FAC Explorer

Audit 24743

FY End
2022-06-30
Total Expended
$986,734
Findings
2
Programs
2
Organization: Housing Authority of West New York (NJ)
Year: 2022 Accepted: 2023-01-18
Auditor: Phillip Morgan & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29802 2022-001 Significant Deficiency - N
606244 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $951,800 Yes 1
14.195 Section 8 Housing Assistance Payments Program $34,934 - 0

Contacts

Name Title Type
AAAAAAAAAAAA Phillip Grace Auditee
2053870541 Phillip D. Morgan Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note A - Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of Hamilton Manor, Inc., HUD Project No. 062-HD037, and is presented on the accrual basis of accounting. 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 Hamilton Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hamilton Manor, Inc.Note B Summary of Significant Accounting PoliciesExpenditures reported in 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. Federal awards expended include the amount of new Federal loans made or received during the year, plus the beginning of the year balance of loans from previous years for which there are continuing compliance requirements, plus any interest subsidy, cash, or administrative cost allowance received. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. 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 951800. Note C U.S. Department of Housing and Urban Development Loan ProgramThe Project has received a U.S. Department of Housing and Urban Development capital advance under Section 811 of the Cranston-Gonzalez National Affordable Housing Act. Capital advances under Section 811 bear no interest and need not be repaid so long as the housing remains available for very low income disabled persons for at least 40 years. There were no additional advances received during the year. The balance of the capital advance outstanding at July 1, 2021 was $951,800.

Finding Details

Finding 2022-001
2022-001 ? Criteria ? Hamilton Manor, Inc. (the Project) operates an apartment complex under the Section 811 Capital Advance Program of the Department of Housing and Urban Development (HUD). This federal program requires monthly deposits into a Replacement Reserve Account. Funds in this separate bank account may only be spent with HUD?s approval. ? Condition ? Three (3) of the required twelve (12) monthly deposits to the Replacement Reserve were missed. ? Cause ? The Project?s internal controls over compliance with this requirement include assigning the responsibility to make the monthly deposits to appropriate personnel. Staff turnover occurred in this position during the fiscal year, and the responsibility for ensuring compliance with this requirement was not properly communicated to the new staff. ? Effect ? The Project was required to deposit $6,000 ($500 per month) to the Replacement Reserve, but only deposited $4,500. ? Recommendation - The Project should immediately deposit $1,500 into the Replacement Reserve and fully communicate the importance of compliance with this requirement to its staff. ? Views of Responsible Officials ? We agree with the content of this finding and the auditor?s recommendations.
Finding 2022-001
2022-001 ? Criteria ? Hamilton Manor, Inc. (the Project) operates an apartment complex under the Section 811 Capital Advance Program of the Department of Housing and Urban Development (HUD). This federal program requires monthly deposits into a Replacement Reserve Account. Funds in this separate bank account may only be spent with HUD?s approval. ? Condition ? Three (3) of the required twelve (12) monthly deposits to the Replacement Reserve were missed. ? Cause ? The Project?s internal controls over compliance with this requirement include assigning the responsibility to make the monthly deposits to appropriate personnel. Staff turnover occurred in this position during the fiscal year, and the responsibility for ensuring compliance with this requirement was not properly communicated to the new staff. ? Effect ? The Project was required to deposit $6,000 ($500 per month) to the Replacement Reserve, but only deposited $4,500. ? Recommendation - The Project should immediately deposit $1,500 into the Replacement Reserve and fully communicate the importance of compliance with this requirement to its staff. ? Views of Responsible Officials ? We agree with the content of this finding and the auditor?s recommendations.