FAC Explorer

Audit 40501

FY End
2022-06-30
Total Expended
$1.10M
Findings
2
Programs
1
Organization: Simcha, Inc. (OH)
Year: 2022 Accepted: 2022-11-10
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46063 2022-001 Significant Deficiency - N
622505 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $1.02M Yes 1

Contacts

Name Title Type
GJL1BVMKRLN7 William Bode Auditee
2165046462 David Andrews Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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 in reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - The Corporation has received a U.S. Department of Housing and Urban Development capital advance under Section 811 of the National Housing Act. The capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Corporation received no additional loans during the year. Balances outstanding at the end of the audit period were $1,024,800.
Title: Basis of Presentation 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 in reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Simcha, Inc. under programs of the federal government for the year ended June 30, 2022. The information in this 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). Because the Schedule presents only a selected portion of the operations of Simcha, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of Simcha, Inc.

Finding Details

Finding 2022-001
Finding No. 2022-001 ? Security Deposits Federal Agency: Housing and Urban Development (HUD) Federal Program: Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance Program and Project Rental Assistance: ALN 14.181 Criteria: Section 2-12 ?Cash Management Controls? of the HUD Financial Operations and Accounting Procedures Handbook (4370.2) requires that the balance of any funds collected as security deposits must not at any time be less than the aggregate of all outstanding obligations under the account for security deposits. Condition: At June 30, 2022 the Corporation had a deficiency in its security deposit account of $127. Questioned Costs: None. Effect: The Corporation was not in compliance with the requirements under the program. Cause: The Corporation?s internal controls did not prevent the security deposit account from being less than required under the program. Recommendation: We recommend the Corporation review its internal controls and implement changes necessary to minimize the risk of this occurring in the future. View of Responsible Officials and Planned Corrective Actions: Management accepts the identified finding.
Finding 2022-001
Finding No. 2022-001 ? Security Deposits Federal Agency: Housing and Urban Development (HUD) Federal Program: Supportive Housing for Persons with Disabilities ? Section 811 Capital Advance Program and Project Rental Assistance: ALN 14.181 Criteria: Section 2-12 ?Cash Management Controls? of the HUD Financial Operations and Accounting Procedures Handbook (4370.2) requires that the balance of any funds collected as security deposits must not at any time be less than the aggregate of all outstanding obligations under the account for security deposits. Condition: At June 30, 2022 the Corporation had a deficiency in its security deposit account of $127. Questioned Costs: None. Effect: The Corporation was not in compliance with the requirements under the program. Cause: The Corporation?s internal controls did not prevent the security deposit account from being less than required under the program. Recommendation: We recommend the Corporation review its internal controls and implement changes necessary to minimize the risk of this occurring in the future. View of Responsible Officials and Planned Corrective Actions: Management accepts the identified finding.