FAC Explorer

Audit 385352

FY End
2024-12-31
Total Expended
$1.25M
Findings
2
Programs
2
Organization: Newburg Retirement Center, Inc. (CA)
Year: 2024 Accepted: 2026-02-03
Auditor: ANDERSON LUCAS SOMERVILLE & BORGES

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1172321 2024-001 Material Weakness Yes P
1172322 2024-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.01M Yes 2
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $239,584 Yes 0

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 12/31/24 was $957,980.

Finding Details

Finding 2024-001
Lack of Segregation of Duties in Financial Accounting and Reporting. The organization has limited segregation of duties as they relate to the accounting function for the entity. As usch, there are no controls to prevent and detect misstatements in this area. This type of item is typical of small entities, where the accounting staff is not large enough to establish sophisticated accounting controls. The entity's internal accounting control is informal. This results in a situation where additional auditor assistance is needed in the form of year-end financial statement preparation. The organization is encouraged to continue Board of Director involvement and oversight as well.
Finding 2024-002
The organization did not have a sufficient balance in their tenant Security Deposit bank account to cover the full amount of the related Security Deposit liability balance at December 31, 2024.