EIN: 205382653
UEI: GQFLNEN6LWF8
Audited by: BDO USA, P.C.
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 31, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 1, 2026 (32 days from today).
What is a management decision? →FAC accepted this audit on April 2, 2025 — management decision was due October 2, 2025.
2024-001 – Special Tests and Provisions - Noncompliance Information on Federal Program: U.S. Department of Housing and Urban Development, Award Listing Numbers 14.181. Criteria: Part 4 of the May 2024 2 CFR Part 200, Appendix XI, Compliance Supplement, for Award Listing Number 14.181 requires, “Any surplus funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR section 891.400(e)).” Conditions: During our review of the Schedule of Computation of Surplus Cash, we noted that MRCS III had surplus cash of $15,926. We noted that these funds would be required to be deposited within a federally insured residual receipts reserve account within 60 days following the end of the fiscal year. MRCS III did not deposit surplus funds within 60 days following the end of the fiscal year. Questioned Costs: None identified.Cause: Funds were not deposited within 60 days, as this is the first time surplus funds were available to be deposited. Effect: Surplus funds were not deposited timely. Context: Since inception, MRCS III has included the due to affiliate account balance within its Schedule of Computation of Surplus Cash, resulting in a deficiency of cash. The due to affiliate balance only includes project expenses paid by NYSARC, Inc.—Nassau County Chapter, the managing agent of MRCS III, on behalf of MRCS III. In 2024, MRCS III received a notification from the U.S. Department of Housing and Urban Development (HUD) that due-to-affiliate balances shall not be included in the Computation of Surplus Cash/Cash (Deficiency) unless written approval has been received from HUD. As of the date of this report, no written approval has been received resulting in surplus cash. Recommendation: We recommend management implements a process to monitor their available cash balances to determine if there is a surplus cash balance at the fiscal year end date within one month of the fiscal year-end date to allow for timely deposits into a residual receipts account, as necessary.Views of Responsible Official and Planned Corrective Action: MRCS III agrees with the finding identified. MRCS III’s response to the finding is described in the accompanying management’s corrective action plan.
Show full finding ▾Hide full finding ▴2024-001 – Special Tests and Provisions - Noncompliance Information on Federal Program: U.S. Department of Housing and Urban Development, Award Listing Numbers 14.181. Criteria: Part 4 of the May 2024 2 CFR Part 200, Appendix XI, Compliance Supplement, for Award Listing Number 14.181 requires, “Any surplus funds in the project funds account (including earned interest) at the end of the fiscal year shall be deposited in a federally insured account within 60 days following the end of the fiscal year. Withdrawals from this account may be made only for project purposes and with the approval of HUD (24 CFR section 891.400(e)).” Conditions: During our review of the Schedule of Computation of Surplus Cash, we noted that MRCS III had surplus cash of $15,926. We noted that these funds would be required to be deposited within a federally insured residual receipts reserve account within 60 days following the end of the fiscal year. MRCS III did not deposit surplus funds within 60 days following the end of the fiscal year. Questioned Costs: None identified.Cause: Funds were not deposited within 60 days, as this is the first time surplus funds were available to be deposited. Effect: Surplus funds were not deposited timely. Context: Since inception, MRCS III has included the due to affiliate account balance within its Schedule of Computation of Surplus Cash, resulting in a deficiency of cash. The due to affiliate balance only includes project expenses paid by NYSARC, Inc.—Nassau County Chapter, the managing agent of MRCS III, on behalf of MRCS III. In 2024, MRCS III received a notification from the U.S. Department of Housing and Urban Development (HUD) that due-to-affiliate balances shall not be included in the Computation of Surplus Cash/Cash (Deficiency) unless written approval has been received from HUD. As of the date of this report, no written approval has been received resulting in surplus cash. Recommendation: We recommend management implements a process to monitor their available cash balances to determine if there is a surplus cash balance at the fiscal year end date within one month of the fiscal year-end date to allow for timely deposits into a residual receipts account, as necessary.Views of Responsible Official and Planned Corrective Action: MRCS III agrees with the finding identified. MRCS III’s response to the finding is described in the accompanying management’s corrective action plan.
Finding Number: 2024-001 Program: U.S. Department of Housing and Urban Development, Award Listing Number 14.181 Planned Corrective Action: Management will implement a process to monitor their available cash balances to determine if there is a surplus cash balance at the fiscal year-end date within one month of the fiscal year-end date to allow for timely deposits into a residual receipts account, as necessary. Person(s) Responsible: Sylvester Naraine, Chief Financial Officer Jerry Bhigroog, Director of Corporate Accounting Brian Wahl, Accounting Manager Expected Completion Date: June 30, 2025
FAC accepted this audit on April 10, 2024 — management decision was due October 10, 2024.
