FAC Explorer

Audit 44959

FY End
2022-09-30
Total Expended
$20.30M
Findings
4
Programs
7
Organization: Housing Authority of the City of Hoboken (NJ)
Year: 2022 Accepted: 2023-06-29
Auditor: Polcari & Company CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46524 2022-001 Material Weakness Yes EN
46525 2022-002 Material Weakness - EN
622966 2022-001 Material Weakness Yes EN
622967 2022-002 Material Weakness - EN

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $7.40M Yes 1
14.871 Section 8 Housing Choice Vouchers $4.78M Yes 1
14.872 Public Housing Capital Fund $3.97M Yes 0
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $3.53M - 0
14.U01 Public Housing Cares Act Funding $469,571 - 0
14.218 Community Development Block Grants/entitlement Grants $96,656 - 0
14.U02 Housing Choice Voucher Cares Act Funding $64,621 - 0

Contacts

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

Notes to SEFA

Title: NOTE 3 Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no subrecipient activities during the audit period.
Title: NOTE 4 Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority received no non-cash assistance.
Title: NOTE 5 Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority received CDBG-DR Funds loaned through NJHMFA. The total amount of the loan funds drawn at September 30, 2022 was $3,525,696

Finding Details

Finding 2022-001
Finding 2022-001 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. 10 of the files were missing the EIV, and two were not recertified, 2 had no 9886 form, 2 had no evidence of choice of flat rent given and 1 had no 50058 form. 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. After contracting a third-party entity to review 10% of our files in Oct 2022, the findings of said review led to the recommendation to retrain staff. 2. All Managers and assistant Managers received HCV & PH Rent Calculation Training In June 2023. 3. We are also currently working with our TA from HUD, Ms. Valerie Jackson. Ms. Jackson has identified and is about to roll out training for our staff, to uniform and streamline our tenant files.
Finding 2022-002
Finding 2022-2 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. ? Two files were not recertified. ? One file did not include documentation for EIV. ? Three files HAP payment did not agree to the HAP register. ? Two files did not include 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. After contracting a third-party entity to review 10% of our files in Oct 2022, the findings of said review led to the recommendation to retrain staff. 2. All Managers and assistant Managers received HCV & PH Rent Calculation Training In June 2023. 3. We are also currently working with our TA from HUD, Ms. Valerie Jackson. Ms. Jackson has identified and is about to roll out training for our staff, to uniform and streamline our tenant files.
Finding 2022-001
Finding 2022-001 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. 10 of the files were missing the EIV, and two were not recertified, 2 had no 9886 form, 2 had no evidence of choice of flat rent given and 1 had no 50058 form. 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. After contracting a third-party entity to review 10% of our files in Oct 2022, the findings of said review led to the recommendation to retrain staff. 2. All Managers and assistant Managers received HCV & PH Rent Calculation Training In June 2023. 3. We are also currently working with our TA from HUD, Ms. Valerie Jackson. Ms. Jackson has identified and is about to roll out training for our staff, to uniform and streamline our tenant files.
Finding 2022-002
Finding 2022-2 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. ? Two files were not recertified. ? One file did not include documentation for EIV. ? Three files HAP payment did not agree to the HAP register. ? Two files did not include 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. After contracting a third-party entity to review 10% of our files in Oct 2022, the findings of said review led to the recommendation to retrain staff. 2. All Managers and assistant Managers received HCV & PH Rent Calculation Training In June 2023. 3. We are also currently working with our TA from HUD, Ms. Valerie Jackson. Ms. Jackson has identified and is about to roll out training for our staff, to uniform and streamline our tenant files.