April 13, 2023
Risk Management Bulletin 2023-1:
2023 Base Fee and Maximum Fee for Accountant Engagement Contracts
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.  
Attention Managing Agents and Owners:
Compilation Engagement Letter for CPA’s F.Y.E: December 31, 2023:
Please submit three (3) contracts with original signatures six (6) months prior to the end of the development’s fiscal year.

The “base fee” has been increased to $4,790 and the “maximum fee” adjustment has been calculated at approximately 120% thereof to $5,750. Fees for accountants that did not prepare the report in the previous year cannot exceed the lessor of (1) the prior year’s fee plus 10% or (2) the “maximum fee”.
Engagement Letters Under a 2 Year Contract:
If you have completed a two (2) year contract last year; the second year of those contracts, which is the audit prepared for the period (year) ending between 09/30/2023 – 06/30/2024, the fee cannot exceed the lessor of (1) the prior year’s fee plus 10% or (2) the “maximum fee of $18,390. Six months prior to the end of the development’s fiscal year-end, please submit to RiskMgmt@njhmfa.gov the agreed-upon fee with your CPAs for the period (year) ending between 09/30/2023 – 06/30/2024. 

Please note that you will be required to complete new contracts next year for the period (year) ending between 09/30/2024 – 06/30/2025. We will do our mailing for this in March 2024.
Engagement Letter for Independent Accountants F.Y.E: December 31, 2023:
Please be reminded that the engagement contract for the Independent Certified Public Accountant is available on our website. We no longer mail blank audit contracts. Please download the contracts from the Agency’s website. Should you have any difficulties downloading the contracts, please email  RiskMgmt@njhmfa.gov for assistance.
 
Please submit three (3) contracts with original signatures six (6) months prior to the end of the development’s fiscal year.
 
The “base fee” has been increased to $14,710 and the “maximum fee” has been recalculated to $18,390. Fees for auditors that did not perform the audit in the previous year cannot exceed the “base fee”. Fees for “repeat” auditors cannot exceed the lessor of (1) the prior year’s fee plus 10% or (2) the “maximum fee”.
 
Please be reminded that Accountant Engagement Contracts may be completed for a maximum of two (2) years.
Questions? Need Help? 

Please do not hesitate to contact our office with any inquiries regarding this announcement. Please email Kyle Graser at KGraser@njhmfa.gov for further assistance.
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 | NJHousing.gov