FAC Explorer

Audit 405627

FY End
2025-09-30
Total Expended
$1.49M
Findings
1
Programs
3
Organization: Brocton Housing Development Fund Company, Inc. Herbert Star Apartments #014-Eh092-Np (NY)
Year: 2025 Accepted: 2026-06-30
Auditor: WITHUMSMITH+BROWN PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1221280 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.27M Yes 1
14.182 SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION $189,718 Yes 0
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $23,666 Yes 0

Contacts

Name Title Type
J2JPH8VT33B5 Aaron Hejmowski Auditee
7168847791 Adam Stanard Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Brocton Housing Development Fund Co., Inc. under programs of the federal government for the year ended September 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 Brocton Housing Development Fund Company, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Brocton Housing Development Fund Company, Inc.
SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 1,229,304.

Finding Details

Finding 2025-001
Finding 2025-001: Special Tests and Provisions - Project Funds. Criteria: In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. Condition and context: During our testing, we noted that the project fund account used by the Company was not an interest-bearing account. Cause: Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Company's management. Effect or potential effect: Project funds would not earn interest in accordance with HUD requirements. Questioned costs: None. Recommendation: We recommend that the Company utilize an interest-bearing account for project funds in accordance with HUD requirements. Views of responsible officials: Management concurs with the audit finding. Although the non-profit Company does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management inquired with the bank and deemed the cost outweighs the benefit due to the fees charged for an interest bearing account exceeding the interest that would be earned.