Audit 301542

FY End
2022-06-30
Total Expended
$1.04M
Findings
2
Programs
2
Year: 2022 Accepted: 2024-04-01
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
390823 2022-001 Significant Deficiency Yes L
967265 2022-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $40,000 - 0
14.181 Supportive Housing for Persons with Disabilities $26,007 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 NonProfit 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. De Minimis Rate Used: Y Rate Explanation: Brush Hill Development Corporation has elected to use the 10-percent de minimis indirect cost rate 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, HUD Project No. : Brush Hill Development Corporation, under programs of the federal government for the year ended June 30, 2022. 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 Brush Hill Development Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Brush Hill Development 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 NonProfit 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. De Minimis Rate Used: Y Rate Explanation: Brush Hill Development Corporation has elected to use the 10-percent de minimis indirect cost rate 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 NonProfit 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.
Title: Indirect cost rate 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 NonProfit 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. De Minimis Rate Used: Y Rate Explanation: Brush Hill Development Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Brush Hill Development Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S. Department of Housing and Urban Development loan program 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 NonProfit 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. De Minimis Rate Used: Y Rate Explanation: Brush Hill Development Corporation has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan program listed below is administered by the U.S. Department of Housing and Urban Development, and balances and transactions relating to this program is included in Brush Hill Development 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 the loan outstanding at June 30, 2022 consists of: Assistance Listing Number Program Name Outstanding Balance at June 30, 2022 14.181 Section 811 Supportive Housing for Persons with Disabilities $972,400 14.239 Home Investment Partnership Program $40,000

Finding Details

Section III - Findings and Questioned Costs - Major Federal Program Audit SIGNIFICANT DEFICIENCIES Item #2022-1 - 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, 2022 audited financial statements within 90 days of the end of the fiscal year. Cause: Management needed additional time to file due to a delays from audit firm as well as delays due to staffing changes at the management agent. Effect: The Corporation is not in compliance with HUD laws and regulations. Recommendation: We recommend that the Corporation implement necessary policies 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 delays from audit firm as well as delays due to staffing changes at the management agent. No material weaknesses reported
Section III - Findings and Questioned Costs - Major Federal Program Audit SIGNIFICANT DEFICIENCIES Item #2022-1 - 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, 2022 audited financial statements within 90 days of the end of the fiscal year. Cause: Management needed additional time to file due to a delays from audit firm as well as delays due to staffing changes at the management agent. Effect: The Corporation is not in compliance with HUD laws and regulations. Recommendation: We recommend that the Corporation implement necessary policies 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 delays from audit firm as well as delays due to staffing changes at the management agent. No material weaknesses reported