FAC Explorer

Finding 498320 (2023-003)

Material Weakness
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2024-09-25
Audit: 321062
Organization: Independent Living Place, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Organization lost its tax-exempt status due to not filing Form 990 for three years.
  • Impacted Requirements: This violation affects compliance with federal program regulations under HUD's Section 202.
  • Recommended Follow-up: The Organization should file necessary forms to reinstate its tax-exempt status.

Finding Text

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Listing 14.157 Type of Finding: Material Weakness Condition: On February 15, 2011, the Organization’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years.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.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING #2023-003: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 CORRECTIVE ACTION TO BE COMPLETED: The Organization intends to apply for reinstatement of tax-exempt status. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

Categories

Questioned Costs HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 498318 2023-001
    Significant Deficiency
  • 498319 2023-002
    Material Weakness
  • 498321 2023-001
    Significant Deficiency
  • 498322 2023-002
    Material Weakness
  • 1074760 2023-001
    Significant Deficiency
  • 1074761 2023-002
    Material Weakness
  • 1074762 2023-003
    Material Weakness
  • 1074763 2023-001
    Significant Deficiency
  • 1074764 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $890,044
14.195 Section 8 Housing Assistance Payments Program $276,832