NORTHWEST NEW JERSEY ECHO HOUSING CORPORATION (ECHO) 031-EE022

EIN: 223385826

UEI: GSA_MIGRATION

Data as of August 23, 2026

NORTHWEST NEW JERSEY ECHO HOUSING CORPORATION (ECHO) 031-EE0224 audit years17 findings17 repeat
4
Audit Years
17
Total Findings
17
Repeat Findings

FY 2019-08-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on November 19, 2019. 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 19, 2020 (2287 days ago).

What is a management decision? →
2019-004
Eligibility
REPEAT

Tenant application, eligibility determination, and recertification for two tenants was not obtained from HUD. The same finding is included in the 2018 single audit report as item 2018-004. Criteria: The Project is required to submit tenant recertifications on an annual basis to be found eligible by HUD in order to reside in modular housing units and receive rental assistance. Effect or Potential Effect: Two tenants are occupying modular housing units without proper recertification. The tenants could potentially be removed from the units to allow a tenant with proper recertification to reside. Context: Tenant files were not reviewed, as management has not maintained current recertification of income. Cause: Procedures are in place for supervisory approval of documentation before documentation is submitted to HUD. As a result of management turnover, the Project did not recertify its tenants in a timely fashion and, as a result, the proper documentation was not filed with HUD. Recommendation: The Project should recertify tenants on an annual basis and submit proper documentation with HUD in a timely fashion. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

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Full finding narrative

Item No. 2019-004: Section 202, CFDA 14.157 Tenant Application, Eligibility, and Recertification Condition: Tenant application, eligibility determination, and recertification for two tenants was not obtained from HUD. The same finding is included in the 2018 single audit report as item 2018-004. Criteria: The Project is required to submit tenant recertifications on an annual basis to be found eligible by HUD in order to reside in modular housing units and receive rental assistance. Effect or Potential Effect: Two tenants are occupying modular housing units without proper recertification. The tenants could potentially be removed from the units to allow a tenant with proper recertification to reside. Context: Tenant files were not reviewed, as management has not maintained current recertification of income. Cause: Procedures are in place for supervisory approval of documentation before documentation is submitted to HUD. As a result of management turnover, the Project did not recertify its tenants in a timely fashion and, as a result, the proper documentation was not filed with HUD. Recommendation: The Project should recertify tenants on an annual basis and submit proper documentation with HUD in a timely fashion. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Prior Finding References

2018-004

About Eligibility →
2019-005
Cash Management
MATERIAL WEAKNESSREPEAT

Required monthly deposits into both the Replacement Reserve and the Moving Reserve were not performed in accordance with the HUD Regulatory Agreement. The same finding is included in the 2018 single audit report as item 2018-005. Criteria: The Project is required to make monthly deposits into both the Replacement Reserve and the Moving Reserve in accordance with the HUD Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the provisions of the HUD Regulatory Agreement. The effect could potentially result in a shortfall of funds to cover future costs. Context: Bank statements of both the Project's Replacement Reserve and the Moving Reserve were reviewed for confirmation of monthly deposits. The test found that the Project has failed to make required monthly deposits into either the Replacement Reserve or the Moving Reserve in accordance with the HUD Regulatory Agreement. Cause: The Project is currently working through a backlog of monthly rent assistance subsidies from HUD and does not have any surplus funds at its disposal to fund either its Replacement Reserve or its Moving Reserve accounts. Recommendation: The Project should deposit the required funds into both the Replacement Reserve and the Moving Reserve in a timely manner and expedite the process of resolving the backlog of rental assistance subsidies from HUD to bring the accounts to current status. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

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Item 2019-005: Section 202, CFDA 14.157 HUD ? Restricted Deposits (same finding as Item 2018-001) Condition: Required monthly deposits into both the Replacement Reserve and the Moving Reserve were not performed in accordance with the HUD Regulatory Agreement. The same finding is included in the 2018 single audit report as item 2018-005. Criteria: The Project is required to make monthly deposits into both the Replacement Reserve and the Moving Reserve in accordance with the HUD Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the provisions of the HUD Regulatory Agreement. The effect could potentially result in a shortfall of funds to cover future costs. Context: Bank statements of both the Project's Replacement Reserve and the Moving Reserve were reviewed for confirmation of monthly deposits. The test found that the Project has failed to make required monthly deposits into either the Replacement Reserve or the Moving Reserve in accordance with the HUD Regulatory Agreement. Cause: The Project is currently working through a backlog of monthly rent assistance subsidies from HUD and does not have any surplus funds at its disposal to fund either its Replacement Reserve or its Moving Reserve accounts. Recommendation: The Project should deposit the required funds into both the Replacement Reserve and the Moving Reserve in a timely manner and expedite the process of resolving the backlog of rental assistance subsidies from HUD to bring the accounts to current status. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Prior Finding References

