Audit 393847

FY End

2025-06-30

Total Expended

$6.83M

Findings

1

Programs

1

Organization: Alliance Apartments Housing Development Fund Co., Inc. (NY)

Year: 2025 Accepted: 2026-03-24

Auditor: CBIZ CPA'S

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1182452	2025-001	Material Weakness	Yes	A

ALN	Program	Spent	Major	Findings
14.157	SUPPORTIVE HOUSING FOR THE ELDERLY	$6.83M	Yes	1

Contacts

Name	Title	Type
WC5SL6NUWNW8	Mark Enselman	Auditee
2127802300	Matthew Estersohn	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Alliance Apartments Housing Development Fund Co., Inc. (the “Company”) under programs of the federal government for the year ended June 30, 2025. 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 Company, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Company.

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

The Company 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. Alliance Apartments Housing Development Fund Co., Inc. received no additional loans during the year. The balance of the loan outstanding at June 30, 2025 consists of the following: Outstanding Balance: $6,014,200 FALN: 14.157, Program Name: Secrtion 202 Capital Advances

The Company has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2025-001

Section III—Federal Award Findings and Questioned Costs Finding No. 2025-001 (Assistance Listing Number 14.157 – Section 202 – Supportive Housing for the Elderly) (Significant Deficiency) Criteria: Disbursements from the replacement reserve account must be approved by HUD and used for the approved purpose. Condition: For one of two disbursements made from the replacement reserve account during 2023, HUD approved a loan from the replacement reserve while other HUD receivables remained outstanding. As a condition, Alliance Apartment Housing Development Fund Co., Inc. was required to repay the loan once the receivables were collected. The receivables were collected from HUD in late June 2023, but the loan was not repaid. Questioned Costs: None, Cause: Management did not deposit the loan proceeds back into the replacement reserve after HUD receivables were collected. Effect: The replacement reserve was not replenished as intended by HUD. Identification as a Repeat Finding: Yes, recurring finding for current year. Recommendation: We recommend that management restore the replacement reserve to the correct balance and implement controls to ensure that HUD conditions on reserve disbursements are complied with. Views of Responsible Officials: We have requested HUD approval to delay reimbursement of the reserves pending receipt of Budget Based Rent increase. We anticipate that this will be approved. Current Status: This finding still exists in the current year.