Township of Derry

EIN: 236000290

UEI: NJMSVJB99K96

Data as of August 26, 2026

Township of Derry3 audit years2 findings
3
Audit Years
2
Total Findings
0
Repeat Findings

FY 2020-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on July 4, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 4, 2023 (1330 days ago).

What is a management decision? →
2020-001
Cost Allowability

The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, "Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated." Condition During the course of the audit, it was determined that in one (1) of 40 payroll records tested, there was no Personnel Action Form to support the pay rate. The Manager of Payroll and- Employee Benefits referenced the union contract to ensure correct pay rate would be paid. Cause The Department Records Manager failed to initiate the Personnel Action Form which authorizes changes to payroll rates. The cause is human error. Effect The lack of internal controls over payroll expenses may result in misstating the financial statements or paying employees wrong amounts. In addition, it also increases the risk of fraudulent payroll transactions occurring and not being detected.

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Full finding narrative

The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, "Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated." Condition During the course of the audit, it was determined that in one (1) of 40 payroll records tested, there was no Personnel Action Form to support the pay rate. The Manager of Payroll and- Employee Benefits referenced the union contract to ensure correct pay rate would be paid. Cause The Department Records Manager failed to initiate the Personnel Action Form which authorizes changes to payroll rates. The cause is human error. Effect The lack of internal controls over payroll expenses may result in misstating the financial statements or paying employees wrong amounts. In addition, it also increases the risk of fraudulent payroll transactions occurring and not being detected.

Corrective Action Plan

This change was made to bring the individual's pay into accordance with the authoritative union contract as previously approved by the Board of Supervisors. It is our policy to have an approval form for every pay change. A mistake was made in this instance.

About Allowable Costs / Cost Principles →
2020-002
Cost Allowability

Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR). specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, "Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated." Condition During the course of the audit, it was determined that in one (1) of 40 payroll records tested, there was a system generated error in the rate of pay. The Manager of Payroll and Employee Benefits had correctly entered the rate of pay; however, the new software system paid the employee at a lower rate. Cause The cause is a system-generated error. Effect The employee was under-paid; therefore, there was no impact on the grant.

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Full finding narrative

Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR). specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, "Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated." Condition During the course of the audit, it was determined that in one (1) of 40 payroll records tested, there was a system generated error in the rate of pay. The Manager of Payroll and Employee Benefits had correctly entered the rate of pay; however, the new software system paid the employee at a lower rate. Cause The cause is a system-generated error. Effect The employee was under-paid; therefore, there was no impact on the grant.

Corrective Action Plan

This software has been installed and operating for a significant period at this point, without further uncorrected issues. Township staff continues to review payroll regularly to ensure no other issues pop up.

About Allowable Costs / Cost Principles →

Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.

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