FAC Explorer

Audit 319529

FY End
2023-12-31
Total Expended
$2.90M
Findings
8
Programs
13
Organization: Isles, INC and Subsidiaries (NJ)
Year: 2023 Accepted: 2024-09-13
Auditor: Mercadien PC CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496759 2023-001 Significant Deficiency - P
496760 2023-001 Significant Deficiency - P
496761 2023-001 Significant Deficiency - P
496762 2023-001 Significant Deficiency - P
1073201 2023-001 Significant Deficiency - P
1073202 2023-001 Significant Deficiency - P
1073203 2023-001 Significant Deficiency - P
1073204 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
17.274 Youthbuild $357,580 Yes 0
14.900 Lead-Based Paint Hazard Control in Privately-Owned Housing $226,422 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $178,638 Yes 1
93.568 Low-Income Home Energy Assistance $135,910 Yes 0
81.042 Weatherization Assistance for Low-Income Persons $105,479 - 0
14.239 Home Investment Partnerships Program $82,000 - 0
14.913 Healthy Homes Production Program $75,233 - 0
93.197 Childhood Lead Poisoning Prevention Projects_state and Local Childhood Lead Poisoning Prevention and Surveillance of Blood Lead Levels in Children $61,525 - 0
10.935 Urban Agriculture and Innovative Production $44,050 - 0
16.123 Community-Based Violence Prevention Program $22,525 - 0
93.558 Temporary Assistance for Needy Families $22,370 - 0
14.169 Housing Counseling Assistance Program $15,252 - 0
94.006 Americorps $2,284 - 0

Contacts

Name Title Type
NDP5K3UWDUW8 Sean Jackson Auditee
6094688835 Lovepreet Buttar, CPA Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying Schedules of expenditures of federal awards and state financial assistance (the "Schedules") includes the federal award and state financial activity of the Organization under programs of the federal and state government for the year ended December 31, 2023. and are presented in the accrual basis of accounting. The informantion in these Schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and State of New Jersey, Circular Letter 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (the "Circular"). Because the Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, change in net assets or cash flows of the Organization. Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of New Jersey, Department of Community Affairs Cost Reimbursement Manual, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. As of December 31, 2023, the Organization had a loan with an ending balance of $82,000 with the U.S. Department of Housing and Urban Development, passed through State of New Jersey - Department of Community Affairs HOME Housing Production Investment Fund.
Title: Reconciliation of Government Grants to Schedules Accounting Policies: The accompanying Schedules of expenditures of federal awards and state financial assistance (the "Schedules") includes the federal award and state financial activity of the Organization under programs of the federal and state government for the year ended December 31, 2023. and are presented in the accrual basis of accounting. The informantion in these Schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards ("Uniform Guidance") and State of New Jersey, Circular Letter 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (the "Circular"). Because the Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, change in net assets or cash flows of the Organization. Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of New Jersey, Department of Community Affairs Cost Reimbursement Manual, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See the Notes to the SEFA for chart/table - As of December 31, 2023, the Organization had a loan with an ending balance of $82,000 with the U.S. Department of Housing and Urban Development, passed through State of New Jersey - Department of Community Affairs HOME Housing Production Investment Fund. Government grants revenue per audit: $ 7,632,746 Add: HOME Investment Partnership loan balance 82,000 Less: Local grants not reported on SEFA or SESA (219,287) Adjusted government grants revenue per audit 7,495,459 Expenses per Schedules Schedule of Federal Awards $ 2,904,428 Schedule of State Financial Assistance 4,591,031 Total expenses per Schedules 7,495,459 Variance $ -

Finding Details

Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.
Finding 2023-001
Program: all programs, the Organization is required to have sufficient internal controls in place over the preparation of Schedules, including accurately reflecting all state and federal funding received. The Organization erroneously identified certain federal grants as state funded grants on the Schedules. Cause: the Organization receives many grants that get renewed annually, including the two grants selected as part of single audit procedures. Since 2016 and 2019, respectively, these grants have been renewed on an annual basis and through all those years have been a state funded grant. In 2023, the funding sources switched to federal dollars and staff failed to recognize that change. Effect: the schedules did not accurately reflect the total state and federal funding for the year, which lead to additional programs that were required to be tested. Recommendation: We recommend that the Organization perform a thorough review of all funding received each year with a focus on any new funds received, to determine whether it is federal or state funded.This should occur prior to the finalization of the schedules for the year.