FAC Explorer

Audit 300412

FY End
2023-12-31
Total Expended
$1.92M
Findings
2
Programs
2
Organization: Spectrum Closter Apartments, INC (NJ)
Year: 2023 Accepted: 2024-03-29
Auditor: Mercadien PC Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389457 2023-002 Material Weakness - A
965899 2023-002 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $890,000 - 0
14.181 Supportive Housing for Persons with Disabilities $77,444 Yes 1

Contacts

Name Title Type
VZ7KFZDVN953 Danny Rosario Auditee
2013588000 Lovepret Buttar Auditor
No contacts on file

Notes to SEFA

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 December 31, 2023. 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 the reimbursement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Finding: 2023-002 Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) and Capital Advance Criteria or specific requirement: Management is required to submit billings for housing assistance payments that agree to the agreed upon contract rental rates. Condition: Management did not submit billings for housing assistance payments that agree to the agreed upon contract rental rates. Cause: Authorization for the billing was granted to the third-party vendor for submission to HUD without verification that the billings for housing assistance payments agreed to the contract rental rates. Effect: Billings were submitted to HUD at incorrect amounts for multiple months during 2023. Payment was not provided for any excess billings submitted. Recommendation: We recommend that management of the Organization establish an additional supervisory review to be performed over the housing assistance payment billings prior to requesting funds from HUD. Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.
Finding 2023-002
Finding: 2023-002 Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) and Capital Advance Criteria or specific requirement: Management is required to submit billings for housing assistance payments that agree to the agreed upon contract rental rates. Condition: Management did not submit billings for housing assistance payments that agree to the agreed upon contract rental rates. Cause: Authorization for the billing was granted to the third-party vendor for submission to HUD without verification that the billings for housing assistance payments agreed to the contract rental rates. Effect: Billings were submitted to HUD at incorrect amounts for multiple months during 2023. Payment was not provided for any excess billings submitted. Recommendation: We recommend that management of the Organization establish an additional supervisory review to be performed over the housing assistance payment billings prior to requesting funds from HUD. Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.