August 15, 2022
Asset Management Bulletin 2022-6:
“Allowance” for “Bookkeeping and Accounting/Computer Charges” Chargeable to Operations (For the Preparation of MORs/QORs)
NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.  
We are pleased to inform you that the “Allowance” Chargeable to Operations is hereby increased effective January 1, 2023.
 
The new allowance shall be calculated at $7.61 per unit per month, but not to exceed $1,170.00 per month. The “allowance” will be adjusted annually based on the CPI index. The Agency will continue to notify you annually.
 
As in the past, the allowance will be for all accounting services related to MOR/QOR preparation whether fully or partially computerized provided that the following conditions are met:

  1. The general ledger is maintained current.
  2. The Operating Reports, monthly (MOR) or quarterly (QOR), are submitted properly, complete and on time.
  3. The year-end trial balance and auxiliary work papers are completed and available for audit no later than 30 days after year-end, as described below:
a. Trial balances to be prepared on the “accrual basis” complete with opening and closing adjusting journal entries, including accrued and prepaid expenses, amortization and depreciation charges.
b. Auxiliary work papers to be prepared as they related to the reconciliations of cash and other accounts and the analyses identified as items 2e, 2f, 2g, 2h, 2i, 2j, 2k,2l, 2m, of the standard auditor’s engagement letter.
The allowance shall be forfeited for those months in which the MOR or QOR is submitted more than ten days late, and it may be revoked if the system is found materially deficient in respect to the preceding. Any amount charged to operations over the allowable amount will be required to be reimbursed by owner/agent.
Questions?

Please do not hesitate to contact our office with any inquiries regarding this announcement. Please email Lavern Henry at LHenry@njhmfa.gov for further assistance.
Was this email forwarded to you? Sign up for our email list to stay up to date on NJHMFA news.
New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov