HomeMy WebLinkAboutRAP23-01 McMahan and AssociatesMcMahan 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 Matthew D. Miller, CPA Frisco: (970) 668-3481 M & A January 11, 2023 Board of Directors Riverview Apartments Preservation LP c/o Eagle County P.O. Box 850 Eagle, Colorado 81631-0850 Dear Board members: This letter sets forth our understanding for applying the agreed-upon procedures which the U.S. Department of Housing and Urban Development (“HUD”) has specified, listed in the schedule below, to the electronic submission and related documents listed in the schedule below of Riverview Apartments Preservation LP (the “Partnership”)as of and for the year ended December 31, 2022.The Partnership is responsible for the electronic submission and related documents. This engagement is solely to assist the Partnership and HUD in determining whether the electronic submission of the financial information agrees with the related documents. This report is intended for use by the Partnership and HUD,and is expected to be restricted to the use of these specified parties. Prior to the completion of the engagement, you agree to provide us with written agreement and acknowledgment that the procedures performed are appropriate for the intended purpose of the engagement as noted above. Our engagement will be conducted in accordance with the attestation standards for agreed-upon procedures engagements established by the AICPA and the standards applicable to attestation engagements contained in Government Auditing Standards issued by the Comptroller General of the United States. We are responsible for carrying out the procedures and reporting findings in accordance with these standards. The sufficiency of these procedures is solely the responsibility of the specified parties. We have no responsibility to determine the differences between the procedures to be performed and the procedures that we would have determined to be necessary had we been engaged to perform another form of attestation engagement. Our report will list the procedures performed and our findings.Our report will be addressed to the Board of Directors and HUD and will be intended for use by and restricted to the use of the specified parties as identified above. Our report will contain such restricted-use language. Should we have any reservations with respect to the subject matter, we will discuss them with you before the report is issued. We have no responsibility to update our report for events and circumstances occurring after the date of our report. Further, we take no responsibility for the security of the electronic submission and the information contained therein. DocuSign Envelope ID: 37484117-6246-455D-A028-E63D0EE78672 January 11, 2023 Board of Directors Riverview Apartments Preservation LP Page 2 As part of our engagement, we will request from management written confirmation concerning representations made to us in connection with the agreed upon procedures. You agree to provide such confirmation. The Partnership’s management is 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.The Partnership’s management is also responsible for the presentation of the electronic submission and related documents listed in the schedule below of the Partnership as of and for the year ended December 31, 2022 in accordance with the agreed-upon procedures which HUD has specified, listed in the schedule below,and for selecting the criteria and determining that such criteria are appropriate for your purposes. 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 financial statement package in its entirety. Michael Jenkins is the engagement partner for the agreed-upon procedures specified in this letter. His responsibilities include supervising McMahan and Associates, L.L.C.’s services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the attest report. During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications. Our fee for these services will be based on our standard hourly rates, plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.). Our standard hourly rates vary according to degree of responsibility involved and experience level of the personnel assigned to your audit. However, we estimate that our gross fee for the 2022 agreed-upon procedures engagement will not exceed $700. This fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement, including significant changes in the state of the Partnership’s accounting records and controls. If significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. We will maintain the confidentiality of your personal information and will apply procedures to protect against any unauthorized release of your personal information to third parties. 