FAC Explorer

Audit 39255

FY End
2022-12-31
Total Expended
$1.10M
Findings
2
Programs
1
Organization: Spectrum Ringwood Apartments, Inc. (NJ)
Year: 2022 Accepted: 2023-03-26
Auditor: Mercadien PC Certified Public Accountants

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41764 2022-002 Significant Deficiency - N
618206 2022-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.00M Yes 1

Contacts

Name Title Type
NRRKBQZKJLE3 Danny Rosario Auditee
2013588000 Lovepreet Buttar, CPA 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 December 31, 2022.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. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 1001000.

Finding Details

Finding 2022-002
Finding: 2022-002 Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) and Capital Advance 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. Per the memorandum, the Organization is required to remit all excess funds greater than $250 to HUD?s Accounting Center upon termination or renewal of the PRAC. Condition: The Organization had excess funds over $250 remaining in the residual receipts account which have not been remitted to HUD upon PRAC termination. Cause: The Organization?s understanding was that payments of excess residual receipts balances were to be made once requested from HUD. 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. Recommendation: We recommend that the Organization determine the appropriate excess funds which should be remitted to HUD?s Accounting Center and properly remit those funds on an annual basis upon PRAC termination to remain in compliance. Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.
Finding 2022-002
Finding: 2022-002 Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) and Capital Advance 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. Per the memorandum, the Organization is required to remit all excess funds greater than $250 to HUD?s Accounting Center upon termination or renewal of the PRAC. Condition: The Organization had excess funds over $250 remaining in the residual receipts account which have not been remitted to HUD upon PRAC termination. Cause: The Organization?s understanding was that payments of excess residual receipts balances were to be made once requested from HUD. 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. Recommendation: We recommend that the Organization determine the appropriate excess funds which should be remitted to HUD?s Accounting Center and properly remit those funds on an annual basis upon PRAC termination to remain in compliance. Views of responsible officials and planned corrective actions: Management is in agreement with the finding. See Corrective Action Plan.