Audit 316785

FY End
2022-12-31
Total Expended
$4.71M
Findings
24
Programs
2
Organization: Trinity Community Housing CORP (IL)
Year: 2022 Accepted: 2024-08-06

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
480592 2022-001 Material Weakness Yes L
480593 2022-001 Material Weakness Yes L
480594 2022-002 Material Weakness - N
480595 2022-002 Material Weakness - N
480596 2022-003 Material Weakness Yes B
480597 2022-004 Material Weakness Yes A
480598 2022-005 Material Weakness - E
480599 2022-005 Material Weakness - E
480600 2022-006 Material Weakness - E
480601 2022-006 Material Weakness - E
480602 2022-007 Material Weakness - B
480603 2022-008 Material Weakness - B
1057034 2022-001 Material Weakness Yes L
1057035 2022-001 Material Weakness Yes L
1057036 2022-002 Material Weakness - N
1057037 2022-002 Material Weakness - N
1057038 2022-003 Material Weakness Yes B
1057039 2022-004 Material Weakness Yes A
1057040 2022-005 Material Weakness - E
1057041 2022-005 Material Weakness - E
1057042 2022-006 Material Weakness - E
1057043 2022-006 Material Weakness - E
1057044 2022-007 Material Weakness - B
1057045 2022-008 Material Weakness - B

Contacts

Name Title Type
WD9ANCJJR8H5 Takisha Artis Auditee
8158069990 Reginald Keith Mannie Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Expenditures reported 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. De Minimis Rate Used: N Rate Explanation: Trinity Community Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

As a result of our audit, we proposed twenty-one (21) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas such as allowance for doubtful accounts, accounts receivable -HUD, due from the owner, MIP escrow, fixed assets, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loan, PNC line of credit, debt issuance cost, net assets, revenue, and expenses.
As a result of our audit, we proposed twenty-one (21) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas such as allowance for doubtful accounts, accounts receivable -HUD, due from the owner, MIP escrow, fixed assets, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loan, PNC line of credit, debt issuance cost, net assets, revenue, and expenses.
During our testing of Replacement Reserve monthly deposits, we noted that required monthly payments to Replacement Reserve were unfunded by $2,503.53 as follows:
During our testing of Replacement Reserve monthly deposits, we noted that required monthly payments to Replacement Reserve were unfunded by $2,503.53 as follows:
During our testing of cash disbursements, we noted the following: 1. The vendor’s invoice and/or other supporting documentation is unavailable for examination purposes. 4 (four) Exceptions were noted 2. No approval noted on the vendor’s invoice. 3 (three ) Exceptions were noted.
The Corporation without written consent from HUD and/or approval from HUD enters into a line of credit of $40,000 with PNC bank. PNC bank confirmed that the line of credit balance of $ 35,078 is unpaid and the balance due as of December 31, 2022. This is a repeated finding.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenants:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenants:
During our Testing of Tenants for Smith, Brenda Move-In Date 7/1/2022 Unit# 308 Form HUD- 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures per Section D. Income Information, Total Pension Income was understated by $2,688 as follow:
During our Testing of Tenants for Smith, Brenda Move-In Date 7/1/2022 Unit# 308 Form HUD- 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures per Section D. Income Information, Total Pension Income was understated by $2,688 as follow:
Per examination of insurance coverage, we noted that the Project does not have Workers Compensation and Employer Liability Insurance coverage for its employees for the period 1/01/2022 through 12/31/2022.
For the procurement of small purchases over $10,000, the Management Agent did not obtain price or rate quotations from an adequate number of qualified sources for the following procurements per the Uniform Guidance:
As a result of our audit, we proposed twenty-one (21) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas such as allowance for doubtful accounts, accounts receivable -HUD, due from the owner, MIP escrow, fixed assets, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loan, PNC line of credit, debt issuance cost, net assets, revenue, and expenses.
As a result of our audit, we proposed twenty-one (21) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments proposed were material to the financial statements. Adjustments were necessary for basis areas such as allowance for doubtful accounts, accounts receivable -HUD, due from the owner, MIP escrow, fixed assets, accumulated depreciation, accounts payable, accrued wages payable, accrued payroll taxes, PPP loan, PNC line of credit, debt issuance cost, net assets, revenue, and expenses.
During our testing of Replacement Reserve monthly deposits, we noted that required monthly payments to Replacement Reserve were unfunded by $2,503.53 as follows:
During our testing of Replacement Reserve monthly deposits, we noted that required monthly payments to Replacement Reserve were unfunded by $2,503.53 as follows:
During our testing of cash disbursements, we noted the following: 1. The vendor’s invoice and/or other supporting documentation is unavailable for examination purposes. 4 (four) Exceptions were noted 2. No approval noted on the vendor’s invoice. 3 (three ) Exceptions were noted.
The Corporation without written consent from HUD and/or approval from HUD enters into a line of credit of $40,000 with PNC bank. PNC bank confirmed that the line of credit balance of $ 35,078 is unpaid and the balance due as of December 31, 2022. This is a repeated finding.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenants:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenants:
During our Testing of Tenants for Smith, Brenda Move-In Date 7/1/2022 Unit# 308 Form HUD- 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures per Section D. Income Information, Total Pension Income was understated by $2,688 as follow:
During our Testing of Tenants for Smith, Brenda Move-In Date 7/1/2022 Unit# 308 Form HUD- 50059 Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures per Section D. Income Information, Total Pension Income was understated by $2,688 as follow:
Per examination of insurance coverage, we noted that the Project does not have Workers Compensation and Employer Liability Insurance coverage for its employees for the period 1/01/2022 through 12/31/2022.
For the procurement of small purchases over $10,000, the Management Agent did not obtain price or rate quotations from an adequate number of qualified sources for the following procurements per the Uniform Guidance: