FAC Explorer

Audit 311146

FY End
2023-09-30
Total Expended
$21.30M
Findings
4
Programs
5
Organization: Housing Authority of the City of Hoboken (NJ)
Year: 2023 Accepted: 2024-06-30
Auditor: Polcari & Company CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
404754 2023-001 Material Weakness Yes EN
404755 2023-002 Material Weakness Yes EN
981196 2023-001 Material Weakness Yes EN
981197 2023-002 Material Weakness Yes EN

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $7.90M Yes 1
14.872 Public Housing Capital Fund $4.94M - 0
14.871 Section 8 Housing Choice Vouchers $4.83M Yes 1
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $3.07M - 0
14.218 Community Development Block Grants/entitlement Grants $555,925 - 0

Contacts

Name Title Type
EBLXKTMQ6NG7 Emil Kotherithara Auditee
2017890370 Michael Maurice Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: The Schedule of Expenditures of Federal Awards is presented in accordance with generally accepted accounting principles and is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis cost rate. Basis of Presentation - The Schedule of Expenditures of Federal Awards is presented in accordance with generally accepted accounting principles and is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements.
Title: Note 2 Accounting Policies: The Schedule of Expenditures of Federal Awards is presented in accordance with generally accepted accounting principles and is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis cost rate. There were no subrecipient activities during the audit period.
Title: Note 3 Accounting Policies: The Schedule of Expenditures of Federal Awards is presented in accordance with generally accepted accounting principles and is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis cost rate. The Authority has elected not to use the 10% de minimis cost rate.
Title: Note 4 Accounting Policies: The Schedule of Expenditures of Federal Awards is presented in accordance with generally accepted accounting principles and is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis cost rate. The Authority received no non-cash assistance.
Title: Note 5 Accounting Policies: The Schedule of Expenditures of Federal Awards is presented in accordance with generally accepted accounting principles and is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis cost rate. 5. The Authority received CDBG-DR Funds loaned through NJHMFA. The total amount of the loan funds drawn at September 30, 2021 was $5,593,955.

Finding Details

Finding 2023-001
Low Rent Public Housing (CFDA#14.850) Type of Deficiency: Material Weakness Compliance Requirement: Eligibility and Special Tests We selected forty files for the Low Rent Public Housing Program. 12 of the files were missing required documentation from EIV, 9866 forms, birth certificates and one the entire recertification for the year sampled was missing Cause: The Authority did not implement the proper controls to ensure that all tenants are properly recertified each year. Condition: The Authority did not follow the compliance requirements of 24CFR sections 5.230, 5.609 and 960.259. This was condition was noted as a finding the prior year audit report. Effect of Condition: The effect of not complying with the requirements in the Compliance Supplement may result in ineligible individuals being admitted to the program and improper rent calculations. Recommendation: We recommend that the Authority adopt controls and procedures to ensure compliance with the requirements of the Low Rent Public Housing Program. Questioned Costs -$0- Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly.
Finding 2023-002
Finding 2023-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. • One file was missing the 50058 form. • Four files did not include documentation for EIV. • Seventeen files did not include a signed HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly. Finding 2023-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. • One file was missing the 50058 form. • Four files did not include documentation for EIV. • Seventeen files did not include a signed HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly. Finding 2023-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. • One file was missing the 50058 form. • Four files did not include documentation for EIV. • Seventeen files did not include a signed HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly.
Finding 2023-001
Low Rent Public Housing (CFDA#14.850) Type of Deficiency: Material Weakness Compliance Requirement: Eligibility and Special Tests We selected forty files for the Low Rent Public Housing Program. 12 of the files were missing required documentation from EIV, 9866 forms, birth certificates and one the entire recertification for the year sampled was missing Cause: The Authority did not implement the proper controls to ensure that all tenants are properly recertified each year. Condition: The Authority did not follow the compliance requirements of 24CFR sections 5.230, 5.609 and 960.259. This was condition was noted as a finding the prior year audit report. Effect of Condition: The effect of not complying with the requirements in the Compliance Supplement may result in ineligible individuals being admitted to the program and improper rent calculations. Recommendation: We recommend that the Authority adopt controls and procedures to ensure compliance with the requirements of the Low Rent Public Housing Program. Questioned Costs -$0- Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly.
Finding 2023-002
Finding 2023-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. • One file was missing the 50058 form. • Four files did not include documentation for EIV. • Seventeen files did not include a signed HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly. Finding 2023-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. • One file was missing the 50058 form. • Four files did not include documentation for EIV. • Seventeen files did not include a signed HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly. Finding 2023-2 Housing Choice Voucher Program (CFDA#14.871) Material Non-Compliance Material Weakness in Internal Control over Compliance Tenant files for the Housing Choice Voucher Program are materially incomplete. Criteria Entities receiving Federal Funds under the Uniform Guidance are required to comply with certain conditions of the grant agreement and are required to have in place an internal control system that reasonably assures compliance with the requirement for Federal Awards such as Housing Choice Vouchers under 24 CFR Section 982.1. Cause During inspection of twelve Housing Choice Voucher program files, we noted the following exceptions. • One file was missing the 50058 form. • Four files did not include documentation for EIV. • Seventeen files did not include a signed HUD Form 9886 Effect of Condition The Authority is not in compliance with certain regulations regarding the Housing Choice Voucher Program under 24 CFR Section 982.1. Recommendation We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with 2 CFR-200. Questioned Costs: $0 Response: The following steps have been and are being taken regarding tenant certifications: 1. Staff has attended HOTMA training: An In-Depth Review of Programmatic Changes on 5/21/24 2. A new position was created at the Authority. Our most senior Manager is now our dedicated Quality Control Specialist and will be responsible for reviewing 100% of our files yearly.