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HomeMy WebLinkAboutRAP21-01 McMahan and Associates HUD REACMcMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 M & A January 22, 2021 Board of Directors Riverview Apartments Preservation LP c/o Eagle County P.O. Box 850 Eagle, Colorado 81631-0850 Attention: Jill Klosterman, Finance Director Dear Board members: We are pleased to confirm our understanding of the services we are to provide for Riverview Apartments Preservation LP (the “Corporation”). We will apply the agreed-upon procedure which the United States Department of Housing and Urban Development Real Estate Assessment Center (“HUD REAC”) has specified, listed below, to the electronic submission and related hard copy documents listed below of the Corporation as of and for the year ending December 31, 2020. This engagement is solely to assist the Corporation and HUD REAC in determining whether electronic submission of certain information agrees with the related hard copy documents. Our engagement to apply the agreed-upon procedure will be performed in accordance with attestation standards established by the American Institute of Certified Public Accountants and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States. The sufficiency of the procedure is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedure described below either for the purpose for which this report has been requested or for any other purpose. If, for any reason, we are unable to complete the procedure, we will describe any restrictions on the performance of the procedure in our report, or we will not issue a report as a result of this engagement. We will submit a report listing the procedure performed and our findings. This report is intended solely for the use of the Corporation and HUD REAC, and is not intended to be and should not be used by anyone other than these specified parties. Our report will include a statement indicating that we have not performed any additional auditing procedures after the date of our reports on the audited financial statements and supplemental information, including a statement indicating that had we performed additional procedures, other matters might have come to our attention that would have been reported to you. Further, we take no responsibility for the security of the information transmitted electronically to HUD REAC. You are responsible for establishing and maintaining effective internal controls, including internal controls over compliance, and for evaluating and monitoring ongoing activities to help ensure that appropriate goals and objectives are met and that there is reasonable assurance that government programs are administered in compliance with compliance requirements. You are also responsible for the presentation of the electronic submission and related hard copy documents of the Corporation listed below as of and for the year ended December 31, 2020, in accordance with the agreed-upon procedure which HUD REAC has specified, listed below; and for selecting the criteria and determining that such criteria are appropriate for your purposes. DocuSign Envelope ID: E2C253BE-5F80-45B3-94B9-CCF420DEE659 RAP21-01 January 22, 2021 Board of Directors Riverview Apartments Preservation LP Page 2 of 3 You are also responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, or experience to oversee any non-attest services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. You agree to retain a copy of the HUD-REAC reporting package in its entirety. Our procedure will be as follows: 1)Compare the electronic submission of the items listed in the “UFRS Rule Information” column with the corresponding printed documents listed in the “Hard Copy Documents” column as shown in the chart below. UFRS Rule Information Hard Copy Document(s) Balance Sheet, Revenue and Expense and Cash Flow Data (account numbers 1120 to 7100T and the S1200 series) Supplemental Schedules with Financial Statement Data Surplus Cash (S1300 series of accounts) Computation of Surplus Cash, Distributions and Residual Receipts (Annual) Footnotes (S3100 series of accounts) Notes to the Audited Financial Statements Type of Opinion on the Financial Statements and Auditor Reports (S3400, S3500 and S3600 series of accounts) Auditor’s Reports on the Financial Statements, Compliance, and Internal Control Type of Opinion on Supplemental Data (account S3400-100) Auditor’s Report on Supplemental Data Audit Findings Narrative (S3800 series of accounts) Schedule of Findings and Questioned Costs General Information (S3300, S3700 and S3800 series of accounts) Schedule of Findings and Questioned Costs and OMB Data Collection Form The attest documentation for this engagement is the property of McMahan and Associates, L.L.C. and constitutes confidential information. However, we may be requested to make certain attest documentation available to the Secretary of Housing and Urban Development, the HUD Inspector General, and the Government Accountability Office or their representatives, pursuant to authority given to them by law or regulation. We will notify you of any such request. If requested, access to such attest documentation will be provided under the supervision of McMahan and Associates, L.L.C. personnel. Furthermore, upon request, we may provide copies of selected attest documentation to HUD or the Government Accountability Office representatives. HUD and the Government Accountability Office may decide to distribute the copies or information contained therein to others, including other governmental agencies. Michael Jenkins is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Additional firm personnel will be assigned to the engagement as considered necessary. At the conclusion of our engagement, we will require a representation letter from management that, among other things, will confirm management’s responsibility for the presentation of the electronic submission and the financial statements and supplemental information included in the HUD-REAC reporting package. Our fees for these services will be based on the actual time spent at our standard hourly rates, plus travel and other out-of-pocket costs such as report production, word processing, postage, etc. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. However, we estimate that our fee for this service for 2020 will not exceed $625, which includes all out-of-pocket expenses. The estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. If significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. DocuSign Envelope ID: E2C253BE-5F80-45B3-94B9-CCF420DEE659 January 22, 2021 Board of Directors Riverview Apartments Preservation LP Page 3 of 3 Our invoices for these fees are payable upon presentation. In accordance with our firm policies, work may be suspended if your account becomes overdue and will not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. We appreciate the opportunity to be of service to Riverview Apartments Preservation LP and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy, and return it to us. If the need for additional procedures arises, our agreement with you will need to be revised. It is customary for us to enumerate these revisions in an addendum to this letter. If additional specified users of the report are added, we will require that they acknowledge in writing their responsibility for the sufficiency of the procedure. Very truly yours, McMAHAN and ASSOCIATES, L.L.C. This letter correctly sets forth the understanding of Riverview Apartments Preservation LP with respect to the services to be performed by McMahan and Associates, L.L.C. RIVERVIEW APARTMENTS PRESERVATION LP BY: Signature: _________________________________ Title: _________________________________ Date: _________________________________ DocuSign Envelope ID: E2C253BE-5F80-45B3-94B9-CCF420DEE659 Executive Director 2/2/2021