FAC Explorer

Audit 301005

FY End
2023-06-30
Total Expended
$869,694
Findings
4
Programs
2
Organization: Integrated Living, Inc. (KS)
Year: 2023 Accepted: 2024-03-29
Auditor: Ssc CPAS P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
390120 2023-002 Significant Deficiency Yes B
390121 2023-003 Significant Deficiency Yes P
966562 2023-002 Significant Deficiency Yes B
966563 2023-003 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $849,700 Yes 2
14.195 Section 8 Housing Assistance Payments Program $19,994 - 0

Contacts

Name Title Type
Q6QNLNRG6365 John Griffin Auditee
7852425035 Timothy D. Bannwarth Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: In accordance with Section 2 U.S. Code of Federal Regulations Part 200.412 the Organization is allowed to elect to use the ten percent de minimis indirect cost rate. The Organization has elected to not use this rate The accompanying schedule of expenditures of federal awards includes the federal grant activity of Integrated Living, Inc. (the Organization) and is presented 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: LOANS OUTSTANDING AT YEAR END Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: In accordance with Section 2 U.S. Code of Federal Regulations Part 200.412 the Organization is allowed to elect to use the ten percent de minimis indirect cost rate. The Organization has elected to not use this rate The Organization’s outstanding loan balances with the U.S. Department of Housing and Urban Development as of June 30, 2023 totaled $849,700.

Finding Details

Finding 2023-002
2023-002 Review and Approval of Project Expenditures (Significant Deficiency) Federal Agency: Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Person with Disabilities Assistance Listing Number: 14.181 HUD Project Number: 102-HD018 Award period: Year ended June 30, 2023 Criteria: An effective internal control system exists if controls are effective in preventing or detecting material misstatements and potential fraudulent activities in the cash disbursement process. It provides reasonable assurance for the safeguarding of assets, the reliability of financial information and compliance with laws and regulations, including the Uniform Guidance. Condition: We have determined that there was an inadequate design of internal control over the approval of project expenditures during the fiscal year ended June 30, 2023. We noted that, out of forty tested expenditures totaling $35,056, three expenditures totaling $840 did not show that evidence of approval of that expenditure was obtained. Cause: The Organization’s policies and procedures were not designed to ensure that all project expenditures obtain proper approval and that evidence of that approval is maintained. Effect: The Organization's lack of proper internal controls over approval of project expenditures increases the risk of material misstatements and potential fraudulent activities. Recommendation: We recommend that the Organization obtain proper approval of all project expenditures and that evidence of that approval is documented and maintained. Repeat Finding: Yes. Prior year reference number 2022-002. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges there is a control weakness as discussed above and will work to implement additional controls and reviews as recommended.
Finding 2023-003
2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Federal Agency: Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Person with Disabilities Assistance Listing Number: 14.181 HUD Project Number: 102‐HD018 Award period: Year ended June 30, 2023 Criteria: According to 2 CFR 200, Subparts D and E an Organization is required to maintain written policies for the internal control over compliance of federal awards. Condition: The Organization does not maintain these written policies for the internal control over compliance of federal awards. Cause: The Organization’s policies and procedures were not designed to include written policies for the internal control over compliance of federal awards. Effect: The Organization's lack of written policies for the internal control over compliance of federal awards increases the risk of non compliance of its major federal programs. Recommendation: We recommend that the Organization develop written policies for the internal control over compliance of federal awards. Repeat Finding: Yes. Prior year reference number 2022-003. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies for the internal control over compliance of federal awards.
Finding 2023-002
2023-002 Review and Approval of Project Expenditures (Significant Deficiency) Federal Agency: Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Person with Disabilities Assistance Listing Number: 14.181 HUD Project Number: 102-HD018 Award period: Year ended June 30, 2023 Criteria: An effective internal control system exists if controls are effective in preventing or detecting material misstatements and potential fraudulent activities in the cash disbursement process. It provides reasonable assurance for the safeguarding of assets, the reliability of financial information and compliance with laws and regulations, including the Uniform Guidance. Condition: We have determined that there was an inadequate design of internal control over the approval of project expenditures during the fiscal year ended June 30, 2023. We noted that, out of forty tested expenditures totaling $35,056, three expenditures totaling $840 did not show that evidence of approval of that expenditure was obtained. Cause: The Organization’s policies and procedures were not designed to ensure that all project expenditures obtain proper approval and that evidence of that approval is maintained. Effect: The Organization's lack of proper internal controls over approval of project expenditures increases the risk of material misstatements and potential fraudulent activities. Recommendation: We recommend that the Organization obtain proper approval of all project expenditures and that evidence of that approval is documented and maintained. Repeat Finding: Yes. Prior year reference number 2022-002. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges there is a control weakness as discussed above and will work to implement additional controls and reviews as recommended.
Finding 2023-003
2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Federal Agency: Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Person with Disabilities Assistance Listing Number: 14.181 HUD Project Number: 102‐HD018 Award period: Year ended June 30, 2023 Criteria: According to 2 CFR 200, Subparts D and E an Organization is required to maintain written policies for the internal control over compliance of federal awards. Condition: The Organization does not maintain these written policies for the internal control over compliance of federal awards. Cause: The Organization’s policies and procedures were not designed to include written policies for the internal control over compliance of federal awards. Effect: The Organization's lack of written policies for the internal control over compliance of federal awards increases the risk of non compliance of its major federal programs. Recommendation: We recommend that the Organization develop written policies for the internal control over compliance of federal awards. Repeat Finding: Yes. Prior year reference number 2022-003. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies for the internal control over compliance of federal awards.