FAC Explorer

Audit 371456

FY End
2024-09-30
Total Expended
$3.83M
Findings
2
Programs
2
Organization: Ryder Village Ii, Inc. (PR)
Year: 2024 Accepted: 2025-10-29
Auditor: FERNANDEZ VALDIVIA & COMPANY

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1161577 2024-001 Material Weakness Yes C
1161578 2024-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $3.52M Yes 0
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $313,155 Yes 2

Contacts

Name Title Type
KQ4KQ2QKF3S8 Nelson Pacheco Auditee
7878520768 Derek Velazquez Auditor
No contacts on file

Notes to SEFA

Note 1 - Basis of presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Ryder Village II, Inc. (A Nonprofit Corporation), HUD Project No. 056-EH-337, 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 Awards follows: Total expenses per Statement of Activities $ 477,844 Deduct: depreciation expense (104,610) Add: capital advance under Section 202 3,151,000 Deduct: difference between Section 8 Housing Assistance payments and total expenses excluding depreciation (60,079) Total expenditures per Schedule of Expenditures of Federal Financial Assistance Awards $ 3,828,155
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.
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.
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.
Major program is identified in the Summary of auditor results section of the Schedule of findings and questioned costs on page 33.
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 2024-001
Internal Control over Compliance For 3 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 3 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 2024-002
Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan on page 37.