N.J. Admin. Code § 7:24A-4.20

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:24A-4.20 - Accounting procedures, financial records and auditing requirements

(a) The borrower's accounting system must be adequate to identify all costs associated with the project.

(b) The borrower must maintain records, books, documentation, and other evidence and appropriate accounting procedures and practices to reflect:

1. The total cost of the project, including all eligible costs;

2. The amount, date of receipt, and disposition of all assistance received for the project, including both Department loan assistance and any other grants, contributions, gifts, or donations; and

3. In the case of more than one loan, separate records must be maintained for each project.

(c) All financial records of the borrower and of its contractors and subcontractors shall conform to generally accepted accounting principles.

(d) The Department, or its duly authorized representative or representatives, shall have access to all records, books, documents and papers pertaining to the loan award agreement and/or the approved project for audit examination, excerpt and transcription purposes. All records shall be maintained and made available to the Department during the performance of the approved project and for three years after the date of final disbursement by the Department or the date of audit resolution, whichever is later. The borrower shall reference N.J.A.C. 7:24A-4.20(d) in all project-related contracts.

(e) The borrower shall conduct annual audits in conformance with the Federal Single Audit Act of 1984, P.L. 98-502, Federal OMB Circular A-128, "Audits of State and Local Governments," and State OMB Circular 87-11 "Single Audit Policy," incorporated herein by reference. The documents may be obtained from the Department.

(f) Each audit report must document the borrower's compliance with the material terms and conditions of the loan award agreement and applicable laws and regulations.

(g) Each audit report shall contain an itemized schedule of all of the borrower's State grant and other financial assistance that identifies grantor agency, program title, State account number, total amount of assistance, and total disbursement to date.

(h) The Department may adjust the borrower's account or final disbursement, if necessary, upon the Department's completion of its review of the annual audit reports.

N.J. Admin. Code § 7:24A-4.20