FAC Explorer

Audit 10307

FY End
2022-08-31
Total Expended
$1.30M
Findings
12
Programs
5
Organization: Lifetime Independence for Everyone, Inc. and Subsidiary (TX)
Year: 2022 Accepted: 2024-01-08
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7901 2022-002 Significant Deficiency - AB
7902 2022-003 Significant Deficiency - AB
7903 2022-004 Significant Deficiency - L
7904 2022-002 Significant Deficiency - AB
7905 2022-003 Significant Deficiency - AB
7906 2022-004 Significant Deficiency - L
584343 2022-002 Significant Deficiency - AB
584344 2022-003 Significant Deficiency - AB
584345 2022-004 Significant Deficiency - L
584346 2022-002 Significant Deficiency - AB
584347 2022-003 Significant Deficiency - AB
584348 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.432 Acl Centers for Independent Living $218,803 - 0
93.432 Covid-19: Acl Centers for Independent Living $137,715 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $100,270 Yes 3
93.369 Acl Independent Living State Grants $96,337 - 0
93.268 Immunization Cooperative Agreements $5,913 - 0

Contacts

Name Title Type
EYT7D31P5HL6 Michell Crain Auditee
8067955433 Gwen Mansfield-Vogt Auditor
No contacts on file

Notes to SEFA

Title: Loans Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Lifetime Independence For Everyone, Inc. and Subsidiary (the " Organization”) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate. The Organization did not expend federal awards related to loans or loan guarantees during the year.
Title: Federally Funded Insurance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Lifetime Independence For Everyone, Inc. and Subsidiary (the " Organization”) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate. The Organization has no federally funded insurance.
Title: Noncash Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Lifetime Independence For Everyone, Inc. and Subsidiary (the " Organization”) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate. The Organization did not receive any noncash assistance for the year ended August 31, 2022.

