FAC Explorer

Audit 32079

FY End
2022-12-31
Total Expended
$5.28M
Findings
2
Programs
2
Organization: St Matthew Housing Development INC T/a St Matthew Manor (PA)
Year: 2022 Accepted: 2023-04-30
Auditor: Capaldi Reynolds & Pelosi PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34291 2022-001 Significant Deficiency - N
610733 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $4.57M Yes 1
14.871 Section 8 Housing Choice Vouchers $707,272 - 0

Contacts

Name Title Type
FCVMXQ5JM3L9 Derek Pew Auditee
6096468861 Jeffrey Wilson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of St. Matthew Housing Development, Inc. T/A St. Matthew Manor (hereafter St. Matthew Manor), and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 St. Matthew Manor, it is not intended to and does not present the financial position, changes in net assets, or cash flows of St. Matthew Manor. De Minimis Rate Used: Y Rate Explanation: 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. St. Matthew Manor has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. MORTGAGE INSURANCE_RENTAL HOUSING (14.134) - Balances outstanding at the end of the audit period were 4477836.

Finding Details

Finding 2022-001
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 US Department of Housing and Urban Development Section 207/223(f) Mortgage Insurance Program Principal, CFDA 14.134. Criteria: The Regulatory Agreement with HUD states that Surplus Cash is to be deposited into the Residual Receipts account within 90 days of the fiscal year end. Condition: The required deposit of $2,234, per the December 31, 2021 Computation of Surplus Cash was not deposited into the Residual Receipts account in a timely manner. Cause: Managing Agent was unaware that compliance requirement was not being met as the intention was to offset HAP vouchers instead of making the deposit. Effect: Noncompliance with any part of the regulatory agreement may cause HUD to terminate assistance to the property. Perspective Information: This finding represents an isolated incident of management oversight of compliance requirements. Recommendation: We recommend that management implements a checklist of all compliance requirements, with applicable deadlines, that would be reviewed by appropriate individuals regularly, to ensure requirements are being met in a timely manner. Views of Responsible Officials: Management agrees with the finding and the auditor's recommendation. The required deposit was made on April 7, 2023. No further action required.
Finding 2022-001
FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 US Department of Housing and Urban Development Section 207/223(f) Mortgage Insurance Program Principal, CFDA 14.134. Criteria: The Regulatory Agreement with HUD states that Surplus Cash is to be deposited into the Residual Receipts account within 90 days of the fiscal year end. Condition: The required deposit of $2,234, per the December 31, 2021 Computation of Surplus Cash was not deposited into the Residual Receipts account in a timely manner. Cause: Managing Agent was unaware that compliance requirement was not being met as the intention was to offset HAP vouchers instead of making the deposit. Effect: Noncompliance with any part of the regulatory agreement may cause HUD to terminate assistance to the property. Perspective Information: This finding represents an isolated incident of management oversight of compliance requirements. Recommendation: We recommend that management implements a checklist of all compliance requirements, with applicable deadlines, that would be reviewed by appropriate individuals regularly, to ensure requirements are being met in a timely manner. Views of Responsible Officials: Management agrees with the finding and the auditor's recommendation. The required deposit was made on April 7, 2023. No further action required.