Audit 301527

FY End
2020-06-30
Total Expended
$1.03M
Findings
2
Programs
2
Year: 2020 Accepted: 2024-04-01
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
390794 2020-001 Significant Deficiency - L
967236 2020-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $40,000 - 0
14.181 Supportive Housing for Persons with Disabilities $19,114 Yes 0

Contacts

Name Title Type
LTK6EXDXYF35 Yuliya Garcia Auditee
5087785040 Karen Kent Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Brush Hill Development Corporation (the Corporation) under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The federal loan programs listed below are administered directly by the Corporation, and balances and transactions relating to these programs are included in the Corporation's basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding as of June 30, 2020 consists of: CFDA Number Program Name Outstanding June 30, 2020 14.181 Section 811 Supportive Housing for Persons with Disabilities 972,400 14.239 Home Investment Partnership Program 40,000

Finding Details

Section III - Federal Awards Findings and Questioned Costs SIGNIFICANT DEFICIENCIES Item #2020-1 – Real Estate Assessment Center (REAC) Report Filing Criteria: Per the HUD Regulatory Agreement, the Corporation is required to provide an annual audited financial statement submission through REAC within 90 days after the end of the fiscal year of the reporting period. Condition: The Corporation did not file the June 30, 2020 audited financial statements within 90 days of the end of the fiscal year. Cause: Management needed additional time to file due to a changes in audit firms as well as delays due to staffing complications as a result of the COVID-19 pandemic. Effect: The Corporation is not in compliance with HUD laws and regulations. Recommendation: We recommend that the Corporation implement internal control procedures to ensure audited financial statements are submitted timely and in accordance with HUD regulations. Views of Responsible Officials and Planned Corrective Actions: The Corporation has filed with REAC as of the date of the audit report. Delays in financial reporting were due to a change in the audit firm completing the annual audit for the Corporation as well as staffing constraints as a result of the COVID-19 pandemic. No material weaknesses reported.
Section III - Federal Awards Findings and Questioned Costs SIGNIFICANT DEFICIENCIES Item #2020-1 – Real Estate Assessment Center (REAC) Report Filing Criteria: Per the HUD Regulatory Agreement, the Corporation is required to provide an annual audited financial statement submission through REAC within 90 days after the end of the fiscal year of the reporting period. Condition: The Corporation did not file the June 30, 2020 audited financial statements within 90 days of the end of the fiscal year. Cause: Management needed additional time to file due to a changes in audit firms as well as delays due to staffing complications as a result of the COVID-19 pandemic. Effect: The Corporation is not in compliance with HUD laws and regulations. Recommendation: We recommend that the Corporation implement internal control procedures to ensure audited financial statements are submitted timely and in accordance with HUD regulations. Views of Responsible Officials and Planned Corrective Actions: The Corporation has filed with REAC as of the date of the audit report. Delays in financial reporting were due to a change in the audit firm completing the annual audit for the Corporation as well as staffing constraints as a result of the COVID-19 pandemic. No material weaknesses reported.