FAC Explorer

Audit 35156

FY End
2022-09-30
Total Expended
$2.93M
Findings
2
Programs
2
Organization: Egida Ryder, Inc. (PR)
Year: 2022 Accepted: 2023-07-25
Auditor: Fv & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31523 2022-001 - Yes C
607965 2022-001 - Yes C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.52M Yes 0
14.195 Section 8 Housing Assistance Payments Program $404,563 Yes 1

Contacts

Name Title Type
VWFGPBCSACE8 Jose R Feliciano Auditee
7878520768 Juan L Fernandez Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of presentationThe accompanying Schedule of Expenditures of Federal Financial Assistance Awards includes the federal grant activity of Egida Ryder, Inc. 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. The reconciliation between total expenses per Statement of Activities with expenditures reported in the Schedule of Expenditures of Federal Financial Assistance Awards follows:Total expenses per Statement of Activities$ 492,900Deduct: depreciation expense(76,372)Add: capital advance under Section 202 2,522,500Deduct: difference between Section 8 Housing Assistance payments and total expenses excluding depreciation (25,724)Total expenditures per Schedule of Expenditures of Federal Financial Assistance Awards$ 2,927,063 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 2522500.
Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of presentationThe accompanying Schedule of Expenditures of Federal Financial Assistance Awards includes the federal grant activity of Egida Ryder, Inc. 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. The reconciliation between total expenses per Statement of Activities with expenditures reported in the Schedule of Expenditures of Federal Financial Assistance Awards follows:Total expenses per Statement of Activities$ 492,900Deduct: depreciation expense(76,372)Add: capital advance under Section 202 2,522,500Deduct: difference between Section 8 Housing Assistance payments and total expenses excluding depreciation (25,724)Total expenditures per Schedule of Expenditures of Federal Financial Assistance Awards$ 2,927,063 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 2522500.

Finding Details

Finding 2022-001
Finding Number: 2022-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 5 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 5 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 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. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding 2022-001
Finding Number: 2022-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 5 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 5 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 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. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.