FAC Explorer

Audit 372842

FY End
2024-12-31
Total Expended
$2.96M
Findings
1
Programs
3
Organization: Koinonia, Inc. 053-11202 (NC)
Year: 2024 Accepted: 2025-12-02
Auditor: BERNARD ROBINSON & COMPANY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1163322 2024-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.27M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $474,033 Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $223,000 Yes 0

Contacts

Name Title Type
GQJHKMGANB73 Chassidy Triplett Auditee
8287582617 Elizabeth Danner Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Koinonia, Inc., 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). Because the Schedule presents only a selected portion of the operations of Koinonia, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Koinonia, Inc.
Koinonia, Inc. had the following loan balance, related to federal awards, outstanding as of December 31, 2024: Program Title: Mortgage insurance for the Purchase or Refinance of Existing Multifamily Housing Projects (Section 223(f)207) Insured Loans; Assistance Listing Number: 14.155; Amount Outstanding: $2,195,107.

Finding Details

Finding 2024-001
Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Statement of Condition: Internal control processes over financial reporting did not ensure that all transactions were properly recorded. Criteria: The HUD Handbook 4370.2, Chapter 2 requires the books and accounts to be complete and accurate. Additionally, 2 CFR Part 200 Section 200.302 Financial Management states that the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each Federal award in accordance with the reporting requirements. Additionally, 2 CFR Part 200 Section 200.303(a), Internal Controls, requires that non-federal entities must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the award in compliance with federal statutes, regulations and the terms and conditions. Effect: Noncompliance with HUD and Uniform Guidance regulations. Cause: Management oversight. Context: A review of journal entries made during the year revealed journal entries made in the incorrect period and erroneous journal entries. Additionally, the review process of the Corporation's financial information did not discover these errors. Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Questioned Costs: N/A Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will review the accounting and financial procedures, system of internal controls and policies.