Riordan School Addition Housing Development Fund Company, Inc.Non-Profit

Finding No. 2024-001: Current Year Reporting Package and Data Collection Not Filed Timely a. Riordan School Addition 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: Bessie Riordan Addition 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. Riordan School Addition 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 39 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 August 8, 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: Bessie Riordan Addition Apartments 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. Riordan School Addition Housing Development Fund Company, Inc. September 30, 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 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: Riordan School Addition Housing Development Fund Company, Inc. 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 required deposit of surplus cash in the amount of $7,621 as of September 30, 2020 to the residual receipts reserve account was not made within the required 60 days following the balance sheet date. b. Criteria: Bessie Riordan Addition Apartments is required to determine 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 deposit was made one day late due to an oversight by the managing agent. e. Recommendation: Bessie Riordan Addition 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 Addition Apartments agrees with the finding and the auditor?s recommendations have been adopted.

Finding No. 2020-001: Section 202 Supportive Housing for the Elderly ? (Capital Advance), CFDA No. 14.157 a. Statement of Condition: The required deposit of surplus cash in the amount of $4,710 as of September 30, 2019 to the residual receipts reserve account was not made within the required 60 days following the balance sheet date. b. Criteria: Bessie Riordan Addition Apartments is required to complete HUD-93486 to determine 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 incompliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. d. Cause of Condition: The deposit was made forty-nine days late due to an oversight by the managing agent. e. Recommendation: Bessie Riordan Addition 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 Addition Apartments agrees with the finding and the auditor?s recommendations have been adopted.

a) Statement of Condition: The reserve for replacement account was underfunded by $40 at September 30, 2019. b) Criteria: Bessie Riordan Addition Apartments must maintain a reserve fund for replacements and deposit an amount equal to $1,240 per month, per regulatory agreement. c) Effect of Condition: The project is not in compliance with the regulatory agreement. d) Cause of Condition: Due to an oversight by the managing agent, the first deposit for the current year was made for the prior year?s required amount of $1,200 rather than the current year?s required amount of $1,240. e) Recommendation: Bessie Riordan Addition Apartments should deposit the $40 necessary funds as soon as possible to ensure that the replacement reserve is fully funded in accordance with the HUD Regulatory Agreement. f) Views of Responsible Officials and Planned Corrective Actions: Bessie Riordan Addition Apartments agrees with the finding and the auditor?s recommendations have been adopted.

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