RIORDAN SCHOOL HOUSING DEVELOPMENT FUND COMPANY, INC.Non-Profit

Finding No. 2024-001: Current Year Reporting Package and Data Collection Not Filed Timely a. The Riordan School Housing Development Fund Company, Inc. March 31, 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 March 31, 2025 and March 31, 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 will be 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: Riordan School Housing Development Fund Company, Inc. 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 Riordan School Housing Development Fund Company, Inc. March 31, 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 March 31, 2025 and March 31, 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 will be 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: Riordan School 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 Riordan School 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 March 31, 2023 and March 31, 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 342 days 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 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: Bessie Riordan agrees with the finding and the auditor’s recommendations have been adopted.

Finding No. 2021-001: Section 202 Supportive Housing for the Elderly (Capital Advance) ? CFDA No. 14.157 a. Statement of Condition: The reserve for replacement account was underfunded by $3,250 as of March 31, 2021. b. Criteria: The mortgagor must maintain a reserve fund for replacements and deposit an amount equal to $3,250 per month, per the HUD Regulatory Agreement. c. Effect of Condition: The reserve for replacement account balance could become insufficiently funded to enable the project to finance significant repairs and replacements. d. Cause of Condition: Bessie Riordan Senior Apartments lacked the adequate cash flow during the year to make the required deposit. e. Recommendation: Bessie Riordan Senior Apartments should fund the replacement reserve for the month missed for the year ended March 31, 2021 as soon as financially possible. f. Views of Responsible Officials and Planned Corrective Actions: Bessie Riordan Senior Apartments agrees with the finding and the auditor?s recommendations have been adopted.

Finding No. 2021-002: Section 202 Supportive Housing for the Elderly (Capital Advance) ? CFDA No. 14.157 a. Statement of Condition: The required deposit of surplus cash of $8,909 as of 3/31/20 to the residual receipts reserve account was not made within the required 60 days following the statement of financial position date. b. Criteria: Bessie Riordan Senior Apartments is required to calculate surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the project?s fiscal year-end. c. Effect of Condition: The project is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. d. Cause of Condition: The required deposit was made ten days late due to an oversight by the managing agent. e. Recommendation: Bessie Riordan Senior Apartments should deposit the required funds in the future into the residual receipts reserve account within the 60-day requirement. f. Views of Responsible Officials and Planned Corrective Actions: Bessie Riordan Senior Apartments agrees with the finding and the auditor?s recommendations have been adopted.