FAC Explorer

Audit 319497

FY End
2023-09-30
Total Expended
$2.21M
Findings
4
Programs
2
Organization: Ryder Assisted Care Iii, Inc. (PR)
Year: 2023 Accepted: 2024-09-13
Auditor: Fernandez Valdivia & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496682 2023-001 - Yes C
496683 2023-002 - Yes N
1073124 2023-001 - Yes C
1073125 2023-002 - Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $2.02M Yes 0
14.195 Section 8 Housing Assistance Payments Program $194,718 Yes 2

Contacts

Name Title Type
J5R2CUG63PS8 Nelson Pacheco Auditee
7878520768 Juan L Fernandez Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect cost agreement The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Ryder Assisted Care II, Inc. (A Nonprofit Corporation), HUD Project No. 056-HD-010, and is presented in the basis of accounting required by the US Department of Housing and Urban Development. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audit of States, Local Governments, and Non-profit Organizations and with US Department of Housing and Urban Development requirements for Section 8. Therefore, some amounts presented in this schedule may differ from accounts presented in, or used in the basic financial statements, which are prepared in accordance to accounting principles of generally accepted in the United States of America.
Title: Summary of significant accounting policies Accounting Policies: The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect cost agreement The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Schedule not in agreement with other federal awards reporting Accounting Policies: The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect cost agreement The information included in the Schedule may not fully agree with other federal awards reports, submitted directly to federal grantor agencies because, among other reasons, the award report may (a) be prepared for a different fiscal period and (b) include cumulative data (from prior years) rather than data from the current year only.
Title: Assistance listing numbers Accounting Policies: The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect cost agreement The AL numbers included in this Schedule were determined based on the program name, review of pass-through grant contracts information and the Office of Management and Budget’s Catalog of Federal Domestic Assistance.
Title: Major federal program Accounting Policies: The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect cost agreement Major program is identified in the Summary of auditor results section of the Schedule of findings and questioned costs on page 33.
Title: Indirect costs Accounting Policies: The Schedule has been prepared using the accrual basis of accounting and Not-for-Profit Organizations Audit and Accounting Guide. It is drawn primarily from Organization’s internal accounting records and are following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: No indirect cost agreement To charge indirect costs to a federal award, the Project has not prepared or submitted an indirect cost proposal as permitted by CFR 200.414 of the Uniform Guidance, nor elected to use the 10% minimis indirect cost rate.

Finding Details

Finding 2023-001
Internal Control over Compliance For 1 of 25 disbursements tested we noted that the check was issued 30 days after the date of the vendors’ invoices. For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 1 of 25 disbursement the time exceed 30 days (it was 34 days), average the period as per client’s established procedures. The 2 CFR Section 215.22 – Payments, states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. s The cash turnover days is the measure of the difference between the invoice date and the date of the payment (check date). The difference considered reasonable as per client is an average of 30 days or less.
Finding 2023-002
Special Test and Provisions The residual receipt was deposited over 60 days following the end of the fiscal year. In order to ascertain whether the Project complied with the compliance requirement we examined the form “Computation of Surplus cash, distributions, and residual receipt” and determine if a residual receipt deposit is required. The deposit of this residual was made more than 60 days after the end of fiscal year. The 24 CFR Section 891.400 (e) states that any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Consequently, when the analysis of the residual receipt was performed, the 60 days had already passed. The Project may be subject to HUD findings and therefore, may be subject to penalties.
Finding 2023-001
Internal Control over Compliance For 1 of 25 disbursements tested we noted that the check was issued 30 days after the date of the vendors’ invoices. For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 1 of 25 disbursement the time exceed 30 days (it was 34 days), average the period as per client’s established procedures. The 2 CFR Section 215.22 – Payments, states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. s The cash turnover days is the measure of the difference between the invoice date and the date of the payment (check date). The difference considered reasonable as per client is an average of 30 days or less.
Finding 2023-002
Special Test and Provisions The residual receipt was deposited over 60 days following the end of the fiscal year. In order to ascertain whether the Project complied with the compliance requirement we examined the form “Computation of Surplus cash, distributions, and residual receipt” and determine if a residual receipt deposit is required. The deposit of this residual was made more than 60 days after the end of fiscal year. The 24 CFR Section 891.400 (e) states that any remaining project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Consequently, when the analysis of the residual receipt was performed, the 60 days had already passed. The Project may be subject to HUD findings and therefore, may be subject to penalties.