FAC Explorer

Audit 38265

FY End
2022-09-30
Total Expended
$2.21M
Findings
4
Programs
2
Organization: Ryder Assisted Care Iii, Inc. (PR)
Year: 2022 Accepted: 2023-07-27
Auditor: Fv & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41493 2022-001 - Yes C
41494 2022-002 - Yes N
617935 2022-001 - Yes C
617936 2022-002 - 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 $188,969 Yes 2

Contacts

Name Title Type
J5R2CUG63PS8 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 Ryder Assisted Care III, Inc. and is presented in 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, Audits 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$ 250,140Deduct: depreciation expense(61,703)Add: capital advance under Section 8112,020,000Add: difference between Section 8 Housing Assistance payments and total expenses excluding depreciation 532Total expenditures per Schedule of Expenditures of Federal Financial Assistance Awards$ 2,208,969 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) - Balances outstanding at the end of the audit period were 2020000.
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 Ryder Assisted Care III, Inc. and is presented in 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, Audits 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$ 250,140Deduct: depreciation expense(61,703)Add: capital advance under Section 8112,020,000Add: difference between Section 8 Housing Assistance payments and total expenses excluding depreciation 532Total expenditures per Schedule of Expenditures of Federal Financial Assistance Awards$ 2,208,969 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) - Balances outstanding at the end of the audit period were 2020000.

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 1 of 25 disbursement tested we noted that the check was issued 30 days after the date of the invoice. Context In order to ascertain whether the Project complied with the cash management compliance requirement we selected 25 disbursements and verified the time elapsing between the invoice and the check and noted that for 1 of 25 disbursements the time exceeded 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 2022-002
Finding Number: 2022-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The residual receipt was deposited over 60 days following the end of the fiscal year. Context 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. Criteria 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. 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. Consequently, when the analysis of the residual receipt was performed, the 60 days had already passed. 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.
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 1 of 25 disbursement tested we noted that the check was issued 30 days after the date of the invoice. Context In order to ascertain whether the Project complied with the cash management compliance requirement we selected 25 disbursements and verified the time elapsing between the invoice and the check and noted that for 1 of 25 disbursements the time exceeded 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 2022-002
Finding Number: 2022-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The residual receipt was deposited over 60 days following the end of the fiscal year. Context 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. Criteria 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. 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. Consequently, when the analysis of the residual receipt was performed, the 60 days had already passed. 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.