EIN: 222163029
UEI: FQL8ZDL7QGF9
Data as of August 20, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 6, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 6, 2024, which was (837 days ago).
What is a management decision? →Finding 2022-001 - Significant Deficiency - Internal Control over Financial Reporting. Criteria - The NJ Unclaimed Property rules and regulations require that unclaimed checks older 3 years are considered to be abandoned and must be remitted to the State of New Jersey. Unclaimed property must be turned over to the State Treasurer of New Jersey. We noted that the Project has outstanding checks that are over three years old that have not been voided or re-issued and should be remitted to the State of New Jersey. Condition - During our audit, we identified outstanding checks that have been included in the financial records that are older than 3 years. Cause - The entity did not void or reissue the stale checks before they were considered to be abandoned by the state regulations. Effect - As a result of this condition, the Project was not in compliance with New Jersey Unclaimed Property Rules and Regulations and did not file the appropriate annual reports. Recommendation - Management should complete the appropriate voluntary correction forms with the State of New Jersey and remit any abandoned property. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and will review the outstanding checks older than three years and take appropriate action, may it be void the old outstanding check, reissue the check or file voluntary correction forms with the State of NJ.
Management agrees with the finding and will review the outstanding checks older than three years and take appropriate action, may it be void the old outstanding check, reissue the check or file voluntary correction forms with the State of NJ.
2021-003
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 8, 2021. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 8, 2022, which was (1535 days ago).
What is a management decision? →Criteria - Accounting principles generally accepted in the United States of America (GAAP), as prescribed by the Governmental Accounting Standards Board, require entities to establish and maintain effective internal control over financial reporting to prepare timely, accurate financial reports. Condition - During 2021, management disclosed that a cash account with a balance of approximately $130,000 had been excluded from the entity?s financial reporting. The account was utilized to deposit rental revenue from space within the building, see Finding 2021-004 Cause - The Project's closing process did not operate effectively to ensure that all transactions and accounts were recorded timely and accurately. Effect - As a result of this condition, the Project's accounting records were misstated in prior years by amounts relating to unrecorded commercial rental income. In addition, the Project was exposed to an increased risk that misstatements (whether caused by error or fraud) may occur and not be detected and corrected by management in a timely manner.
Recommendation - The adjustments noted above have been reviewed by management, posted to the Project's records, and are reported correctly in the audited financial statements for the fiscal year ended June 30, 2021. The omission was reported to the Project's HUD representative. Views of Responsible Officials and Planned Corrective Actions - Management has reviewed and takes full responsibility for the audit adjustments recommended by the auditors and has posted such entries to the Project's accounting system.
Criteria - Accounting principles generally accepted in the United States of America (GAAP), as prescribed by the Governmental Accounting Standards Board, require entities to establish and maintain effective internal control over financial reporting to prepare timely, accurate financial reports. Condition - During our audit, we identified that Emerald Management erroneously overcharged the Project for salaries relating to the project manager and other employees during the fiscal year ended June 30, 2021. Cause - The Project's closing process did not operate effectively to ensure that all invoices were properly reviewed and approved during the current year. Effect - As a result of this condition, the Project's accounting records were initially misstated by amounts relating to salaries, payroll taxes and employee benefits.
Recommendation - The adjustments noted above have been reviewed by management, posted to the Project's records, and are reported correctly in the audited financial statements. Views of Responsible Officials and Planned Corrective Actions - Management has reviewed and takes full responsibility for the audit adjustments recommended by the auditors and posted such entries to the Project's accounting system.
Criteria - The NJ Unclaimed Property rules and regulations require that unclaimed checks older 3 years are considered to be abandoned and must be remitted to the State of New Jersey. Unclaimed property must be turned over to the State Treasurer of New Jersey. We noted that the Project has outstanding checks that are over three years old that have not been voided or re-issued and should be remitted to the State of New Jersey. Condition - During our audit, we identified outstanding checks that have been included in the financial records that are older than 3 years. Cause - The entity did not void or reissue the stale checks before they were considered to be abandoned by the state regulations. Effect - As a result of this condition, the Project was not in compliance with New Jersey Unclaimed Property Rules and Regulations and did not file the appropriate annual reports.
Recommendation - Management should complete the appropriate voluntary correction forms with the State of New Jersey and remit any abandoned property. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and will review the outstanding checks older than three years and take appropriate action, may it be void the old outstanding check, reissue the check or file voluntary correction forms with the State of NJ.
Criteria - HUD insured and/or subsidized multifamily properties may receive non-residential rental income from commercial space. The standard Regulatory Agreement requires prior written approval from HUD before the project Owner may enter into a lease or perform structural alterations to the property for market rate properties in accordance with HUD Handbook 4350.1. Condition - During our audit, management identified to us that the Riley Center and two office spaces with the building (which relate to the off-balance sheet account mentioned in Finding 2021-001) were missing formal written approval to operate in commercial spaces within the building. Cause - Project's management did not obtain proper authorization from HUD regarding the utilization of commercial space and therefore allowed an unauthorized commercial tenant to occupy space. Effect - The Project was in violation of the regulatory agreement and HUD Notice H 2011-10.
Recommendation - Management should obtain the proper approval from HUD regarding commercial tenants or proceed with having the current commercial tenants vacate the space. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and has been in contact with HUD who has approved the operating of the two commercial tenants in the building and approved them utilizing vacant office space. The Riley Center, who has been in the Westwood House building virtually since inception, has closed as of Sept 30, 2021.
Criteria - The Project failed to lease vacant apartments to qualified tenants during the Covid -19 pandemic. Condition - The Project was in default of it's obligations under the Housing Assistance Payments ("HAP") contract. The Project did not develop and emergency operating plan to ensure that eligible tenants could be moved into the building safely during the pandemic. Cause - Management believed that it was operating under local and state guidelines and was acting to protect the health and safety of existing tenants during the pandemic but ultimately did not implement a proper plan to resume having vacant apartments filled. HUD officials determined management did not fill the vacant apartments within a reasonable timeframe. Effect - The Project was in violation of the regulatory agreement with HUD and is in default of the HAP contract and is at risk of enforcement action and civil penalties. Current members of the board may be excluded from participation in any government funded programs.
Recommendation - The Project has remedied the situation and has lifted the move-in moratorium. The board of directors developed an emergency operating plan which was submitted and approved by HUD. Views of Responsible Officials and Planned Corrective Actions - As per HUD's request, the Project implemented an Emergency Operating Plan ("EOP") to begin contacting eligible individuals/families to vet them for admission to the project and grant them permission to move in by as soon as December 21, 2020. The Project provided HUD with evidence of letters, phone call log etc. to demonstrate that is has contacted individuals on the wait list and also to provide HUD with a copy of the board approved EOP. The Project believes it fully complied with the items requested in the notice and in the time frames set in the notice. HUD has responded on October 27th that all deficiencies have been resolved.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and compliance status.
Start monitoring →Single Audit Intelligence is an independent tool powered by Federal Audit Clearinghouse data. Not affiliated with GSA, OMB, or any federal agency.