Finding 366494 (2022-001)

Criteria: The Organization is required to make quarterly deposits of $150 required by NJ HMFA into repair and replacement escrow accounts. Condition: The Organization did not make quarterly deposits of $150 required by NJ HMFA into repair and replacement escrow accounts. Cause: There was lack of oversight over the financial activity of the Capstan properties during the year ended December 31, 2022. Effect: The repair and replacement escrow accounts are underfunded by $600 as of December 31, 2022. Recommendation: We recommend that the Organization review the financial activity for the Capstan properties on a monthly basis. We also recommend that they implement controls to ensure that the quarterly deposits are made on a timely basis. Management’s Response: HABcore will follow-up with NJ HMFA to determine if the $150 quarterly deposits are still necessary, and if so, will catch up and comply.