FAC Explorer

Audit 2488

FY End
2022-12-31
Total Expended
$814,233
Findings
4
Programs
1
Organization: Advance Housing Dmn, Inc. (NJ)
Year: 2022 Accepted: 2023-11-07
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1334 2022-001 Material Weakness - N
1335 2022-001 Material Weakness - N
577776 2022-001 Material Weakness - N
577777 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $26,733 Yes 1

Contacts

Name Title Type
MQXLLFPMKNV3 Carolyn Jaime Auditee
2014989140 Tara Del Gavio Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The schedules of expenditures of federal, state, and local awards include the federal grant activity of HUD Organization No. 031-HD139 of Advance Housing DNM, Inc. (“Organization”), 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: During the year ended December 31, 2022, the Organization did not elect to use the de minimis cost rate when allocating indirect costs to its federal and state programs. During the year ended December 31, 2022, the Organization did not provide any funds relating to its federal and state programs to subrecipients.

Finding Details

Finding 2022-001
Item 2022-001 Material Weakness - Unauthorized Withdrawal from Residual Receipts Reserve Condition: The Organization is required to obtain HUD approval before the release of funds from the residual receipts reserve. The Organization withdrew funds of $5,955 for repairs and renovations to the property. Criteria: Management of the Organization is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Organization to obtain approval for residual receipts reserve withdrawals. Cause: The Organization did not review the residual receipts reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Organization released funds without HUD approval, which was not in accordance with the regulatory agreement approved by HUD. Recommendation: We recommend that management take the necessary steps to ensure that future withdrawals are made in accordance with HUD regulations. Auditee Response and Action Plan: There were staff changes in the accounting department which contributed funds mistakenly withdrawn from residual receipts reserve. We will deposit the funds to the reserve account immediately.
Finding 2022-001
Item 2022-001 Material Weakness - Unauthorized Withdrawal from Residual Receipts Reserve Condition: The Organization is required to obtain HUD approval before the release of funds from the residual receipts reserve. The Organization withdrew funds of $5,955 for repairs and renovations to the property. Criteria: Management of the Organization is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Organization to obtain approval for residual receipts reserve withdrawals. Cause: The Organization did not review the residual receipts reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Organization released funds without HUD approval, which was not in accordance with the regulatory agreement approved by HUD. Recommendation: We recommend that management take the necessary steps to ensure that future withdrawals are made in accordance with HUD regulations. Auditee Response and Action Plan: There were staff changes in the accounting department which contributed funds mistakenly withdrawn from residual receipts reserve. We will deposit the funds to the reserve account immediately.
Finding 2022-001
Item 2022-001 Material Weakness - Unauthorized Withdrawal from Residual Receipts Reserve Condition: The Organization is required to obtain HUD approval before the release of funds from the residual receipts reserve. The Organization withdrew funds of $5,955 for repairs and renovations to the property. Criteria: Management of the Organization is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Organization to obtain approval for residual receipts reserve withdrawals. Cause: The Organization did not review the residual receipts reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Organization released funds without HUD approval, which was not in accordance with the regulatory agreement approved by HUD. Recommendation: We recommend that management take the necessary steps to ensure that future withdrawals are made in accordance with HUD regulations. Auditee Response and Action Plan: There were staff changes in the accounting department which contributed funds mistakenly withdrawn from residual receipts reserve. We will deposit the funds to the reserve account immediately.
Finding 2022-001
Item 2022-001 Material Weakness - Unauthorized Withdrawal from Residual Receipts Reserve Condition: The Organization is required to obtain HUD approval before the release of funds from the residual receipts reserve. The Organization withdrew funds of $5,955 for repairs and renovations to the property. Criteria: Management of the Organization is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Organization to obtain approval for residual receipts reserve withdrawals. Cause: The Organization did not review the residual receipts reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Organization released funds without HUD approval, which was not in accordance with the regulatory agreement approved by HUD. Recommendation: We recommend that management take the necessary steps to ensure that future withdrawals are made in accordance with HUD regulations. Auditee Response and Action Plan: There were staff changes in the accounting department which contributed funds mistakenly withdrawn from residual receipts reserve. We will deposit the funds to the reserve account immediately.