Audit 365662

FY End

2024-12-31

Total Expended

$9.28M

Findings

4

Programs

1

Organization: Herbert Brooks Housing Development Fund Company, INC (NY)

Year: 2024 Accepted: 2025-09-05

Auditor: Novogradac & Company LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
575655	2024-001	Material Weakness	-	B
575656	2024-001	Material Weakness	-	B
1152097	2024-001	Material Weakness	-	B
1152098	2024-001	Material Weakness	-	B

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$1.44M	Yes	1

Contacts

Name	Title	Type
SBB8GNEVUC89	Derrick Lovett	Auditee
3472262474	Frank Buss II	Auditor
No contacts on file

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, 2024. 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: 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, 2024. 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, 2024 consists of: AL Number Program Name Outstanding Balance at December 31, 2024 14.157 Section 202 direct loan $ 7,838,700

Finding Details

Finding 2024-001

Statement of Condition Residual receipts were not properly deposited into an account in accordance with HUD requirements. Criteria Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year. Questioned Costs $116,553 Effect or potential effect The Company is in non-compliance with specific requirements of a major federal program. Cause Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account. Recommendation We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements. Reporting views of responsible officials Auditee agrees with the auditor. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.

Finding 2024-001

Statement of Condition Residual receipts were not properly deposited into an account in accordance with HUD requirements. Criteria Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year. Questioned Costs $116,553 Effect or potential effect The Company is in non-compliance with specific requirements of a major federal program. Cause Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account. Recommendation We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements. Reporting views of responsible officials Auditee agrees with the auditor. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.

Finding 2024-001

Statement of Condition Residual receipts were not properly deposited into an account in accordance with HUD requirements. Criteria Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year. Questioned Costs $116,553 Effect or potential effect The Company is in non-compliance with specific requirements of a major federal program. Cause Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account. Recommendation We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements. Reporting views of responsible officials Auditee agrees with the auditor. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.

Finding 2024-001

Statement of Condition Residual receipts were not properly deposited into an account in accordance with HUD requirements. Criteria Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year. Questioned Costs $116,553 Effect or potential effect The Company is in non-compliance with specific requirements of a major federal program. Cause Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account. Recommendation We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements. Reporting views of responsible officials Auditee agrees with the auditor. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.