersey Office of Management and Budget Circular 15-08 that results in one or more findings, the local unit shall prepare a separate corrective action plan and summary schedule of prior audit findings relative to the State or Federal awards.

(d) Each corrective action cited in a corrective action plan shall be initiated within six months after the registered municipal accountant files the annual audit with the local unit.

(e) Members of the local governing body who, after the date fixed for compliance with this section, fail or refuse to obey an order of the Director to comply, shall be subject to the penalty provisions at N.J.S.A. 52:27BB-52.

Disclaimer: These regulations may not be the most recent version. New Jersey may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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