FAC Explorer

Audit 384668

FY End
2025-06-30
Total Expended
$781,624
Findings
2
Programs
1
Organization: The Arc of Cape May County, INC and Affiliate (NJ)
Year: 2025 Accepted: 2026-01-30
Auditor: CAPALDI REYNOLDS & PELOSI PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1171386 2025-001 Material Weakness Yes N
1171387 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $25,124 Yes 1

Contacts

Name Title Type
YDMVPF8DTLG9 Majken Mechling Auditee
6098617100 Jeffrey Wilson Auditor
No contacts on file

Notes to SEFA

The accompanying Consolidated Schedule of Expenditures of Federal Awards includes the federal grant activity of The Arc of Cape May County, Inc. and Affiliate 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 The Arc of Cape May County, Inc. and Affiliate, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Arc of Cape May County, Inc. and Affiliate.
The Arc has a loan and mortgage with the United States Department of Housing and Urban Development. Balances and transactions relating to these programs are included in these consolidated financial statements. The outstanding balance of the loan and mortgage at the beginning of the year are included in the schedule of expenditures of federal awards. See the Notes to the SEFA for chart/table

Finding Details

Finding 2025-001
US Department of Housing and Urban Development HUD Section 811 Capital Advance and Rental Assistance Payments Assistance Listing No. 14.181 Criteria: HUD requires the Project to make monthly deposits to the replacement reserve in accordance with the regulatory agreement. Condition: The Project did not make the required monthly deposits to the replacement reserve during the year under audit. Cause: Management oversight resulted in deposits not being made. The Project did not have adequate procedures in place to monitor compliance with the monthly deposit requirement. Effect: The Project was not in compliance with HUD requirements regarding monthly deposits to the replacement reserve. Perspective Information: At June 30, 2025, cumulative deposits to the replacement reserve were $3,168 less than required. Recommendation: Management should make a catch-up deposit of $3,168 to the replacement reserve and strengthen controls to ensure monthly deposits are made as required. View of Responsible Officials: Management concurs with the finding and agrees with the auditors' recommendation. Management made a deposit of $3,168 on September 29, 2025. No further action is required.