FAC Explorer

Audit 354370

FY End
2024-12-31
Total Expended
$6.77M
Findings
2
Programs
2
Organization: Nutley Senior Citizens Housing Corporation (NJ)
Year: 2024 Accepted: 2025-04-23
Auditor: Geltrude & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555742 2024-001 Significant Deficiency - A
1132184 2024-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $4.41M Yes 1
14.182 Lower Income Housing Assistance Program_section 8 New Construction/substantial Rehabilitation $2.36M Yes 0

Contacts

Name Title Type
HVNNJABBV656 Christopher Destefano Auditee
9732284060 Michael Carlon Auditor
No contacts on file

Notes to SEFA

Title: A. 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. Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Nutley Senior Citizens Housing Corporation, HUD Project No. 031-11067, 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 Nutley Senior Citizens Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Nutley Senior Citizens Housing Corporation.
Title: B. 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. Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: C. SUBRECIPIENTS 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. Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project did not provide state awards to any subrecipients.
Title: D. 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. Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Nutley Senior Citizens Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Nutley Senior Citizens Housing Corporation has received a U.S. Department of Housing and Urban Development direct loan under Section 207 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. Nutley Senior Citizens Housing Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of: HUD Section 207, Mortgage pursuant to Section 223(f) - ALN No. 14.157: $4,408,995

Finding Details

Finding 2024-001
Finding 2024-001 Significant Deficiency Internal Control over Major Federal Award Programs Criteria: Accounting principles generally accepted in the United States of America ("GAAP"), as prescribed by the Governmental Accounting Standards Board, require entities to establish and maintain effective internal control over financial reporting to prepare timely, accurate financial reports. Condition: During our audit, we identified that the Project did not deposit its surplus cash within the required deadline. This resulted in noncompliance with the established financial controls and reporting requirements. The delay in deposit could have impacted the Project's compliance with Major Federal Award Programs. Cause: The Project's internal control procedures did not ensure that surplus cash deposits were made within the required timeframe. This indicates a deficiency in the financial closing process related to Major Federal Award Programs. Effect: As a result of this condition, the Project was not in compliance with the required financial reporting timeline. The delay in deposit could lead to noncompliance with Major Federal Award Programs. Recommendation: Management should implement stronger internal controls to ensure surplus cash deposits are made in accordance with the required deadlines. This may include setting up automated reminders, improving oversight, or assigning clear responsibilities to ensure compliance. Views of Responsible Officials and Planned Corrective Actions: Management has reviewed the audit finding and acknowledges the delay in depositing surplus cash. Management was under the impression that the surplus cash was going to be used for the reduction of a future HAP payment. Management believes this was an isolated incident and has taken corrective action by reinforcing internal procedures to ensure timely deposits in the future. Additional monitoring measures have been implemented to prevent recurrence.
Finding 2024-001
Finding 2024-001 Significant Deficiency Internal Control over Major Federal Award Programs Criteria: Accounting principles generally accepted in the United States of America ("GAAP"), as prescribed by the Governmental Accounting Standards Board, require entities to establish and maintain effective internal control over financial reporting to prepare timely, accurate financial reports. Condition: During our audit, we identified that the Project did not deposit its surplus cash within the required deadline. This resulted in noncompliance with the established financial controls and reporting requirements. The delay in deposit could have impacted the Project's compliance with Major Federal Award Programs. Cause: The Project's internal control procedures did not ensure that surplus cash deposits were made within the required timeframe. This indicates a deficiency in the financial closing process related to Major Federal Award Programs. Effect: As a result of this condition, the Project was not in compliance with the required financial reporting timeline. The delay in deposit could lead to noncompliance with Major Federal Award Programs. Recommendation: Management should implement stronger internal controls to ensure surplus cash deposits are made in accordance with the required deadlines. This may include setting up automated reminders, improving oversight, or assigning clear responsibilities to ensure compliance. Views of Responsible Officials and Planned Corrective Actions: Management has reviewed the audit finding and acknowledges the delay in depositing surplus cash. Management was under the impression that the surplus cash was going to be used for the reduction of a future HAP payment. Management believes this was an isolated incident and has taken corrective action by reinforcing internal procedures to ensure timely deposits in the future. Additional monitoring measures have been implemented to prevent recurrence.