FAC Explorer

Audit 2402

FY End
2022-06-30
Total Expended
$8.86M
Findings
2
Programs
2
Organization: Westwood Senior Housing CORP (NJ)
Year: 2022 Accepted: 2023-11-06
Auditor: Geltrude & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1275 2022-001 Significant Deficiency Yes C
577717 2022-001 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $5.95M Yes 0
14.182 Section 8 New Construction and Substantial Rehabilitation $2.91M Yes 1

Contacts

Name Title Type
FQL8ZDL7QGF9 Steven Cirillo Auditee
2076664477 Michael Carlon Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal award activity of Westwood Senior Housing Corp., HUD Project No. 031-11071, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Westwood Senior Housing Corp., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Westwood Senior Housing Corp. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Westwood Senior Housing Corp., HUD Project No. 031-11071, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Westwood Senior Housing Corp., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Westwood Senior Housing Corp.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal award activity of Westwood Senior Housing Corp., HUD Project No. 031-11071, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Westwood Senior Housing Corp., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Westwood Senior Housing Corp. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal award activity of Westwood Senior Housing Corp., HUD Project No. 031-11071, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Westwood Senior Housing Corp., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Westwood Senior Housing Corp. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project did not provide state awards to any subrecipients.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal award activity of Westwood Senior Housing Corp., HUD Project No. 031-11071, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Westwood Senior Housing Corp., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Westwood Senior Housing Corp. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Westwood Senior Housing Corp. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project has received a HUD direct loan under Section 207 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. Westwood Senior Housing Corp. received no additional loans during the year. The balance of the loan outstanding at June 30, 2022 consists of: HUD Section 207, Mortgage pursuant to Section 223(f) - CFDA No. 14.155 - Outstanding Balance at June 30, 2022: $5,949,130.

Finding Details

Finding 2022-001
Finding 2022-001 - Significant Deficiency - Internal Control over Financial Reporting. Criteria - The NJ Unclaimed Property rules and regulations require that unclaimed checks older 3 years are considered to be abandoned and must be remitted to the State of New Jersey. Unclaimed property must be turned over to the State Treasurer of New Jersey. We noted that the Project has outstanding checks that are over three years old that have not been voided or re-issued and should be remitted to the State of New Jersey. Condition - During our audit, we identified outstanding checks that have been included in the financial records that are older than 3 years. Cause - The entity did not void or reissue the stale checks before they were considered to be abandoned by the state regulations. Effect - As a result of this condition, the Project was not in compliance with New Jersey Unclaimed Property Rules and Regulations and did not file the appropriate annual reports. Recommendation - Management should complete the appropriate voluntary correction forms with the State of New Jersey and remit any abandoned property. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and will review the outstanding checks older than three years and take appropriate action, may it be void the old outstanding check, reissue the check or file voluntary correction forms with the State of NJ.
Finding 2022-001
Finding 2022-001 - Significant Deficiency - Internal Control over Financial Reporting. Criteria - The NJ Unclaimed Property rules and regulations require that unclaimed checks older 3 years are considered to be abandoned and must be remitted to the State of New Jersey. Unclaimed property must be turned over to the State Treasurer of New Jersey. We noted that the Project has outstanding checks that are over three years old that have not been voided or re-issued and should be remitted to the State of New Jersey. Condition - During our audit, we identified outstanding checks that have been included in the financial records that are older than 3 years. Cause - The entity did not void or reissue the stale checks before they were considered to be abandoned by the state regulations. Effect - As a result of this condition, the Project was not in compliance with New Jersey Unclaimed Property Rules and Regulations and did not file the appropriate annual reports. Recommendation - Management should complete the appropriate voluntary correction forms with the State of New Jersey and remit any abandoned property. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and will review the outstanding checks older than three years and take appropriate action, may it be void the old outstanding check, reissue the check or file voluntary correction forms with the State of NJ.