FAC Explorer

Audit 30062

FY End
2022-06-30
Total Expended
$772,657
Findings
4
Programs
2
Organization: Lighthouse Living Centers, Inc. (TX)
Year: 2022 Accepted: 2022-10-23
Auditor: Blazek & Vetterling

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35323 2022-001 Significant Deficiency - N
35324 2022-001 Significant Deficiency - N
611765 2022-001 Significant Deficiency - N
611766 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $485,978 Yes 1
14.855 Section 8 Rental Voucher Program $286,679 - 1

Contacts

Name Title Type
KJ5DJYM9LLY7 Daniel Williams Auditee
7132848420 Tami Preece Auditor
No contacts on file

Notes to SEFA

Title: NOTE 2 U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAM Accounting Policies: Basis of presentation The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Living Centers financial statements in conformity with generally accepted accounting principles. Because the schedule presents only a selected portion of the operations of Living Centers, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Living Centers.Living Centers has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance, does not charge indirect costs, and does not have any subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Living Centers has received a U. S. Department of Housing and Urban Development direct loan under Section 202 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Living Centers received no additional loans during the year. The balance of the loan outstanding at June 30, 2022 is reported in the schedule under Assistance Listing #14.157 in the amount of $485,978.

Finding Details

Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Supportive Housing for the Elderly Assistance Listing #: 14.157 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Section 8 Rental Voucher Program Assistance Listing #: 14.855 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Criteria: Special Tests and Provisions ? Under the terms of the Living Centers? Section 8 Housing Assistance Payment agreement with the U. S. Department of Housing and Urban Development (HUD), 39 of 40 units in the apartment project are available for federal subsidy. One unit was originally used as the manager unit. Condition and context: The Living Centers requested and received subsidy payments for one unit that was unavailable for subsidy. The error was identified after three month?s subsidy was received and was deducted from the following month?s subsidy payment from HUD. Cause: In the initial years of the agreement, one unit was intentionally left offline to be used as the manager unit. In subsequent years, the unit was no longer used in this manner and existing management was not aware that subsidy was not available for the unit. Effect: Living Center received improper subsidy payments of $1,766, which were later reimbursed to HUD through reduction of subsequent month?s subsidy payment. Questioned costs: None after reimbursement. Recommendation: Strengthen policies regarding understanding of contract terms. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Supportive Housing for the Elderly Assistance Listing #: 14.157 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Section 8 Rental Voucher Program Assistance Listing #: 14.855 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Criteria: Special Tests and Provisions ? Under the terms of the Living Centers? Section 8 Housing Assistance Payment agreement with the U. S. Department of Housing and Urban Development (HUD), 39 of 40 units in the apartment project are available for federal subsidy. One unit was originally used as the manager unit. Condition and context: The Living Centers requested and received subsidy payments for one unit that was unavailable for subsidy. The error was identified after three month?s subsidy was received and was deducted from the following month?s subsidy payment from HUD. Cause: In the initial years of the agreement, one unit was intentionally left offline to be used as the manager unit. In subsequent years, the unit was no longer used in this manner and existing management was not aware that subsidy was not available for the unit. Effect: Living Center received improper subsidy payments of $1,766, which were later reimbursed to HUD through reduction of subsequent month?s subsidy payment. Questioned costs: None after reimbursement. Recommendation: Strengthen policies regarding understanding of contract terms. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Supportive Housing for the Elderly Assistance Listing #: 14.157 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Section 8 Rental Voucher Program Assistance Listing #: 14.855 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Criteria: Special Tests and Provisions ? Under the terms of the Living Centers? Section 8 Housing Assistance Payment agreement with the U. S. Department of Housing and Urban Development (HUD), 39 of 40 units in the apartment project are available for federal subsidy. One unit was originally used as the manager unit. Condition and context: The Living Centers requested and received subsidy payments for one unit that was unavailable for subsidy. The error was identified after three month?s subsidy was received and was deducted from the following month?s subsidy payment from HUD. Cause: In the initial years of the agreement, one unit was intentionally left offline to be used as the manager unit. In subsequent years, the unit was no longer used in this manner and existing management was not aware that subsidy was not available for the unit. Effect: Living Center received improper subsidy payments of $1,766, which were later reimbursed to HUD through reduction of subsequent month?s subsidy payment. Questioned costs: None after reimbursement. Recommendation: Strengthen policies regarding understanding of contract terms. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.
Finding 2022-001
Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal programs: U. S. Department of Housing and Urban Development Supportive Housing for the Elderly Assistance Listing #: 14.157 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Section 8 Rental Voucher Program Assistance Listing #: 14.855 Contract Number: TX24-T841006 Contract Year: 07/01/21 ? 06/30/22 Criteria: Special Tests and Provisions ? Under the terms of the Living Centers? Section 8 Housing Assistance Payment agreement with the U. S. Department of Housing and Urban Development (HUD), 39 of 40 units in the apartment project are available for federal subsidy. One unit was originally used as the manager unit. Condition and context: The Living Centers requested and received subsidy payments for one unit that was unavailable for subsidy. The error was identified after three month?s subsidy was received and was deducted from the following month?s subsidy payment from HUD. Cause: In the initial years of the agreement, one unit was intentionally left offline to be used as the manager unit. In subsequent years, the unit was no longer used in this manner and existing management was not aware that subsidy was not available for the unit. Effect: Living Center received improper subsidy payments of $1,766, which were later reimbursed to HUD through reduction of subsequent month?s subsidy payment. Questioned costs: None after reimbursement. Recommendation: Strengthen policies regarding understanding of contract terms. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.