FAC Explorer

Audit 318360

FY End
2023-12-31
Total Expended
$6.30M
Findings
2
Programs
2
Organization: Simpson Midtown INC (PA)
Year: 2023 Accepted: 2024-09-03
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485588 2023-002 Material Weakness Yes E
1062030 2023-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $5.70M Yes 1
14.239 Home Investment Partnerships Program $600,000 - 0

Contacts

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

Notes to SEFA

Title: Loan Programs Accounting Policies: The 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, 2023. 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: The 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, 2023 with continuing compliance requirements.

Finding Details

Finding 2023-002
Finding 2023-002: Required Support for Annual Recertifications - Material Weakness - Material Noncompliance 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, 2023 to December 31, 2023 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: During testing of eligibility for the year, three of the four recertifications selected were not completed timely. Our sample was not statistically valid. Effect: Failure to perform timely recertification of tenants may result in ineligible tenants receiving housing assistance payments. Housing assistance payments were suspended by the U.S. Department of Housing and Urban Development beginning October 2023 and through the end of the year. Housing assistance payments were received subsequently in July 2024. Cause: Lack of management oversight of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done timely and accurately, and proper documentation is maintained.   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 2023-002
Finding 2023-002: Required Support for Annual Recertifications - Material Weakness - Material Noncompliance 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, 2023 to December 31, 2023 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: During testing of eligibility for the year, three of the four recertifications selected were not completed timely. Our sample was not statistically valid. Effect: Failure to perform timely recertification of tenants may result in ineligible tenants receiving housing assistance payments. Housing assistance payments were suspended by the U.S. Department of Housing and Urban Development beginning October 2023 and through the end of the year. Housing assistance payments were received subsequently in July 2024. Cause: Lack of management oversight of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done timely and accurately, and proper documentation is maintained.   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.