FAC Explorer

Audit 35379

FY End
2022-06-30
Total Expended
$1.02M
Findings
2
Programs
2
Organization: Serv Centers Housing Corp, Inc. Trenton Group Home 035-Eh057 (NJ)
Year: 2022 Accepted: 2022-10-11
Auditor: Mercadien PC Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34127 2022-001 - - A
610569 2022-001 - - A

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $814,048 Yes 0
14.181 Supportive Housing for Persons with Disabilities $202,223 Yes 1

Contacts

Name Title Type
L9KPUZMUDW63 Bob Rosvold Auditee
6096623097 Lovepreet Buttar Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 June 30, 2022. 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 auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - The Organization has received a U.S. Department of Housing and Urban Development direct loan under Section 202 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. The Organization received no additionalloans during the year. The balance of the loan outstanding at June 30, 2021 is $814,048.

Finding Details

Finding 2022-001
Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811). Federal Assistance Listing Number 14.181. ? Criteria or specific requirement: Per the Consolidated Audit Guide for Audits of HUD Programs Handbook, organizations who participate in HUD?s rent subsidy program are responsible for recertifying tenants annually in accordance with HUD requirements. ? Condition: The Organization did not recertify each tenant in a timely manner during the fiscal year under audit. Due to delays in recertification, the Organization did not record revenue based on updated calculations from Form 50059s. ? Effect: Inadequate controls and resources over this area of compliance resulted in the following conditions: o The Organization did not maintain current certifications for each tenant selected as part of our sample. o Housing Owner?s Certification and Application for Housing Assistance Payments vouchers were not submitted timely, causing a delay in final revenue being recorded for the fiscal year. ? Cause: Due to personnel issues and the continued impact of the COVID-19 pandemic, the tenant recertification process was delayed. ? Recommendation: The Organization should ensure compliance with HUD requirements as set forth in the Consolidated Audit Guide for Audits of HUD Programs Handbook. Tenant recertifications should be completed in a timely manner to ensure that there is no significant delay in reporting in future years. ? Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided.
Finding 2022-001
Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811). Federal Assistance Listing Number 14.181. ? Criteria or specific requirement: Per the Consolidated Audit Guide for Audits of HUD Programs Handbook, organizations who participate in HUD?s rent subsidy program are responsible for recertifying tenants annually in accordance with HUD requirements. ? Condition: The Organization did not recertify each tenant in a timely manner during the fiscal year under audit. Due to delays in recertification, the Organization did not record revenue based on updated calculations from Form 50059s. ? Effect: Inadequate controls and resources over this area of compliance resulted in the following conditions: o The Organization did not maintain current certifications for each tenant selected as part of our sample. o Housing Owner?s Certification and Application for Housing Assistance Payments vouchers were not submitted timely, causing a delay in final revenue being recorded for the fiscal year. ? Cause: Due to personnel issues and the continued impact of the COVID-19 pandemic, the tenant recertification process was delayed. ? Recommendation: The Organization should ensure compliance with HUD requirements as set forth in the Consolidated Audit Guide for Audits of HUD Programs Handbook. Tenant recertifications should be completed in a timely manner to ensure that there is no significant delay in reporting in future years. ? Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided.