FAC Explorer

Audit 303332

FY End
2023-12-31
Total Expended
$10.53M
Findings
6
Programs
3
Organization: Myers Senior Residence, Inc. Hud Project No. 031-Ee074 (NJ)
Year: 2023 Accepted: 2024-04-11
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393051 2023-001 Significant Deficiency - N
393052 2023-001 Significant Deficiency - N
393053 2023-001 Significant Deficiency - N
969493 2023-001 Significant Deficiency - N
969494 2023-001 Significant Deficiency - N
969495 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $400,000 Yes 1
14.239 Home Investment Partnerships Program $300,000 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $170,000 - 0

Contacts

Name Title Type
PZPCC8YEMT41 John Westervelt Auditee
9735963984 Tara Del Gavio Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION The schedule of expenditures of federal awards includes the federal grant activity of HUD Project No. 031-EE074 of Myers Senior Residence, Inc. (the Project) 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, 2023, the Project did not elect to use the de minimis cost rate when allocating indirect costs to its federal programs. During the year ended December 31, 2023, the Project did not provide any funds relating to their federal programs to subrecipients.
Title: LOAN AND LOAN GUARANTEE PROGRAMS Accounting Policies: BASIS OF PRESENTATION The schedule of expenditures of federal awards includes the federal grant activity of HUD Project No. 031-EE074 of Myers Senior Residence, Inc. (the Project) 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, 2023, the Project did not elect to use the de minimis cost rate when allocating indirect costs to its federal programs. As of December 31, 2023, there is $8,799,100 and $400,000 outstanding on the HUD capital advance and loan passed through from Domus Corporation, $640,634 and $300,000 outstanding on two Home Investment Partnerships Program loans through the county of Union, and $170,000 outstanding on a loan passed through New Jersey Department of Community Affairs.

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advances, Section 202 - Project Rental Assistance and Section 202 Demonstration Pre-Development Planning Grant. Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A, 2023 Award Period: 01/01/2023-12/31/2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Project to obtain approval for replacement reserve withdrawals and to make all required deposits timely. Condition: The Project is required by its regulatory agreement with HUD to make monthly deposits into the reserve for replacement account. The reserve was underfunded by one monthly deposit for the year ended December 31, 2023. Cause: The Project did not review the replacement reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Project underfunded the required replacement reserve deposits for the year ended December 31, 2023, by $3,658, which was not in accordance with the regulatory agreement approved by HUD. Repeat Finding: N/A Recommendation: We recommend that management take the necessary steps to ensure that future deposits are made in accordance with HUD regulations. Payments should be made monthly into the replacement reserve. Views of responsible officials: There is no disagreement with the audit finding. Management is aware of the underfunding and will make the required deposit after year-end.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advances, Section 202 - Project Rental Assistance and Section 202 Demonstration Pre-Development Planning Grant. Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A, 2023 Award Period: 01/01/2023-12/31/2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Project to obtain approval for replacement reserve withdrawals and to make all required deposits timely. Condition: The Project is required by its regulatory agreement with HUD to make monthly deposits into the reserve for replacement account. The reserve was underfunded by one monthly deposit for the year ended December 31, 2023. Cause: The Project did not review the replacement reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Project underfunded the required replacement reserve deposits for the year ended December 31, 2023, by $3,658, which was not in accordance with the regulatory agreement approved by HUD. Repeat Finding: N/A Recommendation: We recommend that management take the necessary steps to ensure that future deposits are made in accordance with HUD regulations. Payments should be made monthly into the replacement reserve. Views of responsible officials: There is no disagreement with the audit finding. Management is aware of the underfunding and will make the required deposit after year-end.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advances, Section 202 - Project Rental Assistance and Section 202 Demonstration Pre-Development Planning Grant. Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A, 2023 Award Period: 01/01/2023-12/31/2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Project to obtain approval for replacement reserve withdrawals and to make all required deposits timely. Condition: The Project is required by its regulatory agreement with HUD to make monthly deposits into the reserve for replacement account. The reserve was underfunded by one monthly deposit for the year ended December 31, 2023. Cause: The Project did not review the replacement reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Project underfunded the required replacement reserve deposits for the year ended December 31, 2023, by $3,658, which was not in accordance with the regulatory agreement approved by HUD. Repeat Finding: N/A Recommendation: We recommend that management take the necessary steps to ensure that future deposits are made in accordance with HUD regulations. Payments should be made monthly into the replacement reserve. Views of responsible officials: There is no disagreement with the audit finding. Management is aware of the underfunding and will make the required deposit after year-end.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advances, Section 202 - Project Rental Assistance and Section 202 Demonstration Pre-Development Planning Grant. Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A, 2023 Award Period: 01/01/2023-12/31/2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Project to obtain approval for replacement reserve withdrawals and to make all required deposits timely. Condition: The Project is required by its regulatory agreement with HUD to make monthly deposits into the reserve for replacement account. The reserve was underfunded by one monthly deposit for the year ended December 31, 2023. Cause: The Project did not review the replacement reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Project underfunded the required replacement reserve deposits for the year ended December 31, 2023, by $3,658, which was not in accordance with the regulatory agreement approved by HUD. Repeat Finding: N/A Recommendation: We recommend that management take the necessary steps to ensure that future deposits are made in accordance with HUD regulations. Payments should be made monthly into the replacement reserve. Views of responsible officials: There is no disagreement with the audit finding. Management is aware of the underfunding and will make the required deposit after year-end.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advances, Section 202 - Project Rental Assistance and Section 202 Demonstration Pre-Development Planning Grant. Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A, 2023 Award Period: 01/01/2023-12/31/2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Project to obtain approval for replacement reserve withdrawals and to make all required deposits timely. Condition: The Project is required by its regulatory agreement with HUD to make monthly deposits into the reserve for replacement account. The reserve was underfunded by one monthly deposit for the year ended December 31, 2023. Cause: The Project did not review the replacement reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Project underfunded the required replacement reserve deposits for the year ended December 31, 2023, by $3,658, which was not in accordance with the regulatory agreement approved by HUD. Repeat Finding: N/A Recommendation: We recommend that management take the necessary steps to ensure that future deposits are made in accordance with HUD regulations. Payments should be made monthly into the replacement reserve. Views of responsible officials: There is no disagreement with the audit finding. Management is aware of the underfunding and will make the required deposit after year-end.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advances, Section 202 - Project Rental Assistance and Section 202 Demonstration Pre-Development Planning Grant. Assistance Listing Number: 14.157 Federal Award Identification Number and Year: N/A, 2023 Award Period: 01/01/2023-12/31/2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management of the Project is responsible for complying with laws and regulations. This responsibility includes compliance with HUD regulations requiring the Project to obtain approval for replacement reserve withdrawals and to make all required deposits timely. Condition: The Project is required by its regulatory agreement with HUD to make monthly deposits into the reserve for replacement account. The reserve was underfunded by one monthly deposit for the year ended December 31, 2023. Cause: The Project did not review the replacement reserve transactions timely to ensure the transactions were in accordance with HUD regulations. Effect: The Project underfunded the required replacement reserve deposits for the year ended December 31, 2023, by $3,658, which was not in accordance with the regulatory agreement approved by HUD. Repeat Finding: N/A Recommendation: We recommend that management take the necessary steps to ensure that future deposits are made in accordance with HUD regulations. Payments should be made monthly into the replacement reserve. Views of responsible officials: There is no disagreement with the audit finding. Management is aware of the underfunding and will make the required deposit after year-end.