R.J. Barrett Manor Housing Development Fund Co., Inc.Non-Profit

Finding No. 2024-001: Current Year Reporting Package and Data Collection Not Filed Timely a. The R.J. Barrett Manor Housing Development Fund Company, Inc. September 30, 2024 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending September 30, 2025 and September 30, 2026. This designation will require the auditor to audit at least 40% of the project's programs as Major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the Federal Audit Clearinghouse late due to management not monitoring CPA firm to enter data in data collection form as agreed upon resulting in a late filing. The form will be submitted as soon as possible. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: R.J. Barrett Manor Apartments agrees with the finding and the auditor’s recommendations have been adopted.

Finding No. 2024-002: Prior Year Reporting Package and Data Collection Not Filed Timely a. The R.J. Barrett Manor Housing Development Fund Company, Inc. September 30, 2023 reporting package and data collection form was not filed with the federal audit clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending September 30, 2024 and September 30, 2025. This designation will require the auditor to audit at least 40% of the project's programs as major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the federal audit clearinghouse 52 days late due to management not monitoring CPA firm to enter data collection form as agreed upon, resulting in a late filing. The form was submitted on August 21, 2024. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: R.J. Barrett Manor Housing Development Fund Company, Inc. agrees with the finding and the auditor’s recommendations have been adopted.

Finding No. 2023-001: Prior Year Reporting Package and Data Collection Not Filed Timely a. The R.J. Barrett Manor Housing Development Fund Company, Inc. March 31, 2022 reporting package and data collection form was not filed with the federal audit clearinghouse on time. b. Criteria: 2 CFR section 200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. c. Effect of condition: The effect is that the project would not be considered a "Low Risk Auditee" for at least the fiscal years ending September 30, 2023 and September 30, 2024. This designation will require the auditor to audit at least 40% of the project's programs as major programs until such time that the project may be considered a “Low Risk Auditee” again. d. Cause of condition: The reporting package and data collection form was submitted to the federal audit clearinghouse 161 days due to management not monitoring CPA firm to enter data collection form as agreed upon, resulting in a late filing. The form was submitted on December 8, 2023. e. Recommendation: We recommend that management implement procedures to ensure that reporting packages and data collection forms are filed timely in the future. f. Views of responsible officials and planned corrective actions: R.J. Barrett Manor Housing Development Fund Company, Inc. agrees with the finding and the auditor’s recommendations have been adopted.

Statement of Condition: Several items of noncompliance were noted during the testing of tenant files. Documentation of income verification was inconsistent with income listed on the HUD-50059 for one tenant. In addition, there were tenant signatures missing on the HUD-50059 forms for three of the five tenants tested. Criteria: Tenants must meet the eligibility requirements for their subsidized unit. Third-party verification of income must be included in the tenant files documenting annual income. Tenant files should also contain signed copies of HUD-50059 acknowledging agreement with the rent calculation. Effect of Condition: The cost of the assistance may be disallowed. Cause of Condition: Procedures are in place for documentation of verification of income before eligibility is determined and obtaining tenant signatures on HUD-50059 during the certification process. However, the income was inputted incorrectly and inconsistently with the documentation filed and the tenant signature was inadvertently missed by the manager. Recommendation: R. J. Barrett Manor Apartments should again verify the eligibility of the residents whose income was not properly calculated and documented and obtain signatures on the revised HUD-50059. Procedures for verifying income documents and building tenant files should be reviewed. Views of Responsible Officials and Planned Corrective Actions: R. J. Barrett Manor Apartments agrees with the finding and the auditor?s recommendations have been adopted.

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