Notes to SEFA
Title: Note 3 - U.S. Department of Housing and Urban Development loan program
Accounting Policies: Note 1 - Basis of presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Herbert Brooks Housing Development Fund Company, Inc., HUD Project No. 012-EH-699 NY 36-S891-009, under programs of the federal government for the year ended December 31, 2023. The information in the Schedule is presented in accordance with the requirements of Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Note 2 - Summary of significant accounting policies
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards; wherein certain types of expenditures are not allowed. Assistance Listing numbers (“AL No.”) are provided when available.
De Minimis Rate Used: N
Rate Explanation: Functional allocation of expenses
The costs of providing programs and other activities are summarized on a functional basis in Note 11. Management and general expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Company. Accordingly, certain costs have been allocated among program services and administrative and support services benefited. Such allocations are determined by management on an equitable basis. 100% of management fees and audit expenses are allocated to management and general expense with the remaining expenses allocated to program services expense. The Company had no fundraising expense for the year ended December 31, 2023.
Herbert Brooks Housing Development Fund Company, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Herbert Brooks Housing Development Fund Company, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of: AL Number: 14.157; Program Name: Section 202 direct loan; Outstanding Balance at December 31, 2023: 7,838,700.