FAC Explorer

Audit 399591

FY End
2025-12-31
Total Expended
$6.64M
Findings
1
Programs
2
Organization: Nutley Senior Citizens Housing Corporation (NJ)
Year: 2025 Accepted: 2026-04-23
Auditor: GELTRUDE & COMPANY LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208639 2025-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $4.15M Yes 1
14.182 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION $2.49M Yes 0

Contacts

Name Title Type
HVNNJABBV656 Christopher Destefano Auditee
9732284060 Michael Carlon Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of Nutley Senior Citizens Housing Corporation, HUD Project No. 031-11067, 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 Nutley Senior Citizens Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Nutley Senior Citizens Housing Corporation.
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Nutley Senior Citizens Housing Corporation has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Project did not provide state awards to any subrecipients.
Nutley Senior Citizens Housing Corporation has received a U.S. Department of Housing and Urban Development direct loan under Section 207 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. Nutley Senior Citizens Housing Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2025 consists of: HUD Section 207, Mortgage pursuant to Section 223(f) - ALN No. 14.157: $4,146,950

Finding Details

Finding 2025-001
Finding 2025-001 Significant Deficiency Submission of surplus cash to the residual receipt account Criteria: In accordance with HUD Multifamily programs and the Projects HUD Regulatory Agreement under Section 207 the Project is required to submit any surplus cash within sixty-days of year end. Conditiion: During our audit, we identified that the Project did not deposit its surplus cash within the required deadline for the years 2025 and 2024. This resulted in non-compliance with the established financial controls and reporting requirements. The delay in deposit could have impacted the Project's compliance with Major Federal Award Programs. Cause: The Project's internal control procedures did not ensure that surplus cash deposits were made within the required timeframe. Effect: The Project is in noncompliance with the specific requirements of its HUD Regulatory Agreement. Identification of Repeat Finding: 2024-001 Recommendation: Management should implement stronger internal controls to ensure surplus cash deposits are made in accordance with the required deadlines. This may include setting up automated reminders, improving oversight, or assigning clear responsibilities to ensure compliance. Views of Responsible Officials and Planned Corrective Actions: Management has reviewed the audit finding and acknowledges the delay in depositing surplus cash. Management has submitted a request to HUD to retain the surplus cash for future capital improvements to the property.