2023-001 – Special Tests and Provisions - Noncompliance Information on Federal Program: U.S. Department of Housing and Urban Development, Award Listing Numbers 14.181. Criteria: 24 CFR section 891.435(a) requires “At the time of the initial execution of the lease, the Owner (or Borrower, as applicable) will require each household (or family, as applicable) occupying an assisted unit or residential space in a group home to pay a security deposit in an amount equal to one month’s tenant rent or $50, whichever is greater. The household (or family) is expected to pay the security deposit from its own resources or other available public or private resources. The Owner (or Borrower) may collect the security deposit on an installment basis.” Conditions: During our review of the chart of accounts for MRCS III, we noted that a separate tenant security deposit account did not exist. Per discussion with management, tenant security deposits were never remitted by tenants to MRCS III. Questioned Costs: None identified. Cause: Security deposits were not requested from tenants by management. Effect: A tenant security deposit account has not been established. Context: At inception, MRCS III submitted for approval to HUD a request to waive the tenant security deposit requirement. Due to the length of time which has passed, MRCS III has been unable to locate within its records any approval or denial from HUD. As a result, MRCS III has not requested for tenants to remit a security deposit upon being admitted as a tenant. Recommendation: We recommend management implements a process to obtain tenant security deposits from all current tenants and to ensure proper procedures are in place to collect tenant security deposits from all new tenants at the time of initial lease and to refund deposits to tenants upon vacating their unit. Views of Responsible Official and Planned Corrective Action: MRCS III agrees with the finding identified. MRCS III’s response to the finding is described in the accompanying management’s corrective action plan.
Show full finding ▾Hide full finding ▴2023-001 – Special Tests and Provisions - Noncompliance Information on Federal Program: U.S. Department of Housing and Urban Development, Award Listing Numbers 14.181. Criteria: 24 CFR section 891.435(a) requires “At the time of the initial execution of the lease, the Owner (or Borrower, as applicable) will require each household (or family, as applicable) occupying an assisted unit or residential space in a group home to pay a security deposit in an amount equal to one month’s tenant rent or $50, whichever is greater. The household (or family) is expected to pay the security deposit from its own resources or other available public or private resources. The Owner (or Borrower) may collect the security deposit on an installment basis.” Conditions: During our review of the chart of accounts for MRCS III, we noted that a separate tenant security deposit account did not exist. Per discussion with management, tenant security deposits were never remitted by tenants to MRCS III. Questioned Costs: None identified. Cause: Security deposits were not requested from tenants by management. Effect: A tenant security deposit account has not been established. Context: At inception, MRCS III submitted for approval to HUD a request to waive the tenant security deposit requirement. Due to the length of time which has passed, MRCS III has been unable to locate within its records any approval or denial from HUD. As a result, MRCS III has not requested for tenants to remit a security deposit upon being admitted as a tenant. Recommendation: We recommend management implements a process to obtain tenant security deposits from all current tenants and to ensure proper procedures are in place to collect tenant security deposits from all new tenants at the time of initial lease and to refund deposits to tenants upon vacating their unit. Views of Responsible Official and Planned Corrective Action: MRCS III agrees with the finding identified. MRCS III’s response to the finding is described in the accompanying management’s corrective action plan.
Finding Number: 2023-001 Program: U.S. Department of Housing and Urban Development, Award Listing Number 14.181 Planned Corrective Action: Management will implement a process to obtain tenant security deposits from all current tenants and to ensure proper procedures are in place to collect tenant security deposits from all new tenants at the time of initial lease and to refund deposits to tenants upon vacating their unit. Person(s) Responsible: Willard Derr, Chief Financial Officer Sylvester Narraine, Senior Director of Finance Brian Wahl, Accounting Supervisor Expected Completion Date: June 30, 2024
FAC accepted this audit on March 29, 2023 — management decision was due September 29, 2023.
FAC accepted this audit on March 28, 2022 — management decision was due September 28, 2022.
FAC accepted this audit on March 29, 2021 — management decision was due September 29, 2021.
FAC accepted this audit on March 22, 2020 — management decision was due September 22, 2020.
FAC accepted this audit on March 28, 2019 — management decision was due September 28, 2019.
FAC accepted this audit on April 16, 2018 — management decision was due October 16, 2018.
FAC accepted this audit on April 24, 2017 — management decision was due October 24, 2017.
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