EIN: 752263157
UEI: J7SKR7UCLLT7
Audited by: M Group, LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 24, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 24, 2025 (253 days ago).
What is a management decision? →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.
Show full finding ▾Hide full finding ▴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.
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, 2024 Compliance Review: A. 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 #2024-01: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION COMPLETED: CLEARED. The Corporation submitted the audited financials for the year ended September 30, 2023 on September 25, 2024. 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.
2023-002
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.
Show full finding ▾Hide full finding ▴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.
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, 2024 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 #2024-002: 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.
FAC accepted this audit on September 25, 2024 — management decision was due March 25, 2025.
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.
Show full finding ▾Hide full finding ▴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.
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 A. 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 1: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION COMPLETED: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account. 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.
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.
Show full finding ▾Hide full finding ▴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.
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 #2023-002: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION TO BE COMPLETED: The Corporation completed and submitted the financials for audit for the year ended September 30, 2023. The financial data was submitted into the FASSUB system. 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.
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.
Show full finding ▾Hide full finding ▴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 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.
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