Audit 385257

FY End
2023-12-31
Total Expended
$1.29M
Findings
2
Programs
2
Organization: Newburg Retirement Center, Inc. (CA)
Year: 2023 Accepted: 2026-02-03

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1172104 2023-001 Material Weakness Yes P
1172105 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.06M Yes 1
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $236,970 Yes 1

Contacts

Name Title Type
MFB7LBUPAVN3 Susan Diehl McCarthy Auditee
7077255923 Keith Borges Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of FHA Contract 12111148 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). Becasue the scheudle presents only a selected portion of the operations of Newburg Retirement Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Newburg Retirement Center, Inc.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contined in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Newburg Retirement has elected not to use the 10-percent de minimum indirect costs rate allowable under the Uniform Guidance.
Newburg Retirement Center, Inc. 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. Newburg Retirement Center, Inc. received no additional loans during the year. The balance of the outstanding loan as of 12/31/23 was $1,007,212.

Finding Details

Lack of Client Expertise in Financial Accounting and Reporting. The organization does not have the ability, either internally or through the use of a qualified outside party, to independently prepare and review the financial statements and the related footnote disclosures. As such, there are no controls to prevent and detect misstatements in this area.