FAC Explorer

Audit 321062

FY End
2023-09-30
Total Expended
$1.17M
Findings
10
Programs
2
Organization: Independent Living Place, Inc. (TX)
Year: 2023 Accepted: 2024-09-25
Auditor: M Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498318 2023-001 Significant Deficiency - P
498319 2023-002 Material Weakness - L
498320 2023-003 Material Weakness - P
498321 2023-001 Significant Deficiency - P
498322 2023-002 Material Weakness - L
1074760 2023-001 Significant Deficiency - P
1074761 2023-002 Material Weakness - L
1074762 2023-003 Material Weakness - P
1074763 2023-001 Significant Deficiency - P
1074764 2023-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $890,044 Yes 3
14.195 Section 8 Housing Assistance Payments Program $276,832 Yes 2

Contacts

Name Title Type
J7SKR7UCLLT7 Stewart Grounds Auditee
8174882011 Michael Martin Auditor
No contacts on file

Notes to SEFA

Title: Note 4: Federal Loan Balance Accounting Policies: Note 1: Basis of Presentation: This schedule of expenditures of federal awards (Schedule) includes the federal award activity of Independent Living Place, Inc. under programs of the federal government for the year ended September 30, 2023. 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 Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Independent Living Place, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Independent Living Place, Inc. Note 2: Summary of Significant Accounting Policies: Expenditures on 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. Independent Living Place, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Note 3: Indirect Cost Rate: Independent Living Place, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The outstanding federal loan balance outstanding as of September 30, 2023, was $816,048 and is included in the federal expenditures presented in the schedule.

Finding Details

Finding 2023-001
Finding #2023-001: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Significant Deficiency Condition: The Project did not make 12 monthly deposit during the audit period ($490 payments for 5 months and $502 payments for 7 months) totaling $5,964 to the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,450 Effect: Replacement reserve account is underfunded and the Project is in violation of its Regulatory Agreement. Cause: Lack of operating funds available Repeat Finding: Yes Recommendation: We recommend the Project deposit $2,450 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account.
Finding 2023-002
Finding #2023-002: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The audited financial statements for the periods ended September 30, 2018, 2019, 2020, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Unknown. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The 2018-2022 will not be submitted. The September 30, 2023 financial date was submitted into the FASSUB system.
Finding 2023-003
Finding #2023-003: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 Type of Finding: Material Weakness Condition: On February 15, 2011, the Organization’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD under Section 202 of the National Housing Act, as amended. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $816,048 Cause: Federal tax returns Form 990 was not filed. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Organization intends to apply for reinstatement of tax-exempt status.
Finding 2023-001
Finding #2023-001: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Significant Deficiency Condition: The Project did not make 12 monthly deposit during the audit period ($490 payments for 5 months and $502 payments for 7 months) totaling $5,964 to the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,450 Effect: Replacement reserve account is underfunded and the Project is in violation of its Regulatory Agreement. Cause: Lack of operating funds available Repeat Finding: Yes Recommendation: We recommend the Project deposit $2,450 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account.
Finding 2023-002
Finding #2023-002: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The audited financial statements for the periods ended September 30, 2018, 2019, 2020, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Unknown. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The 2018-2022 will not be submitted. The September 30, 2023 financial date was submitted into the FASSUB system.
Finding 2023-001
Finding #2023-001: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Significant Deficiency Condition: The Project did not make 12 monthly deposit during the audit period ($490 payments for 5 months and $502 payments for 7 months) totaling $5,964 to the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,450 Effect: Replacement reserve account is underfunded and the Project is in violation of its Regulatory Agreement. Cause: Lack of operating funds available Repeat Finding: Yes Recommendation: We recommend the Project deposit $2,450 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account.
Finding 2023-002
Finding #2023-002: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The audited financial statements for the periods ended September 30, 2018, 2019, 2020, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Unknown. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The 2018-2022 will not be submitted. The September 30, 2023 financial date was submitted into the FASSUB system.
Finding 2023-003
Finding #2023-003: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 Type of Finding: Material Weakness Condition: On February 15, 2011, the Organization’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD under Section 202 of the National Housing Act, as amended. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $816,048 Cause: Federal tax returns Form 990 was not filed. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Organization intends to apply for reinstatement of tax-exempt status.
Finding 2023-001
Finding #2023-001: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Significant Deficiency Condition: The Project did not make 12 monthly deposit during the audit period ($490 payments for 5 months and $502 payments for 7 months) totaling $5,964 to the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,450 Effect: Replacement reserve account is underfunded and the Project is in violation of its Regulatory Agreement. Cause: Lack of operating funds available Repeat Finding: Yes Recommendation: We recommend the Project deposit $2,450 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account.
Finding 2023-002
Finding #2023-002: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Material Weakness Condition: The audited financial statements for the periods ended September 30, 2018, 2019, 2020, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Unknown. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The 2018-2022 will not be submitted. The September 30, 2023 financial date was submitted into the FASSUB system.