The accompanying schedules of expenditures of federal awards and state financial assistance (the "Schedules") include the federal award and state financial activity of the Organization under programs of the federal and state government for the year ended December 31, 2025. The information in these Schedules 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") and State of New Jersey Circular Letter 25-12-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid (the "Circular"). Because the Schedules present only a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, change in net assets or cash flows of the Organization.
The Organization had the following loan balances outstanding as of December 31, 2025. These programs are also included in the federal expenditures presented in the Schedule as follows: Federal Assistance Cluster/Program Title Listing Number Amount Rural Rental Housing Loans - Emerald Terrace 10.415 2,088,748 $ Rural Rental Housing Loans - Emerald Terrace 10.415 393,883 HOME Investment Partnership Program loan balance 14.239 820,000 Total Expenditures of Federal Awards 3,302,631
The total federal expenditures reported for the Organization’s award from the U.S. Department of Health and Human Service – Head Start Program for the year ended December 31, 2025, excludes non-cash matching amounts of $213,700, which is required by the grantor.
Government grants revenue per audit: $ 12,405,044 Add: USDA-RD loan balances 2,482,631 Add: HOME Investment Partnership loan balance 820,000 Add: Emerald Terrace subsidy (rental income) 216,393 Add: Prior period restatement (see Note P) 281,377 Less: County grant income not included on SEFA or SESA (125,850) Adjusted government grants revenue per audit 16,079,595 Expenditures per Schedules Schedule of Federal Awards $ 14,145,812 Schedule of State Financial Assistance 1,933,783 Total expenditures per Schedules 16,079,595 Variance $ -
During the year ended December 31, 2025, the Organization identified an error related to expenditures reported in the prior year under the U.S. Department of Health and Human Services Community Services Block Grant (CSBG) program (Assistance Listing #93.569). Specifically, certain expenditures totaling $281,377 that were incurred in fiscal year 2024 were not reported in the 2024 Schedule of Expenditures of Federal Awards. In accordance with Uniform Guidance, the 2025 Schedule of Expenditures of Federal Awards has been adjusted to include these prior year expenditures in the current period. Additionally, amounts totaling $310,251 and $363,020 were reported on the Schedule of Expenditures of Federal Awards for the years ended December 31, 2024 and 2023, respectively. As described in Note P to the consolidated financial statements, these amounts were repaid to the grantor during the year ended December 31, 2025 in accordance with a right-of-return clause contained within the grant agreement. The Schedule of Expenditures of Federal Awards for 2025 has not been adjusted for this matter.