Finding Details

Finding 2022-002
2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: The Entity charged the incorrect allocation % in 9 out of 20 nonpayroll expenses and 5 out of 25 payroll expenses. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to 2 CFR 200.405(a)(2), costs allocated to a Federal award must be distributed in proportions that may be approximated using reasonable methods. Effect: The Entity may unintentionally under/over charge expenses to the grant which could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify the approved allocation % is charged on expenses. Questioned Costs: Nonpayroll allocated costs – known questioned costs of $727 and likely questioned costs of $14,513. Payroll allocated costs – No questioned costs. Federal award was undercharged by $71 and, when extrapolated, the undercharge was calculated at $7,132. Combined questioned costs: known questioned costs of $655 and likely questioned costs of $7,381
Finding 2022-003
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: During our review of payroll related transactions, 2 of the 25 payroll samples tested did not have review and approval of the Supervisor on the timecard. Criteria: 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Effect: The Entity may unintentionally under/over compensate what is applicable for the work performed by that employee. This could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify that documentation was maintained to indicate the employees’ time paid under the federal grant. Questioned Costs: No questioned costs identified.
Finding 2022-004
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: LIFE was not verifying the classification of consumer goals agreed in the ILS system and DRS system on 1 of 49 consumers tested. In addition, inaccurate listings of consumers were initially provided to the auditors. Criteria: 2 CFR 200.303 requires a non-Federal entity to Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per ILS Program Standards 5.6.3.5 Revision 19-1, all entries to the Independent Living Services Data Reporting System made by the service provider will be considered a part of the consumer case file. Each consumer case file must minimally meet the requirements of 34 CFR, Subtitle B, Chapter III, Part 364, §364.53, and provide documentation concerning: the consumer’s goals for independence and anticipated methods and services to achieve the goals. Effect: The classification of consumer goals reported and tracked in the DRS system may have been reported in the wrong category. Cause: Lack of internal controls at LIFE to ensure that consumer goals are reported correctly in both the ILS and DRS system and accurate reports are generated. Questioned Costs: No questioned costs identified.
Finding 2022-002
2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: The Entity charged the incorrect allocation % in 9 out of 20 nonpayroll expenses and 5 out of 25 payroll expenses. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to 2 CFR 200.405(a)(2), costs allocated to a Federal award must be distributed in proportions that may be approximated using reasonable methods. Effect: The Entity may unintentionally under/over charge expenses to the grant which could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify the approved allocation % is charged on expenses. Questioned Costs: Nonpayroll allocated costs – known questioned costs of $727 and likely questioned costs of $14,513. Payroll allocated costs – No questioned costs. Federal award was undercharged by $71 and, when extrapolated, the undercharge was calculated at $7,132. Combined questioned costs: known questioned costs of $655 and likely questioned costs of $7,381
Finding 2022-003
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: During our review of payroll related transactions, 2 of the 25 payroll samples tested did not have review and approval of the Supervisor on the timecard. Criteria: 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Effect: The Entity may unintentionally under/over compensate what is applicable for the work performed by that employee. This could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify that documentation was maintained to indicate the employees’ time paid under the federal grant. Questioned Costs: No questioned costs identified.
Finding 2022-004
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: LIFE was not verifying the classification of consumer goals agreed in the ILS system and DRS system on 1 of 49 consumers tested. In addition, inaccurate listings of consumers were initially provided to the auditors. Criteria: 2 CFR 200.303 requires a non-Federal entity to Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per ILS Program Standards 5.6.3.5 Revision 19-1, all entries to the Independent Living Services Data Reporting System made by the service provider will be considered a part of the consumer case file. Each consumer case file must minimally meet the requirements of 34 CFR, Subtitle B, Chapter III, Part 364, §364.53, and provide documentation concerning: the consumer’s goals for independence and anticipated methods and services to achieve the goals. Effect: The classification of consumer goals reported and tracked in the DRS system may have been reported in the wrong category. Cause: Lack of internal controls at LIFE to ensure that consumer goals are reported correctly in both the ILS and DRS system and accurate reports are generated. Questioned Costs: No questioned costs identified.
Finding 2022-002
2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: The Entity charged the incorrect allocation % in 9 out of 20 nonpayroll expenses and 5 out of 25 payroll expenses. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to 2 CFR 200.405(a)(2), costs allocated to a Federal award must be distributed in proportions that may be approximated using reasonable methods. Effect: The Entity may unintentionally under/over charge expenses to the grant which could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify the approved allocation % is charged on expenses. Questioned Costs: Nonpayroll allocated costs – known questioned costs of $727 and likely questioned costs of $14,513. Payroll allocated costs – No questioned costs. Federal award was undercharged by $71 and, when extrapolated, the undercharge was calculated at $7,132. Combined questioned costs: known questioned costs of $655 and likely questioned costs of $7,381
Finding 2022-003
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: During our review of payroll related transactions, 2 of the 25 payroll samples tested did not have review and approval of the Supervisor on the timecard. Criteria: 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Effect: The Entity may unintentionally under/over compensate what is applicable for the work performed by that employee. This could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify that documentation was maintained to indicate the employees’ time paid under the federal grant. Questioned Costs: No questioned costs identified.
Finding 2022-004
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: LIFE was not verifying the classification of consumer goals agreed in the ILS system and DRS system on 1 of 49 consumers tested. In addition, inaccurate listings of consumers were initially provided to the auditors. Criteria: 2 CFR 200.303 requires a non-Federal entity to Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per ILS Program Standards 5.6.3.5 Revision 19-1, all entries to the Independent Living Services Data Reporting System made by the service provider will be considered a part of the consumer case file. Each consumer case file must minimally meet the requirements of 34 CFR, Subtitle B, Chapter III, Part 364, §364.53, and provide documentation concerning: the consumer’s goals for independence and anticipated methods and services to achieve the goals. Effect: The classification of consumer goals reported and tracked in the DRS system may have been reported in the wrong category. Cause: Lack of internal controls at LIFE to ensure that consumer goals are reported correctly in both the ILS and DRS system and accurate reports are generated. Questioned Costs: No questioned costs identified.
Finding 2022-002
2022-002 – Allocation Percentage Charged – Significant Deficiency in Internal Controls over Compliance ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: The Entity charged the incorrect allocation % in 9 out of 20 nonpayroll expenses and 5 out of 25 payroll expenses. Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entities is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to 2 CFR 200.405(a)(2), costs allocated to a Federal award must be distributed in proportions that may be approximated using reasonable methods. Effect: The Entity may unintentionally under/over charge expenses to the grant which could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify the approved allocation % is charged on expenses. Questioned Costs: Nonpayroll allocated costs – known questioned costs of $727 and likely questioned costs of $14,513. Payroll allocated costs – No questioned costs. Federal award was undercharged by $71 and, when extrapolated, the undercharge was calculated at $7,132. Combined questioned costs: known questioned costs of $655 and likely questioned costs of $7,381
Finding 2022-003
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: During our review of payroll related transactions, 2 of the 25 payroll samples tested did not have review and approval of the Supervisor on the timecard. Criteria: 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Effect: The Entity may unintentionally under/over compensate what is applicable for the work performed by that employee. This could lead to questioned costs and repayment of funds to the Grantor agency. Cause: The Entity does not have proper controls in place to verify that documentation was maintained to indicate the employees’ time paid under the federal grant. Questioned Costs: No questioned costs identified.
Finding 2022-004
ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2022 Condition: LIFE was not verifying the classification of consumer goals agreed in the ILS system and DRS system on 1 of 49 consumers tested. In addition, inaccurate listings of consumers were initially provided to the auditors. Criteria: 2 CFR 200.303 requires a non-Federal entity to Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ‘‘Standards for Internal Control in the Federal Government’’ issued by the Comptroller General of the United States and the ‘‘Internal Control Integrated Framework’’, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per ILS Program Standards 5.6.3.5 Revision 19-1, all entries to the Independent Living Services Data Reporting System made by the service provider will be considered a part of the consumer case file. Each consumer case file must minimally meet the requirements of 34 CFR, Subtitle B, Chapter III, Part 364, §364.53, and provide documentation concerning: the consumer’s goals for independence and anticipated methods and services to achieve the goals. Effect: The classification of consumer goals reported and tracked in the DRS system may have been reported in the wrong category. Cause: Lack of internal controls at LIFE to ensure that consumer goals are reported correctly in both the ILS and DRS system and accurate reports are generated. Questioned Costs: No questioned costs identified.