FAC Explorer

Audit 28212

FY End
2022-12-31
Total Expended
$6.32M
Findings
4
Programs
2
Organization: Simpson Midtown INC (PA)
Year: 2022 Accepted: 2023-06-01
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20319 2022-002 Significant Deficiency - E
20320 2022-002 Significant Deficiency - E
596761 2022-002 Significant Deficiency - E
596762 2022-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $600,000 - 0
14.157 Supportive Housing for the Elderly $306,303 Yes 1

Contacts

Name Title Type
XTSSYNLTFH75 Ken Franiak Auditee
2152063573 Patrick Heavens Auditor
No contacts on file

Notes to SEFA

Title: Loan Programs Accounting Policies: 1.Basis of Presentation and Relationship to Basic Financial StatementsThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Simpson Mid-Town, Inc. (the Project) under programs of the federal government for the year ended December 31, 2022. The information in the 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). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: Indirect CostsThe Project has not elected to use the 10% de-minimis indirect cost rate as allowed under the Uniform Guidance. The Project has outstanding loan balances of $6,010,300 at December 31, 2022 with continuing compliance requirements.

Finding Details

Finding 2022-002
Finding 2022-002: Required Support for Annual Recertifications - Significant Deficiency Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: January 1, 2022 to December 31, 2022 Pass-Through Entity: Not applicable Criteria: The Project shall maintain adequate support in the tenant files to support annual recertification amounts and determined tenant and Housing Assistance payment amounts determined from annual recertifications. Questioned Cost: None reported. Condition/Context: There was one tenant file where the tenant assistance payment was negative ($158) for the months of January and February of 2022, and management was unable to provide sufficient explanation and support for why the amount was negative. The sample included four tenant files, the entire population was subject to testing. Effect: One tenant recertification showed a negative tenant assistance monthly payment. Cause: Lack of management oversight due to turnover of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done accurately and documentation is maintained for any unusual amounts. Views of Responsible Officials and Planned Corrective Actions: Management will ensure proper training is given to staff responsible for annual recertifications. Management will ensure monthly reconciliation of recertification is reviewed timely and all supporting documentation of the reconciliation is kept in the resident tenant files.
Finding 2022-002
Finding 2022-002: Required Support for Annual Recertifications - Significant Deficiency Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: January 1, 2022 to December 31, 2022 Pass-Through Entity: Not applicable Criteria: The Project shall maintain adequate support in the tenant files to support annual recertification amounts and determined tenant and Housing Assistance payment amounts determined from annual recertifications. Questioned Cost: None reported. Condition/Context: There was one tenant file where the tenant assistance payment was negative ($158) for the months of January and February of 2022, and management was unable to provide sufficient explanation and support for why the amount was negative. The sample included four tenant files, the entire population was subject to testing. Effect: One tenant recertification showed a negative tenant assistance monthly payment. Cause: Lack of management oversight due to turnover of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done accurately and documentation is maintained for any unusual amounts. Views of Responsible Officials and Planned Corrective Actions: Management will ensure proper training is given to staff responsible for annual recertifications. Management will ensure monthly reconciliation of recertification is reviewed timely and all supporting documentation of the reconciliation is kept in the resident tenant files.
Finding 2022-002
Finding 2022-002: Required Support for Annual Recertifications - Significant Deficiency Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: January 1, 2022 to December 31, 2022 Pass-Through Entity: Not applicable Criteria: The Project shall maintain adequate support in the tenant files to support annual recertification amounts and determined tenant and Housing Assistance payment amounts determined from annual recertifications. Questioned Cost: None reported. Condition/Context: There was one tenant file where the tenant assistance payment was negative ($158) for the months of January and February of 2022, and management was unable to provide sufficient explanation and support for why the amount was negative. The sample included four tenant files, the entire population was subject to testing. Effect: One tenant recertification showed a negative tenant assistance monthly payment. Cause: Lack of management oversight due to turnover of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done accurately and documentation is maintained for any unusual amounts. Views of Responsible Officials and Planned Corrective Actions: Management will ensure proper training is given to staff responsible for annual recertifications. Management will ensure monthly reconciliation of recertification is reviewed timely and all supporting documentation of the reconciliation is kept in the resident tenant files.
Finding 2022-002
Finding 2022-002: Required Support for Annual Recertifications - Significant Deficiency Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: January 1, 2022 to December 31, 2022 Pass-Through Entity: Not applicable Criteria: The Project shall maintain adequate support in the tenant files to support annual recertification amounts and determined tenant and Housing Assistance payment amounts determined from annual recertifications. Questioned Cost: None reported. Condition/Context: There was one tenant file where the tenant assistance payment was negative ($158) for the months of January and February of 2022, and management was unable to provide sufficient explanation and support for why the amount was negative. The sample included four tenant files, the entire population was subject to testing. Effect: One tenant recertification showed a negative tenant assistance monthly payment. Cause: Lack of management oversight due to turnover of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done accurately and documentation is maintained for any unusual amounts. Views of Responsible Officials and Planned Corrective Actions: Management will ensure proper training is given to staff responsible for annual recertifications. Management will ensure monthly reconciliation of recertification is reviewed timely and all supporting documentation of the reconciliation is kept in the resident tenant files.