Audit 353383

FY End
2024-12-31
Total Expended
$2.06M
Findings
2
Programs
2
Organization: Trinity Terrace (WI)
Year: 2024 Accepted: 2025-04-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
554816 2024-001 Significant Deficiency - N
1131258 2024-001 Significant Deficiency - N

Contacts

Name Title Type
PJPZW1L1JBF6 Nicole Chwala Auditee
9202064930 Dawn Yarrington Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Corporation under programs of the federal government for the year ended December 31, 2024. 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the Corporation did not provide federal awards to subrecipients during the year ended December 31, 2024.
Title: FEDERAL LOAN PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule related to the Mortgage Insurance for the Purchase or Refinancing of Existing Multi-Family Housing Units program represent the balance at the beginning of the audit period. Amounts outstanding as of December 31, 2024, under this program total $1,774,270.

Finding Details

2024 – 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Units Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 075-11186 - 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and immaterial noncompliance. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Trinity Terrace, Inc., should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Trinity Terrace, Inc., did not have adequate internal controls designed to ensure replacement reserve deposits were updated based on the provisions of the regulatory agreement. Questioned costs: $315 Context: During our testing, it was noted that Trinity Terrace, Inc., did not update the October and November 2024 replacement reserve deposits as prescribed in the regulatory agreement. Cause: Trinity Terrace, Inc., was unaware the bank did not update the October and November 2024 replacement reserve deposits. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure replacement reserve deposits are updated timely to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.
2024 – 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Units Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 075-11186 - 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and immaterial noncompliance. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Trinity Terrace, Inc., should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Trinity Terrace, Inc., did not have adequate internal controls designed to ensure replacement reserve deposits were updated based on the provisions of the regulatory agreement. Questioned costs: $315 Context: During our testing, it was noted that Trinity Terrace, Inc., did not update the October and November 2024 replacement reserve deposits as prescribed in the regulatory agreement. Cause: Trinity Terrace, Inc., was unaware the bank did not update the October and November 2024 replacement reserve deposits. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure replacement reserve deposits are updated timely to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.