FAC Explorer

Audit 331863

FY End
2024-06-30
Total Expended
$1.43M
Findings
2
Programs
1
Organization: Second Step, Inc. (MD)
Year: 2024 Accepted: 2024-12-11
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
513852 2024-001 - Yes M
1090294 2024-001 - Yes M

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $69,276 Yes 0

Contacts

Name Title Type
DTCYB2AW1ML6 Stanley Estremsky Auditee
3014934200 Stewart Grubman Auditor
No contacts on file

Notes to SEFA

Title: Loans Loans Guarantee Outstanding Balance Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the Cost principles contained in the Title 2 US Code of Federal Regulations Part 200, Uniform administrative Requirements Cost Principles and Audit Requirements for Federal Awards Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement The Schedule includes the federal award activity of Second Step, Inc (the Entity) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity it is not intended to and does not present the financial position changes in net assets deficit or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. Federal Award Listing Number 14.181 Supportive Housing for Persons with Disabilities Capital Advance Program 1363370
Title: Federal Loan Program Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the Cost principles contained in the Title 2 US Code of Federal Regulations Part 200, Uniform administrative Requirements Cost Principles and Audit Requirements for Federal Awards Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement The Schedule includes the federal award activity of Second Step, Inc (the Entity) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Entity it is not intended to and does not present the financial position changes in net assets deficit or cash flows of the Entity. De Minimis Rate Used: N Rate Explanation: The Entity is reimbursed for programmatic and administrative costs in accordance with rules set forth by the U.S. Department of Housing and Urban Development. The Entity received a US Department of Housing and Urban Development Capital Advance under Section 811 of the National Affordable Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Entity received no additional loans during the year.

Finding Details

Finding 2024-001
Security Deposit Funding Information on the Universe Population Size-Security deposit activity was reviewed throughout the audit period and at year-end Sample Size-Security deposit activity was reviewed throughout the audit period and at year-end Identification of Repeat Finding Reference Number- 2023-002 Criteria-The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial bank account Statement of Condition-Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity Cause-The reason the deposit was not made is due to management oversight due to a change in management personnel positions Effect or Potential Effect-The security deposit fund is underfunded by a total of $160 Auditor Non-Compliance code-M-Security Deposits Questioned Costs-There were no known questioned costs Reporting Views of Responsible Officials-Auditee agrees with this finding and will make the required deposits timely going forward FHA Contract Number- 000-HH005/CMI Context-The finding represents an instance of management oversight due to a change in management personnel positions Recommendations-We recommend that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations- The Entity agrees with the finding and has made an additional deposit to the security deposit account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences Response Indicator- Agree Completion Date- 8/19/2024 Response-Management agrees with the finding and has made a deposit to the security deposit account to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences Contact Person- Stanley Estremsky
Finding 2024-001
Security Deposit Funding Information on the Universe Population Size-Security deposit activity was reviewed throughout the audit period and at year-end Sample Size-Security deposit activity was reviewed throughout the audit period and at year-end Identification of Repeat Finding Reference Number- 2023-002 Criteria-The regulatory agreement requires that security deposits received from residential tenants are deposited separately in a federally insured financial bank account Statement of Condition-Security deposit balance maintained by the Entity in the bank account was below the amount of residential tenant deposits recorded by the Entity Cause-The reason the deposit was not made is due to management oversight due to a change in management personnel positions Effect or Potential Effect-The security deposit fund is underfunded by a total of $160 Auditor Non-Compliance code-M-Security Deposits Questioned Costs-There were no known questioned costs Reporting Views of Responsible Officials-Auditee agrees with this finding and will make the required deposits timely going forward FHA Contract Number- 000-HH005/CMI Context-The finding represents an instance of management oversight due to a change in management personnel positions Recommendations-We recommend that the Entity fund the bank account immediately to fund the shortfall and create a better system of controls to ensure no future occurrences Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations- The Entity agrees with the finding and has made an additional deposit to the security deposit account in order to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences Response Indicator- Agree Completion Date- 8/19/2024 Response-Management agrees with the finding and has made a deposit to the security deposit account to fund the shortfall prior to the issuance of the financial statements. They have established a system in order to ensure no further occurrences Contact Person- Stanley Estremsky