Township government

The PILOT audit and the agreements behind it

Warren awarded Holman Frenia Allison up to $49,400 for a forensic audit of its active PILOT agreements and heard the firm's presentation on May 14, 2026. Six 2026 budget lines total $1.91 million by LocalWhy's addition; LocalWhy has not reviewed the presentation.

Checked against the primary record on . Every figure on this page is sourced at the foot of the article.

Audit presented Last moved

What happens next

The May 14 minutes state that a copy of the presentation was attached; LocalWhy has not reviewed the presentation.

Warren’s 2026 budget anticipates $1,910,000 in payments in lieu of taxes (PILOTs) from six properties, against $27,058,362.93 in total appropriations — about 7.1 percent by LocalWhy’s arithmetic. On January 6, 2026 Committeeman Daniel J. McCarey told the reorganization meeting the Township “will be going out to bid to hire a forensic accounting firm to conduct an independent audit of all PILOT programs,” and said the step reflected “the Township Committee’s fiduciary responsibility to the residents and is not based on suspicion or mistrust.”

On February 19, 2026 the Committee awarded the work to Holman Frenia Allison, PC, by Resolution 2026-085: a “forensic audit of active PILOT agreements,” not to exceed $49,400.00. The resolution lists two proposals, HFA at $49,400.00 and Mercadien at $75,000.00, and states no evaluation method, period covered or auditing standard. The consent agenda carrying it passed with McCarey, Blick, Kian and Fine voting yes and Croson abstaining.

HFA presented at the May 14, 2026 meeting. The minutes state “A copy of the presentation is attached”. LocalWhy has not reviewed the presentation or findings. No vote followed. Rick dePinho of Wilshire Road asked what the audit cost. The minutes record the question but provide no answer.

The audit’s subjects appear in the budget as revenue lines (LocalWhy’s addition of the printed figures):

Payer as printed2026 anticipated2025 anticipated
PILOT – Warren Crossing$390,000.00$350,000.00
PILOT – Flag Plaza$80,000.00$80,000.00
PILOT – Villas at Warren$1,300,000.00$1,280,000.00
PILOT – Heritage at Warren$50,000.00$44,000.00
PILOT – Diamond at Warren$55,000.00$30,000.00
PILOT – Warren LIHTC Urban Renewal LLC$35,000.00$40,000.00

The Township’s public files contain the Warren LIHTC Urban Renewal LLC agreement for 80 low- and moderate-income units on Block 114, Lot 22.03, accepted by Resolution 2019-127 and Ordinance 19-38. A 2019 Echoes-Sentinel report said the Committee adopted Flag Plaza’s financial agreement on August 15, 2019; LocalWhy has not reviewed that agreement. Agreements for Warren Crossing, Villas at Warren, Heritage at Warren and Diamond at Warren also need a browser.

Resolution 2022-191 divides the municipal share of any multi-family PILOT the Committee allows after its adoption, 60 percent to the Township and 40 percent to the Board of Education, with the Board never receiving more than it would without a PILOT.

The PILOT audit and the agreements behind it, explained

Timeline

Each dated event on this issue, oldest first, linked to the full sourced entry.

  1. Active Township announces a forensic audit of all PILOT programsAt the reorganization meeting, Committeeman Daniel J. McCarey said Warren would bid out an independent forensic audit of all its PILOT programs, calling it a fiduciary responsibility and not based on suspicion.
  2. Resolved Committee awards the PILOT audit to Holman Frenia AllisonResolution 2026-085 gave Holman Frenia Allison a contract not to exceed $49,400.00 for a forensic audit of active PILOT agreements. Croson abstained; the other four members voted yes.
  3. Active HFA presents the PILOT audit; minutes refer to an attachmentHolman Frenia Allison presented its PILOT audit findings to the Committee. The minutes say a copy of the presentation is attached; LocalWhy has not reviewed it. No vote followed.

Explainers

Documents

The township's own records on this issue. Each links to the official copy.

Meetings

  • Township Committee Regular Meeting

    The Township Committee adopted the 2026 municipal budget 5–0 after a public hearing with one speaker, and adopted Ordinances 26-15 (cap bank) and 26-16 (sewer easement at 15 Mountain View Road), 5–0 each. It introduced the data-center prohibition 4–1, with Committeeman McCarey opposed, and asked the County Clerk to put the Hofheimer House question on the November 3 ballot, 5–0.

  • Township Committee Regular Meeting

    The Township Committee adopted Ordinances 26-01, 26-02 and 26-03 5–0, approved the Green Acres application for Dealaman Nature Trail and Pond 5–0, and introduced eight ordinances 5–0, including the Mount Bethel appropriation, a Valley View Road bond and six affordable-housing measures. It adopted fifteen consent resolutions, with one abstention, and a temporary office lease 5–0.

  • Township of Warren Reorganization Meeting

    Daniel J. McCarey was sworn in, Shaun Fine was elected Mayor and Vanessa Kian Deputy Mayor, each 5–0. The Committee adopted its 2026 rules of order and resolutions 2026-002 through 2026-045, 5–0, covering appointments, the temporary budget and professional contracts. It tabled the bond counsel award to January 22. McCarey announced a forensic audit of all PILOT programs.

Sources for this overview

  1. Township Committee minutes, January 6, 2026 (announcement)
  2. Resolution 2026-085, award of forensic auditing services to Holman Frenia Allison, PC
  3. Township Committee minutes, February 19, 2026 (roll call)
  4. Township Committee minutes, May 14, 2026 (presentation)
  5. 2026 Municipal Data Sheet, Sheet 10 (PILOT revenue lines)
  6. 2025 annual financial statement (long-term tax exemption billing)
  7. Resolution 2022-191, PILOT revenue sharing with the Board of Education
  8. Resolution 2019-127, Warren LIHTC PILOT
All issues The full timeline