Audit 347577

FY End
2023-12-31
Total Expended
$4.67M
Findings
20
Programs
2
Organization: Trinity Community Housing CORP (IL)
Year: 2023 Accepted: 2025-03-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
529670 2023-001 Material Weakness Yes L
529671 2023-001 Material Weakness Yes L
529672 2023-002 - Yes E
529673 2023-002 - Yes E
529674 2023-003 - - E
529675 2023-003 - - E
529676 2023-004 - - N
529677 2023-005 - - N
529678 2023-006 - - B
529679 2023-007 - - B
1106112 2023-001 Material Weakness Yes L
1106113 2023-001 Material Weakness Yes L
1106114 2023-002 - Yes E
1106115 2023-002 - Yes E
1106116 2023-003 - - E
1106117 2023-003 - - E
1106118 2023-004 - - N
1106119 2023-005 - - N
1106120 2023-006 - - B
1106121 2023-007 - - B

Contacts

Name Title Type
WD9ANCJJR8H5 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 Community 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 Community Housing Corporation., HUD Project No. 071-11231, 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 Community Housing Corporation, it is noted intended to and does not present the financial position, changes in net deficit, or cash flows of Trinity Community 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 Community 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 Community 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 Community Housing Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Corporation. has refinanced and is operating Section 223(f)/207 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Corporation. received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 consists of:

Finding Details

As a result of our audit, we proposed seventeen (17) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as due from the owner, accumulated depreciation, proper-of-use assets-operating lease, PNC line of credit, debt issuance cost, lease liability revenue, and expenses.
As a result of our audit, we proposed seventeen (17) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as due from the owner, accumulated depreciation, proper-of-use assets-operating lease, PNC line of credit, debt issuance cost, lease liability revenue, and expenses.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenant:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenant:
During the testing of move-out, the following tenant did not receive a security deposit within 30 days after the move-out date:
During the testing of move-out, the following tenant did not receive a security deposit within 30 days after the move-out date:
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
During our testing of Housing Quality Standards, we were told that an annual inspection was not performed in 2023.
: During our Testing of Cash Disbursements, no approval was noted on two (2) of the vendors’ invoices.
The Management Agent’s Certification approved by HUD on 2/22/2022 per page 1 of 4 1(2) Fees: stated the following: a) 5.57% of residential income collected;b)0% of commercial income collected; c) 0% of miscellaneous income collected However, the Management Agent charged the Project 5.57% of miscellaneous income collected fees for April 2023, May 2023, and December 2023, totaling $35.47.
As a result of our audit, we proposed seventeen (17) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as due from the owner, accumulated depreciation, proper-of-use assets-operating lease, PNC line of credit, debt issuance cost, lease liability revenue, and expenses.
As a result of our audit, we proposed seventeen (17) audit adjusting entries to correct the books as originally provided to us for audit. Most of these adjustments were material to the financial statements. Adjustments were necessary for basis areas such as due from the owner, accumulated depreciation, proper-of-use assets-operating lease, PNC line of credit, debt issuance cost, lease liability revenue, and expenses.
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenant:
The Enterprise Income Verification (EIV) was not obtained after 90 days from the date of move-in for the following tenant:
During the testing of move-out, the following tenant did not receive a security deposit within 30 days after the move-out date:
During the testing of move-out, the following tenant did not receive a security deposit within 30 days after the move-out date:
During the testing of work orders, the Project could not provide a detailed schedule for work orders and/or work orders for the period of January 1, 2023, through December 31, 2023, for testing.
During our testing of Housing Quality Standards, we were told that an annual inspection was not performed in 2023.
: During our Testing of Cash Disbursements, no approval was noted on two (2) of the vendors’ invoices.
The Management Agent’s Certification approved by HUD on 2/22/2022 per page 1 of 4 1(2) Fees: stated the following: a) 5.57% of residential income collected;b)0% of commercial income collected; c) 0% of miscellaneous income collected However, the Management Agent charged the Project 5.57% of miscellaneous income collected fees for April 2023, May 2023, and December 2023, totaling $35.47.