Audit 323737

FY End
2024-06-30
Total Expended
$9.58M
Findings
2
Programs
2
Year: 2024 Accepted: 2024-10-03

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
501688 2024-001 - - L
1078130 2024-001 - - L

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $7.95M Yes 0
14.195 Project-Based Rental Assistance (pbra) $1.63M Yes 1

Contacts

Name Title Type
F3KFXKLEAFD1 Susan Cupo Auditee
9737788533 June Toth, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Clifton Senior Citizens' Housing Corp. has not elected not to use the 10 percent de mini mis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Clifton Senior Citizens' Housing Corp. under programs of the federal government for the year ended June 30, 2024, 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Clifton Senior Citizens' Housing Corp., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Clifton Senior Citizens' Housing Corp.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Clifton Senior Citizens' Housing Corp. has not elected not to use the 10 percent de mini mis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Clifton Senior Citizens' Housing Corp. has not elected not to use the 10 percent de mini mis indirect cost rate as allowed under the Uniform Guidance.
Title: NON-CASH EXPENDITURES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Clifton Senior Citizens' Housing Corp. has not elected not to use the 10 percent de mini mis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has an agreement with the U.S. Department of Housing and Urban Development (HUD) Section 236 Interest Reduction Program for an interest subsidy on its first mortgage. These interest payments are received directly by the mortgage company.
Title: U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Clifton Senior Citizens' Housing Corp. has not elected not to use the 10 percent de mini mis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Clifton Senior Citizens' Housing Corporation has a U.S. Department of Housing and Urban Development direct loan under Section 223 (f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Clifton Senior Citizens' Housing Corporation received no additional loans during the year. The loan's outstanding balance as of June 30, 2024 consists of: ALN Outstanding Balance at Program Name Number June 30, 2024 U.S. Department of Housing and Urban Development 14.195 $7,135,168 Section 223(f) Insured Loan

Finding Details

Statement of Condition The property management did not complete the required annual inspections for tenant units and common areas during the fiscal year as stipulated under HUD regulations. Criteria HUD Handbook 4350.3, Chapter 6, and 24 CFR Part 5, Section 5.703, property owners are required to conduct annual physical inspections of all units and common areas to ensure compliance with HUD's Uniform Physical Condition Standards (UPCS). Effect or Potential Effect Without timely inspections, there is a risk that units and common areas may not meet HUD's physical condition standards, which can result in health and safety hazards for tenants. Cause The failure to complete the required inspection was due to personnel turnover. Recommendation Management should implement a formal process to ensure annual inspections were conducted and documented in a timely manner. This should include assigning a dedicated staff member to oversee the scheduling, execution, and follow-up of inspections, along with maintaining an organized record of inspection results. Management’s Action Management has resumed inspections. Status Finding closed – management resumed inspections effective January 2024.
Statement of Condition The property management did not complete the required annual inspections for tenant units and common areas during the fiscal year as stipulated under HUD regulations. Criteria HUD Handbook 4350.3, Chapter 6, and 24 CFR Part 5, Section 5.703, property owners are required to conduct annual physical inspections of all units and common areas to ensure compliance with HUD's Uniform Physical Condition Standards (UPCS). Effect or Potential Effect Without timely inspections, there is a risk that units and common areas may not meet HUD's physical condition standards, which can result in health and safety hazards for tenants. Cause The failure to complete the required inspection was due to personnel turnover. Recommendation Management should implement a formal process to ensure annual inspections were conducted and documented in a timely manner. This should include assigning a dedicated staff member to oversee the scheduling, execution, and follow-up of inspections, along with maintaining an organized record of inspection results. Management’s Action Management has resumed inspections. Status Finding closed – management resumed inspections effective January 2024.