2018-005

About Cash Management →
2019-006
Cash Management
REPEAT

Failure to establish a Residual Receipts Reserve in accordance with the HUD Regulatory Agreement. The same finding is included in the 2018 single audit report as item 2018-006. Criteria: The Project is required to establish a Residual Receipts Reserve in accordance with the HUD Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the provisions of the HUD Regulatory Agreement. Context: Review of the Project's books and records indicated that a Residual Receipts Reserve was not established in accordance with the HUD Regulatory Agreement. Cause: The Project is currently working through a backlog of monthly rent assistance subsidies from HUD and does not have any surplus funds at its disposal to fund its Residual Receipts Reserve account. Recommendation: The Project should establish a Residual Receipts Reserve in a timely manner and deposit any surplus funds from prior fiscal years required to be deposited in accordance with the HUD Regulatory Agreement. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

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Item No. 2019-006: Section 202, CFDA 14.157 Failure to Establish Residual Receipts Reserve (same finding as 2019-002) Condition: Failure to establish a Residual Receipts Reserve in accordance with the HUD Regulatory Agreement. The same finding is included in the 2018 single audit report as item 2018-006. Criteria: The Project is required to establish a Residual Receipts Reserve in accordance with the HUD Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the provisions of the HUD Regulatory Agreement. Context: Review of the Project's books and records indicated that a Residual Receipts Reserve was not established in accordance with the HUD Regulatory Agreement. Cause: The Project is currently working through a backlog of monthly rent assistance subsidies from HUD and does not have any surplus funds at its disposal to fund its Residual Receipts Reserve account. Recommendation: The Project should establish a Residual Receipts Reserve in a timely manner and deposit any surplus funds from prior fiscal years required to be deposited in accordance with the HUD Regulatory Agreement. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Prior Finding References

2018-006

About Cash Management →
2019-007
Cash Management
REPEAT

Failure to establish a deposit held in trust in accordance with the HUD Regulatory Agreement. The same finding is included in the 2018 single audit report as item 2018-007. Criteria: The Project is required to establish a deposit held in trust in accordance with the HUD Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the provisions of the HUD Regulatory Agreement. Context: Review of the Project's books and records indicated that a deposit held in trust was not established in accordance with the HUD Regulatory Agreement. Cause: The Project is operating to provide modular housing units to qualified, low income elderly individuals. Due to the financial situations of the Project's tenants, a tenant security deposit was not requested. As a result of the failure to request a security deposit, a deposit held in trust was not established in the name of the Project in trust for the tenants. Recommendation: The Project should establish a deposit held in trust in a timely manner and charge tenants a security deposit equal to one month's rent or $50, whichever is greater, in accordance with the HUD Regulatory Agreement. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

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Item No. 2019-007: Section 202, CFDA14.157 Failure to Establish a Deposit Held in Trust (same finding as 2019-003) Condition: Failure to establish a deposit held in trust in accordance with the HUD Regulatory Agreement. The same finding is included in the 2018 single audit report as item 2018-007. Criteria: The Project is required to establish a deposit held in trust in accordance with the HUD Regulatory Agreement. Effect or Potential Effect: The Project is not in compliance with the provisions of the HUD Regulatory Agreement. Context: Review of the Project's books and records indicated that a deposit held in trust was not established in accordance with the HUD Regulatory Agreement. Cause: The Project is operating to provide modular housing units to qualified, low income elderly individuals. Due to the financial situations of the Project's tenants, a tenant security deposit was not requested. As a result of the failure to request a security deposit, a deposit held in trust was not established in the name of the Project in trust for the tenants. Recommendation: The Project should establish a deposit held in trust in a timely manner and charge tenants a security deposit equal to one month's rent or $50, whichever is greater, in accordance with the HUD Regulatory Agreement. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditors? recommendations. Per agreement with HUD, the Project is currently in the process of dissolving the program and disposing of the seven remaining modular units.

Prior Finding References

2018-007

About Cash Management →

FY 2018-08-31

FAC accepted this audit on December 19, 2018 — management decision was due June 19, 2019.

2018-004
Eligibility
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-004

About Eligibility →
2018-005
Cash Management
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-005

About Cash Management →
2018-006
Cash Management
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-006

About Cash Management →
2018-007
Cash Management
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2017-007

About Cash Management →

FY 2017-08-31

FAC accepted this audit on December 21, 2017 — management decision was due June 21, 2018.

2017-004
Eligibility
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2016-005

About Eligibility →
2017-005
Cash Management
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2016-006

About Cash Management →
2017-006
Cash Management
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2016-008

About Cash Management →
2017-007
Cash Management
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2016-009

About Cash Management →

FY 2016-08-31

FAC accepted this audit on February 12, 2017 — management decision was due August 12, 2017.

2016-005
Eligibility
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-005

About Eligibility →
2016-006
Cash Management
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-006

About Cash Management →
2016-007
Reporting
MATERIAL WEAKNESSREPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-007

About Reporting →
2016-008
Cash Management
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-008

About Cash Management →
2016-009
Cash Management
REPEAT

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

Prior Finding References

2015-009

About Cash Management →

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