Audit 346684

FY End
2023-12-31
Total Expended
$3.52M
Findings
28
Programs
2
Year: 2023 Accepted: 2025-03-18

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
528662 2023-001 Material Weakness Yes L
528663 2023-001 Material Weakness Yes L
528664 2023-002 Material Weakness Yes E
528665 2023-002 Material Weakness Yes E
528666 2023-003 Material Weakness - E
528667 2023-003 Material Weakness - E
528668 2023-004 Material Weakness Yes E
528669 2023-004 Material Weakness Yes E
528670 2023-005 Material Weakness - N
528671 2023-006 Material Weakness Yes E
528672 2023-006 Material Weakness Yes E
528673 2023-007 Material Weakness Yes A
528674 2023-008 Material Weakness Yes A
528675 2023-009 Material Weakness - B
1105104 2023-001 Material Weakness Yes L
1105105 2023-001 Material Weakness Yes L
1105106 2023-002 Material Weakness Yes E
1105107 2023-002 Material Weakness Yes E
1105108 2023-003 Material Weakness - E
1105109 2023-003 Material Weakness - E
1105110 2023-004 Material Weakness Yes E
1105111 2023-004 Material Weakness Yes E
1105112 2023-005 Material Weakness - N
1105113 2023-006 Material Weakness Yes E
1105114 2023-006 Material Weakness Yes E
1105115 2023-007 Material Weakness Yes A
1105116 2023-008 Material Weakness Yes A
1105117 2023-009 Material Weakness - B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.81M Yes 8
14.195 Project-Based Rental Assistance (pbra) $701,711 Yes 6

Contacts

Name Title Type
HVBCW8BX8XW1 Takisha Artis Auditee
8158069990 Reginald Keith Mannie Auditor
No contacts on file

Notes to SEFA

Title: Note A-Basis of Presentation 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 Acres Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of Trinity Acres Housing Corporation, HUD Project No. 071-EH540, and is presented on the accrual basis of accounting. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Trinity Acres Housing Corporation, it is noted intended to and does not present the financial position, changes in net assets, or cash flows of Trinity Acres Housing Corporation.
Title: Note B - Summary of Significant Accounting Policies 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 Acres Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. 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. Trinity Acres Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note C - U.S. Department of Housing and Urban Development Loan Program 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 Acres Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Corporation received a Capital Advance in 1992 in the amount of $2,813,400 under CFDA No. 14.157, which requires the compliance with tenant eligibility restrictions for 40 years.

Finding Details

As a result of our audit, we proposed eight (8) 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 of accumulated depreciation, PPP loan, and expenses.
As a result of our audit, we proposed eight (8) 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 of accumulated depreciation, PPP loan, and expenses.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
During our testing of Tenant Move-out, the move-out inspection was not performed for the following tenants:
During our testing of Tenant Move-out, the move-out inspection was not performed for the following tenants:
During our testing of Tenant Move-out, the following tenants were not provided an itemized list :
During our testing of Tenant Move-out, the following tenants were not provided an itemized list :
During our testing of Housing Quality Standards, we were told that an annual inspection was not performed in 2023.
During our testing of Tenant Eligibility, we noted the following:
During our testing of Tenant Eligibility, we noted the following:
The Corporation entered into Paycheck Protection Program Loans (PPP) for $49,775 through Cross River Bank (the Lender). The Lender has charged off the PPP loan, and the SBA purchased it. The Corporation is still liable for the PPP Loan. Due to the PPP loan not being approved by HUD, the payment of principal and interest cannot be made with current Project funds. Therefore, a PPP loan is an Unauthorized Acquisition of Liabilities.
In the prior years, the Corporation owed the project $18,561 for overpayment of the management fee—$9,626 and other advances—$8,935. Per audit compliance procedures, the Due to Owner was not approved by HUD and is considered a finding.. The balance due as of 12/31/2023 is $12,526.95.
The Management Agent’s Certification approved by HUD on 2/22/2022 per page 1 of 4 1(2) Fees: stated the following: a) 6.09 % of residential income collected;b) 0% of commercial income collected;c) 0% of miscellaneous income collected.However, the Management Agent charged the Project 6.09% of miscellaneous income collected fees for December 2023, totaling $16.32.
As a result of our audit, we proposed eight (8) 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 of accumulated depreciation, PPP loan, and expenses.
As a result of our audit, we proposed eight (8) 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 of accumulated depreciation, PPP loan, and expenses.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in from the following tenants:
During our testing of Tenant Move-out, the move-out inspection was not performed for the following tenants:
During our testing of Tenant Move-out, the move-out inspection was not performed for the following tenants:
During our testing of Tenant Move-out, the following tenants were not provided an itemized list :
During our testing of Tenant Move-out, the following tenants were not provided an itemized list :
During our testing of Housing Quality Standards, we were told that an annual inspection was not performed in 2023.
During our testing of Tenant Eligibility, we noted the following:
During our testing of Tenant Eligibility, we noted the following:
The Corporation entered into Paycheck Protection Program Loans (PPP) for $49,775 through Cross River Bank (the Lender). The Lender has charged off the PPP loan, and the SBA purchased it. The Corporation is still liable for the PPP Loan. Due to the PPP loan not being approved by HUD, the payment of principal and interest cannot be made with current Project funds. Therefore, a PPP loan is an Unauthorized Acquisition of Liabilities.
In the prior years, the Corporation owed the project $18,561 for overpayment of the management fee—$9,626 and other advances—$8,935. Per audit compliance procedures, the Due to Owner was not approved by HUD and is considered a finding.. The balance due as of 12/31/2023 is $12,526.95.
The Management Agent’s Certification approved by HUD on 2/22/2022 per page 1 of 4 1(2) Fees: stated the following: a) 6.09 % of residential income collected;b) 0% of commercial income collected;c) 0% of miscellaneous income collected.However, the Management Agent charged the Project 6.09% of miscellaneous income collected fees for December 2023, totaling $16.32.