FAC Explorer

Finding 540990 (2024-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 350594
Organization: Integrated Living, Inc. (KS)
Auditor: Ssc CPAS

AI Summary

  • Core Issue: The Organization lacks written policies for internal control over compliance with federal awards, which is a significant deficiency.
  • Impacted Requirements: This violates 2 CFR 200, Subparts D and E, which mandate maintaining such written policies.
  • Recommended Follow-Up: Develop and implement the necessary written policies to ensure compliance with federal regulations.

Finding Text

2024-002 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, 2024 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 2023-003. 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.

Corrective Action Plan

March 21, 2025 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2024‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2025. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2024‐002 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2025. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1117432 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $849,700
14.195 Project-Based Rental Assistance (pbra) $14,463