Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis ofaccounting. This basis of accounting is described in Note 2 to the Corporations basic financialstatements. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Corporation has a mortgage payable to NJHMFA with an outstanding balance of $1,735,250 as of December 31, 2022. The mortgage is payable in monthly installments of $13,847 and matures on January 1, 2039. The outstanding balance of $1,798,761 reported in the accompanying schedule of expenditures of federal awards represents the balance as of January 1, 2022.
Title: BASIS OF PRESENTATION
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis ofaccounting. This basis of accounting is described in Note 2 to the Corporations basic financialstatements. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards presents the activity of all federal awards of the organization. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies is included on the schedule of expenditures of federal awards.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis ofaccounting. This basis of accounting is described in Note 2 to the Corporations basic financialstatements. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedules agree with the amounts reported in the Corporations financial statements. Expenditures from awards are reported in the Corporations financial statements as follows: Rental assistance Section 8 $1,005,930 Tenant rent 330,630 Superintendents apartment (in-kind) 20,012 Vacancy adjustment (30,045) Total rental income $ 1,326,527 Section 202 Capital Advance Program. The Corporation, as the Sponsor of the Leonia II Project, has recorded a Section 202 mortgage note in the amount of $3,876,900. The note bears no interest and repayment is not required so long as the housing remains available for very low-income elderly or disabled persons. Section 542(c) Risk Sharing Program. The Corporation has a mortgage payable to NJHMFA with an outstanding balance of $1,735,250 as of December 31, 2022. The mortgage is payable in monthly installments of $13,847 and matures on January 1, 2039. The outstanding balance of $1,798,761 reported in the accompanying schedule of expenditures of federal awards represents the balance as of January 1, 2022.
Title: MAJOR PROGRAMS
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis ofaccounting. This basis of accounting is described in Note 2 to the Corporations basic financialstatements. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Major programs are identified in the Schedule of Findings and Questioned Costs section.
Title: CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis ofaccounting. This basis of accounting is described in Note 2 to the Corporations basic financialstatements. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Each of the grantor agencies reserves the right to conduct additional audits of the Corporations grant program for economy, efficiency and program results. However, management does not believe such audits would result in material amounts of disallowed costs.
Title: RELATIONSHIP TO THE FINANCIAL REPORTS
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis ofaccounting. This basis of accounting is described in Note 2 to the Corporations basic financialstatements. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented inthis schedule may differ from amounts presented in, or used in the preparation of, the basic financialstatements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedule agree with amounts in the related financial reports.