Audit 348542

FY End
2024-12-31
Total Expended
$1.58M
Findings
2
Programs
1
Organization: Independence Communities INC (TX)
Year: 2024 Accepted: 2025-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
537286 2024-001 - Yes N
1113728 2024-001 - Yes N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $179,825 Yes 0

Contacts

Name Title Type
CJ9VFA7396S3 Darius Tuminas Auditee
9365216110 Nancy MacK 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Independence Village Apartments, HUD Project No. 114-HD024 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of Independence Village Apartments, it is not intended to and does not present the financial position, changes in net assets or cash flows of Independence Village Apartments.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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 reimbursements.
Title: INDIRECT COST RATE 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: HUD CAPITAL ADVANCE 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Project received a loan under HUD's Section 811 Capital Advance Program in 2005. The loan balance at the beginning of the year, amounting to $1,403,439, is included in the schedule of expenditures of federal awards The Project has received no additional funds during the year. The loan balance is reported as net assets with donor restrictions in the statement of financial position.

Finding Details

Findings reference number: 2024-001 - Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities, AL 14.181 - Type of finding: Compliance - Resolution Status: Completed. - Population size: N/A - Sample size: N/A - Repeat finding: Yes. - Criteria: Monthly deposits to the replacement reserve must be made in a timely manner. - Condition: The required deposits to the replacement reserve for December 2024 was not done. - Cause: Management oversight. - Effect: There was a shortfall in the monthly deposits to the replacement reserve as required by the Regulatory Agreement. - Noncompliance code: N. - Questioned costs: $900. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114HD024 - Context: This was noted while performing audit procedures on the replacement reserve. - Recommendation: Management should ensure that all deposits required to be made to the replacement reserve be made on a timely basis. - Auditee's comments: Auditee agrees with the finding and made the required deposit on February 5, 2025. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: February 5, 2025 - Response: Management plans to make all deposits in a timely manner.
Findings reference number: 2024-001 - Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities, AL 14.181 - Type of finding: Compliance - Resolution Status: Completed. - Population size: N/A - Sample size: N/A - Repeat finding: Yes. - Criteria: Monthly deposits to the replacement reserve must be made in a timely manner. - Condition: The required deposits to the replacement reserve for December 2024 was not done. - Cause: Management oversight. - Effect: There was a shortfall in the monthly deposits to the replacement reserve as required by the Regulatory Agreement. - Noncompliance code: N. - Questioned costs: $900. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114HD024 - Context: This was noted while performing audit procedures on the replacement reserve. - Recommendation: Management should ensure that all deposits required to be made to the replacement reserve be made on a timely basis. - Auditee's comments: Auditee agrees with the finding and made the required deposit on February 5, 2025. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: February 5, 2025 - Response: Management plans to make all deposits in a timely manner.