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 HUD and the U.S. Government Accountability Office pursuant to authority given to it by law or regulation,or to peer reviewers. If requested, access to such attest documentation will be provided under the supervision of McMahan and Associates, L.L.C.’s personnel. Furthermore, upon request, we may provide copies of selected attest documentation to these agencies and regulators. The agencies and regulators may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We agree to retain our attest documentation or workpapers for a period of at least six years from the date or our report. DocuSign Envelope ID: 37484117-6246-455D-A028-E63D0EE78672 January 11, 2023 Board of Directors Riverview Apartments Preservation LP Page 3 At the conclusion of our attest engagement, we will communicate to the Board of Directors the following significant findings from the attest engagement: Significant difficulties, if any, encountered during the engagement; Disagreements with management, if any; Other findings or issues, if any, arising from our procedures that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; Representations we requested from management; and Significant issues, if any, arising from the engagement that were discussed, or the subject of correspondence, with management. Non-attest Services At the end of the year, we agree to perform the following: Propose adjusting or correcting journal entries to be reviewed and approved by the Partnership’s management. Prepare federal and state income tax returns (Form 1065 and Colorado Form 106) for the Partnership’s year ended December 31, 2022. We will assist with the preparation of the Partnership’s financial statements, supplementary financial information, and related notes,but the ultimate authority for review and preparation rests with you. We will not assume management responsibilities on behalf of the Partnership. However, we will provide advice and recommendations to assist management of the Partnership in performing its responsibilities. The Partnership’s management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. Our responsibilities and limitations of the non-attest services are as follows: We will perform the services in accordance with applicable professional standards, including FASB standards and the Statements on Standards for Tax Services issued by the AICPA. The non-attest services are limited to the potential adjusting entries proposal, tax services, and financial statement preparation as previously outlined. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities, including determining account coding and approving journal entries. Our firm will advise the Partnership with regard to tax positions taken in the preparation of the tax return, but the Partnership must make all decisions with regard to those matters. In accordance with the requirements of Government Auditing Standards, we have attached a copy of the latest external peer review report of our firm. Please sign where indicated below to indicate your acknowledgment of, and agreement with, the arrangements for our audit of the financial statements including our respective responsibilities. The signed letter should be returned to us promptly. DocuSign Envelope ID: 37484117-6246-455D-A028-E63D0EE78672 January 11, 2023 Board of Directors Riverview Apartments Preservation LP Page 4 We appreciate the opportunity to be of service to Riverview Apartments Preservation LP and look forward to working with you and your staff. 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:_________________________________ SCHEDULE of AGREED-UPON PROCEDURES Compare the items listed in the “UFRS Rule Information” column with the corresponding 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) Financial Statements and Supplemental Schedules with Financial Statement Data – HUD Basis Surplus Cash (S1300 series of accounts)Supplemental Schedule of Computation of Surplus Cash, Distributions and Residual Receipts Footnotes (S3100 series of accounts)Notes to the Financial Statements Type of Opinion on the Financial Statements and Compliance (S2100-020 and S2300-020) Auditor’s Reports on the Financial Statements, Compliance, and Internal Control Type of Opinion on Financial Data Templates (i.e., Supplemental Data, account S2100-100) Auditor’s Report on Supplemental Financial Data Audit Findings Narrative (S2700 series of accounts)Schedule of Findings and Questioned Costs fe DocuSign Envelope ID: 37484117-6246-455D-A028-E63D0EE78672 Executive Director 1/12/2023 Larry D. Graham, CPA Richard P. Reimann, CPA Stephen A. Willadson, CPA Stephanie L. Means, CPA Jack E. Lenhart, CPA - Retired Joni Kumor, CPA John A. Smith, CPA Scott Buckingham, CPA Andrew J. Beyeler, CPA Rick Mason, CPA - Retired Larry G. Bean, CPA - Of Counsel Report on the Firm’s System of Quality Control May 16, 2022 To the Members of McMahan & Associates, LLC and the Peer Review Committee of the Colorado Society of CPA’s We have reviewed the system of quality control for the accounting and auditing practice of McMahan & Associates, LLC (the firm) in effect for the year ended October 31, 2021. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm’s Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not preformed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer’s Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm’s compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including audits under the Single Audit Act and audits of employee benefit plans. As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion, the system of quality control for the accounting and auditing practice of McMahan & Associates, LLC in effect for the year ended October 31, 2021, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable Member American Institute of Certified Public Accountants 900 Werner Ct., Suite 200 • Casper, WY 82601 Tel: (307) 234-7800 • Fax: (307) 234-9847, (307) 234-5414 DocuSign Envelope ID: 37484117-6246-455D-A028-E63D0EE78672         professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. McMahan & Associates, LLC has received a peer review rating of pass. Lenhart, Mason & Associates, LLC   DocuSign Envelope ID: 37484117-6246-455D-A028-E63D0EE78672