Audit 302297

FY End
2023-06-30
Total Expended
$4.11M
Findings
4
Programs
1
Year: 2023 Accepted: 2024-04-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
392123 2023-001 Significant Deficiency - A
392124 2023-002 Material Weakness - A
968565 2023-001 Significant Deficiency - A
968566 2023-002 Material Weakness - A

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $4.11M Yes 2

Contacts

Name Title Type
TQTGW9DTTLN6 Ashley Simons Auditee
6094850800 Lauren Holman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organization’s basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414. The accompanying schedules of expenditures of federal awards and state financial assistance presents the activity of all federal awards and state financial assistance programs of The Arc of Atlantic County, Inc. and Affiliates. The Organization is defined in Note 1 of the basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the consolidated schedules of expenditures of federal awards and state financial assistance.
Title: RELATIONSHIP TO BASIC CONSOLIDATED FINANCIAL STATEMENTS Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organization’s basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414. Amounts reported in the accompanying schedules agree with amounts reported in the related financial reports. Awards and financial assistance revenues are reported in the Organization’s basic consolidated financial statements and presented as follows: Reconciliation of cash expernditures: Federal cash expenditures:$139,003, Total rental assistance payments: $139,001. State Cash expenditures: $53,485, Total state of NJ grants: $53,485. Reconciliation of non-cash expenditures: Federal non-cash expenditures-debt obligations: $251,573, Federal non-cash expenditures-restricted mortgages: $3,721,200, State non-cash expenditures-restricted mortgages: $883,040, Local restricted mortgages: $270,000, Total restricted mortages: $4,874,240
Title: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organization’s basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414. Amounts reported in the accompanying schedules agree with the amounts reported in the related financial reports.
Title: MAJOR PROGRAMS Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organization’s basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414. Major programs are identified in the Schedule of Findings and Questioned Costs.
Title: CONTINGENCIES Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organization’s basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414. Each of the grantor agencies reserves the right to conduct additional audits of the Organization’s grant program for economy, efficiency and program results. However, the Organization’s administration does not believe such audits would result in material amounts of disallowed costs
Title: FEDERAL AND STATE LOANS OUTSTANDING Accounting Policies: The accompanying consolidated schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the Organization’s basic consolidated financial statements. The information in these schedules are 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) and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414. The below table represents the balances outstanding on mortgages and capital advances with U.S. Department of Housing and Urban Development as of June 30, 2023: Residential alternatives-Atlantic, Inc.: $251,573, Village Housing, Inc: $521,500, Harding Housing, Inc: $337,100, Atlantic County Homes: $1,091,300, CHT Vision, Inc: $1,771,300, Total U.S. department of Housing and Urban Development Federal loans outstanding. The below table represents the balances outstanding on mortgages and capital advances with NJ Department of Human Services as of June 30, 2023: Atlantic County Homes: $68,800, CHT Vision, Inc.: $76,770, Total NJ Department of Human Services State loans outstanding: $145,570. The below table represents the balances outstanding on mortgages and capital advances with NJ Department of Community Affairs as of June 30, 2023: Atlantic County Homes: $368,862, The Arc of Altantic County Inc: $368,608, Total NJ Department of Community Affairs State loands outstanding: $737,470.

Finding Details

Criteria: All surplus cash available to each HUD project at the end of an annual fiscal period must be deposited in the residual receipts account for that project within sixty days of the fiscal period end in accordance with the provisions of the regulatory agreements.
Criteria: Generally accepted accounting principles in the United States of America provides that the design or operation of an internal control structure over financial reporting allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, misstatements on a timely basis. This includes the need for an individual, not directly involved in the preparation of transactions or financial statement amounts, to provide a review of the work performed. There appears to be a general lack of control consciousness within the Organization.
Criteria: All surplus cash available to each HUD project at the end of an annual fiscal period must be deposited in the residual receipts account for that project within sixty days of the fiscal period end in accordance with the provisions of the regulatory agreements.
Criteria: Generally accepted accounting principles in the United States of America provides that the design or operation of an internal control structure over financial reporting allows management or employees in the normal course of performing their assigned functions to prevent, or detect and correct, misstatements on a timely basis. This includes the need for an individual, not directly involved in the preparation of transactions or financial statement amounts, to provide a review of the work performed. There appears to be a general lack of control consciousness within the Organization.