N.J. Admin. Code § 16:63-6.1

Current through Register Vol. 57, No. 1, January 6, 2025

Section 16:63-6.1 - Audit and recordkeeping requirements for State-funded projects

(a) Provisions for audit of grants to grantees are as follows:

1. The grantee shall comply with the State of New Jersey Single Audit Policy defined by the New Jersey Department of the Treasury, Office of Management and Budget (New Jersey Circular 15-08-OMB) and the Single Audit Act of 1984 (Federal OMB Circular A-133), incorporated herein by reference, as amended and supplemented. Copies of these circulars can be obtained from the New Jersey Department of the Treasury, Office of Management and Budget at

www.state.nj.us/infobank/circular/circindx.htm and www.whitehouse.gov/OMB or by mail from:

New Jersey Department of the Treasury

Office of Management and Budget

PO Box 221

Trenton, NJ 08625-0221

and

Office of Management and Budget

New Executive Office Bldg.

725 17th St. N.W.

Washington, DC 20503

2. An audit of the grantee shall be performed by an independent auditor or public accountant who meets the independence standards specified in generally accepted government auditing standards in conformity with the State audit policy within 12 months of receipt of the final State payment. Additional annual audits of the grantee may be required, as provided for in the terms of the memorandum of agreement between the grantee and the Department.

3. Department agreements governed by this chapter shall be subjected to audit compliance tests in accordance with requirements delineated in the Department of Treasury, OMB publication entitled "New Jersey Grants Management Information Systems Manual."

4. Audit costs incurred by grantees to comply with this subchapter are not reimbursable.

(b) General provisions for audit and recordkeeping requirements are as follows:

1. Each grantee shall keep records as the Commissioner may prescribe, including records which fully disclose the amount and the disposition of the proceeds of the aid, the total cost of the plan or program in connection with which the grant is given or used, and the amount and nature of that portion of the cost of the plan or program supplied by other sources, and records as will facilitate an effective audit.

2. The Commission or any duly authorized representatives, shall have access to any books, documents, papers, and records that are pertinent to aid received under this chapter, for the purpose of audit and examination. This includes progress audits at any time during the project.

3. To fulfill statutory and regulatory requirements, each grantee shall establish and maintain an adequate accounting record for each individual project, which will allow the State to determine the allowability of costs incurred for the project.

4. Each grantee shall maintain effective control over and accountability for all funds, property, and other assets. Grantees shall adequately safeguard all assets and shall assure that they are used solely for authorized purposes.

5. Each grantee shall establish procedures to minimize the time elapsing between the transfer of funds from the State and the disbursement by the grantee, whenever funds are advanced by the State. Should this elapsed time exceed the standards of this chapter, the Commissioner may require the return of all interest earned on those payments made by the State.

6. The grantee shall include in each contract, a clause which allows the Commissioner access to the contractor's records for purposes of accounting and audit.

(c) Retention of records shall be as follows:

1. Each grantee shall obtain and retain, for a period of three years after the date of submission of the final State payment, documentary evidence such as invoices, cost estimates, appraisal reports and negotiation documents relating to each item of project cost. These documents typically include, but are not limited to, vendor's invoices, applicable purchase orders, receiving reports, inventory records, methods of pricing, returns, production cost reports, weight tickets, physical inventories, production cost accounts, final inspection report showing acceptance of the project, and a record of disposition or correction of all unsatisfactory work, if any.

2. Each grantee shall retain for a period of three years after the date of the submission of the final State payment, evidence of all payments for items of project costs including vouchers, canceled checks or warrants, and receipts for cash payments.

3. If audit findings have not been resolved, records shall be retained until the findings have been resolved.

N.J. Admin. Code § 16:63-6.1

Amended by 49 N.J.R. 1100(a), effective 5/1/2017