Audit 52170

FY End

2022-05-31

Total Expended

$1.27M

Findings

2

Programs

2

Organization: Trinity Village, Inc. (AR)

Year: 2022 Accepted: 2022-11-29

Auditor: Hcj CPAS & Advisors PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
61309	2022-001	Significant Deficiency	-	B
637751	2022-001	Significant Deficiency	-	B

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$786,484	Yes	1
21.019	Coronavirus Relief Fund	$487,194	-	0

Contacts

Name	Title	Type
HXBKG16D6SS6	Donna Stone	Auditee
8708798221	Mark Glover	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: This accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal awards activity of Trinity Village, Inc. (the "Organization"). The information in the 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 (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. 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. The Association has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The 2021 Compliance Supplement Addendum clarifies that entities who received and expended (or replaced lost revenue) with the U.S. Department of Health and Human Services (HHS) Provider Relief Fund (PRF), Federal Assistance Listing No. 93.498, will not include those amounts on the schedule of expenditures of federal awards until June 30, 2021, fiscal year ends. Therefore, for entities with fiscal year ends on or before June 29, 2021, PRF will not factor into major program determination and is not subject to single audit in that year. The PRF expenditures and lost revenue amounts will first be reported in the schedule of expenditures of federal awards and audited under the Uniform Guidance in a fiscal year ending on or after June 30, 2021. For entities with fiscal year ends of December 31, 2021 and, through fiscal year ends of June 29, 2022, PRF expenditures, including lost revenue that were covered by PRF payments received in Period 1 and Period 2, must be reported on the schedule of expenditures of federal awards, and would therefore be subject to audit under the Uniform Guidance. Part 4 of the Addendum provides specific guidance for amounts to report on the schedule of expenditures of federal awards for entities who receive and expend PRF, by their respective fiscal year ends. The Organization incurred eligible expenditures (or replaced lost revenue) and, therefore recognized revenues totaling $62,940 and $736,62 for the years ended May 31, 2022 and 2021 on the financial statements in accordance with accounting principles generally accepted in the United States of America. De Minimis Rate Used: N Rate Explanation: The Association elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2022-001

Statement of Condition: There was no evidence of review and approval for 5 of 51 expenditures tested in the Provider Relief Fund program for allowable activities and costs. Criteria: The Organization is responsible for determining that the award funding is expended only for allowable activities and allowable costs. The Organization must have procedures in place to determine what is allowable and these procedures must operate effectively to ensure allowability. Cause of condition: The procedure of review and approval by appropriate personnel is in place to determine allowable activities and allowable costs but is not being followed for all expenditures. Effect of condition: During testing, the Organization was not able to provide evidence that all expenditures to the Provider Relief Fund program were reviewed and approved. Context: For the Provider Relief Fund program, a sample of 51 expenditures were selected to test program allowable activities and allowable costs controls and compliance. The audit testing found 5 discrepancies related to the controls for allowable activities and allowable costs in which there was no evidence of review and approval. Recommendation: To ensure all expenditures are properly reviewed and approved, no payment should be made without seeing evidence of review and approval by appropriate personnel. Also, supporting documentation of review and approval should be maintained in an organized fashion for a minimum of seven years. This process should be done to support any testing that needs to be performed or questions that arise from governmental agencies.

Finding 2022-001

Statement of Condition: There was no evidence of review and approval for 5 of 51 expenditures tested in the Provider Relief Fund program for allowable activities and costs. Criteria: The Organization is responsible for determining that the award funding is expended only for allowable activities and allowable costs. The Organization must have procedures in place to determine what is allowable and these procedures must operate effectively to ensure allowability. Cause of condition: The procedure of review and approval by appropriate personnel is in place to determine allowable activities and allowable costs but is not being followed for all expenditures. Effect of condition: During testing, the Organization was not able to provide evidence that all expenditures to the Provider Relief Fund program were reviewed and approved. Context: For the Provider Relief Fund program, a sample of 51 expenditures were selected to test program allowable activities and allowable costs controls and compliance. The audit testing found 5 discrepancies related to the controls for allowable activities and allowable costs in which there was no evidence of review and approval. Recommendation: To ensure all expenditures are properly reviewed and approved, no payment should be made without seeing evidence of review and approval by appropriate personnel. Also, supporting documentation of review and approval should be maintained in an organized fashion for a minimum of seven years. This process should be done to support any testing that needs to be performed or questions that arise from governmental agencies.