FAC Explorer

Audit 380

FY End
2023-06-30
Total Expended
$985,426
Findings
2
Programs
2
Organization: Serv Centers Housing Corp, Inc. Trenton Group Home 035-Eh057 (NJ)
Year: 2023 Accepted: 2023-10-11
Auditor: Mercadien PC Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
203 2023-002 - - A
576645 2023-002 - - A

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $796,623 Yes 0
14.181 Supportive Housing for Persons with Disabilities $188,803 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, 2023. 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 additional loans during the year. The balance of the loan outstanding at June 30, 2023, is $778,179. The balance of the loan outstanding at July 1, 2022, was $796,623.

Finding Details

Finding 2023-002
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: In accordance with the HUD memorandum for Section 811 Project Rental Assistance Contract (“PRAC”) properties, the Organization shall establish a residual receipts account to house any surplus funds at the end of the fiscal year. Any balance greater than $250 per unit in a residual receipts account must be remitted to HUD’s Accounting Center upon “termination” of the PRAC. Termination is defined as expiration of the contract term, which for most PRACs falls on the annual contract anniversary date. Condition: The Organization had excess funds over $250 remaining in the residual receipts account which have not been remitted to HUD upon PRAC termination. Effect: The Organization has not remitted any funds to HUD at the time of the PRAC termination, therefore, it is in violation of the HUD regulatory agreement. Cause: The Organization’s understanding was that payments of excess residual receipts balances were to be made once requested from HUD. Recommendation: We recommend that the organization remit excess residual receipts funds to the HUD Accounting Center upon PRAC termination to remain in compliance. Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.
Finding 2023-002
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: In accordance with the HUD memorandum for Section 811 Project Rental Assistance Contract (“PRAC”) properties, the Organization shall establish a residual receipts account to house any surplus funds at the end of the fiscal year. Any balance greater than $250 per unit in a residual receipts account must be remitted to HUD’s Accounting Center upon “termination” of the PRAC. Termination is defined as expiration of the contract term, which for most PRACs falls on the annual contract anniversary date. Condition: The Organization had excess funds over $250 remaining in the residual receipts account which have not been remitted to HUD upon PRAC termination. Effect: The Organization has not remitted any funds to HUD at the time of the PRAC termination, therefore, it is in violation of the HUD regulatory agreement. Cause: The Organization’s understanding was that payments of excess residual receipts balances were to be made once requested from HUD. Recommendation: We recommend that the organization remit excess residual receipts funds to the HUD Accounting Center upon PRAC termination to remain in compliance. Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.