FAC Explorer

Audit 359648

FY End
2024-09-30
Total Expended
$1.21M
Findings
6
Programs
2
Organization: Independent Living Place, Inc. (TX)
Year: 2024 Accepted: 2025-06-24
Auditor: M Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565996 2024-001 Significant Deficiency Yes P
565997 2024-002 Material Weakness - P
565998 2024-001 Significant Deficiency Yes P
1142438 2024-001 Significant Deficiency Yes P
1142439 2024-002 Material Weakness - P
1142440 2024-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $816,048 Yes 2
14.195 Section 8 Housing Assistance Payments Program $397,183 Yes 1

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, 2024. 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, 2024, was $735,612 and is included in the federal expenditures presented in the schedule.

Finding Details

Finding 2024-001
Finding #2024-001: 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 audited financial statements for the period ended September 30, 2023 were not entered into the Federal Audit Clearinghouse (FAC) system timely. Criteria: Uniform Guidance requires the audited financial statements to be prepared in accordance with GAAP and submitted to the FAC system timely. Questioned cost: $0 Effect: The Corporation is in violation of the compliance requirement of its major federal program. Cause: Unknown Repeat Finding: No Recommendation: We recommend the audited financial statements be submitted into the FAC 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: CLEARED. On September 25, 2024, the Corporation submitted the September 30, 2023 financial statements to FAC.
Finding 2024-002
Finding #2024-002: 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 2024-001
Finding #2024-001: 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 audited financial statements for the period ended September 30, 2023 were not entered into the Federal Audit Clearinghouse (FAC) system timely. Criteria: Uniform Guidance requires the audited financial statements to be prepared in accordance with GAAP and submitted to the FAC system timely. Questioned cost: $0 Effect: The Corporation is in violation of the compliance requirement of its major federal program. Cause: Unknown Repeat Finding: No Recommendation: We recommend the audited financial statements be submitted into the FAC 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: CLEARED. On September 25, 2024, the Corporation submitted the September 30, 2023 financial statements to FAC.
Finding 2024-001
Finding #2024-001: 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 audited financial statements for the period ended September 30, 2023 were not entered into the Federal Audit Clearinghouse (FAC) system timely. Criteria: Uniform Guidance requires the audited financial statements to be prepared in accordance with GAAP and submitted to the FAC system timely. Questioned cost: $0 Effect: The Corporation is in violation of the compliance requirement of its major federal program. Cause: Unknown Repeat Finding: No Recommendation: We recommend the audited financial statements be submitted into the FAC 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: CLEARED. On September 25, 2024, the Corporation submitted the September 30, 2023 financial statements to FAC.
Finding 2024-002
Finding #2024-002: 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 2024-001
Finding #2024-001: 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 audited financial statements for the period ended September 30, 2023 were not entered into the Federal Audit Clearinghouse (FAC) system timely. Criteria: Uniform Guidance requires the audited financial statements to be prepared in accordance with GAAP and submitted to the FAC system timely. Questioned cost: $0 Effect: The Corporation is in violation of the compliance requirement of its major federal program. Cause: Unknown Repeat Finding: No Recommendation: We recommend the audited financial statements be submitted into the FAC 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: CLEARED. On September 25, 2024, the Corporation submitted the September 30, 2023 financial statements to FAC.