FAC Explorer

Audit 21573

FY End
2022-12-31
Total Expended
$1.00M
Findings
2
Programs
2
Organization: Simeanna Iii, Inc. (WI)
Year: 2022 Accepted: 2023-04-04
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21837 2022-002 Significant Deficiency - L
598279 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.155 Section 223(f) Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $800,003 Yes 1
14.195 U.s Department of Housing and Urban Development Section 8 Housing Assistance Payments Program $200,713 - 0

Contacts

Name Title Type
CMUNBQULUSM5 Theresa Bertram Auditee
9202355228 Dawn Yarrington Auditor
No contacts on file

Notes to SEFA

Title: NOTE PAYABLE BALANCE Accounting Policies: BASIS OF PRESENTATION: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Simeanna III, Inc. under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Simeanna III, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Simeanna III, Inc. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: Simeanna III, Inc. has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The balance of the note payable to HUD at December 31, 2022 and 2021 was $737,369 and $800,003, respectively.

Finding Details

Finding 2022-002
2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 207/223(f) HUD Insured Mortgage Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 075-EH008-WAH-L8 - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Simeanna III, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Simeanna III, Inc. did not have adequate internal controls designed to ensure replacement reserve deposits were updated based on the provisions of the regulatory agreement. Questioned Costs: None Context: During our testing, it was noted that Simeanna III, Inc. did not update the October through December 2022 replacement reserve deposits as prescribed in the regulatory agreement. Cause: Simeanna III, Inc. was unaware the bank did not update the October through December 2022 replacement reserve deposits. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure replacement reserve deposits are updated timely to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-002
2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 207/223(f) HUD Insured Mortgage Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 075-EH008-WAH-L8 - 2022 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Simeanna III, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Simeanna III, Inc. did not have adequate internal controls designed to ensure replacement reserve deposits were updated based on the provisions of the regulatory agreement. Questioned Costs: None Context: During our testing, it was noted that Simeanna III, Inc. did not update the October through December 2022 replacement reserve deposits as prescribed in the regulatory agreement. Cause: Simeanna III, Inc. was unaware the bank did not update the October through December 2022 replacement reserve deposits. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure replacement reserve deposits are updated timely to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.