BOROUGH OF FORT LEE MUNICIPAL OFFICE

Finding 2020-001 Information on the federal program: U.S. Department of Justice Equitable Sharing Program, CFDA #16.922, Grant Period 1/1/20-12/31/20 Compliance/Internal Control over Compliance: Activities Allowed/Allowable Costs Criteria or specific requirement: Agencies must contact MLARS (Money Laundering and Asset Recovery Section) prior to using Department of Justice equitable sharing funds for all improvement and expansion projects. For example, the construction of a new facility or minor renovations including drywall, electrical, HVAC replacements, and internal modifications to an existing facility. Condition: The Borough did not contact MLARS prior to utilizing Department of Justice Equitable sharing funds for various minor renovation expenses. Questioned costs: $47,745 Context: During our audit testing, we noted that the Police Department was required to obtain approval from MLARS prior to utilizing Department of Justice equitable sharing funds for all improvement and expansion projects no matter how minor. Correspondence with the Department of Justice confirmed that the questioned costs would not have been approved nor can they retroactively be approved. Effect: By not obtaining prior approval from MLARS for all improvement and expansion projects in accordance with the compliance requirements of the Federal OMB Compliance Supplement for Single Audits of State and Local Governments, the funds were spent on projects which would not have been approved by MLARS. Cause: The Borough of Fort Lee Police Department did not obtain prior approval from MLARS for all improvement and expansion projects. Recommendation: The Borough of Fort Lee Police Department should implement policies and procedures to ensure compliance with federal program requirements. Management?s response: The Borough of Fort Lee Police Department will ensure that approvals are obtained for all renovation or expansion projects to be paid from Justice forfeiture funds and the disallowed costs of $47,745 will be refunded to the Justice equitable sharing account in 2021.

Finding 2020-001: The Borough did not contact MLARS prior to utilizing Department of Justice Equitable sharing funds for various minor renovation expenses. Recommendation: The Borough of Fort Lee Police Department should implement policies and procedures to ensure compliance with federal program requirements. Corrective Action: The Borough of Fort Lee Police Department will ensure that approvals are obtained for all renovation or expansion projects to be paid from Justice forfeiture funds and the disallowed costs of $47,745 will be refunded to the Justice equitable sharing account in 2021. Implementation Date: Completed