Audit 21468

FY End

2022-06-30

Total Expended

$1.28M

Findings

2

Programs

1

Organization: Middletown Homes, Inc. (NJ)

Year: 2022 Accepted: 2022-10-12

Auditor: Mercadien PC Certified Public Accountants

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
24758	2022-001	-	-	N
601200	2022-001	-	-	N

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$40,856	Yes	0

Contacts

Name	Title	Type
M9PWUJ6KKDD5	Richard Manall	Auditee
6096890136	Lovepreet Buttar	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Organization under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - The Organization has received a U.S. Department of Housing and Urban Development direct loan/capital advance under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Organization received no additional loans during the year. The balance of the loan outstanding at June 30, 2022 is $1,234,700.

Finding Details

Finding 2022-001

Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) ? Criteria or specific requirement: In accordance with the HUD regulatory agreement, the Organization shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year based on the surplus cash calculation. Condition: The Organization has surplus cash in its June 30, 2021, financial statements of $6,476 which was required to be deposited September 30, 2021, and was not deposited. Cause: There was an oversight by the Finance Department when reviewing the financial statements and the transfer was not made. Recommendation: We recommend that a process be put in place to ensure the calculation and any necessary deposits are made timely. Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.

Finding 2022-001

Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) ? Criteria or specific requirement: In accordance with the HUD regulatory agreement, the Organization shall establish a residual receipts account and make deposits into the account within 90 days after the close of the fiscal year based on the surplus cash calculation. Condition: The Organization has surplus cash in its June 30, 2021, financial statements of $6,476 which was required to be deposited September 30, 2021, and was not deposited. Cause: There was an oversight by the Finance Department when reviewing the financial statements and the transfer was not made. Recommendation: We recommend that a process be put in place to ensure the calculation and any necessary deposits are made timely. Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.