N.J. Admin. Code § 12:5-1.3

Current through Register Vol. 56, No. 17, September 3, 2024

Section 12:5-1.3 - Audit resolution procedures

(a) Upon receipt of a final audit report, the Controller shall promptly review the audit and issue to the grantee/contractor/subrecipient, within 60 days of receipt of the final audit report, a written determination setting forth audit disallowances and/or proposed sanctions.

(b) If a grantee/contractor/subrecipient disagrees with the initial determination of the Director, the grantee/contractor/subrecipient may submit to the Director, within 30 days of the receipt of the initial determination, a written request for an informal review.

1. Each grantee/contractor/subrecipient who is requesting an informal review shall also submit any data and arguments that support the grantee's/contractor's/subrecipient's position within 30 days of the request for an informal review.

2. If a grantee/contractor/subrecipient does not request an informal review within the timeframe set forth in this subsection, the initial determination of the Director may become the final determination.

(c) The Director shall issue a written final determination in the matter to the grantee/contractor/subrecipient no later than 180 days after the final audit report was received. The final determination shall:

1. Indicate that efforts to informally resolve matters contained in the initial determination have either been successful or unsuccessful;

2. List those matters upon which the parties continue to disagree;

3. List any modifications to the factual findings and conclusions set forth in the initial determination; and

4. List any sanctions and required corrective actions; and set forth the appeal rights.

(d) If the grantee/contractor/subrecipient disagrees with the final determination of the Director, the grantee/contractor/subrecipient may submit to the Director within 10 days from the date of receipt of the final determination, a written request for a formal hearing to be held in accordance with the Administrative Procedure Act, 52:14B-1 et seq., and the Uniform Administrative Procedure Rules, N.J.A.C. 1:1.

(e) Any failure on the part of the Director to issue determinations within the timeframes set forth in this subchapter will not relieve the grantee/contractor/subrecipient from liability for any audit disallowances and/or sanctions.

N.J. Admin. Code § 12:5-1.3

Amended by R.1998 d.496, effective 10/5/1998.
See: 30 N.J.R. 2832(a), 30 N.J.R. 3657(a).
Substituted "Director" for "Controller" throughout.
Amended by R.2004 d.17, effective 1/5/2004.
See: 35 N.J.R. 4441(a), 36 N.J.R. 196(a).
Substituted "Director" for "Controller" throughout.