FAC Explorer

Audit 20221

FY End
2022-12-31
Total Expended
$1.25M
Findings
2
Programs
2
Organization: Metropolitan Consortium of Community Developers (MN)
Year: 2022 Accepted: 2023-05-07
Auditor: Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
24066 2022-003 Material Weakness - I
600508 2022-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.13M Yes 1
93.U01 Unknown $113,176 - 0

Contacts

Name Title Type
QHFHLM6JG633 Trish Deanda Auditee
6128433268 Brian Barsi 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. Suchexpenditures are recognized following the cost principle contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement.The Organization has elected not to use the 10-percent de minimis indirect cost rate allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Metropolitan Consortium of Community Developers (the Organization)under programs of the federal government for the year ended December 31, 2022. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Program Income Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principle contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or are limited as to reimbursement.The Organization has elected not to use the 10-percent de minimis indirect cost rate allowedunder the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. In accordance with terms of the U.S. Department of the Treasury agreement, program income was used to reduce the amount of federal funds used to fund additional loans to borrowers.Program income earned on federal grant programs was not included in the schedule of expenditures of federal awards.

Finding Details

Finding 2022-003
Finding - Procurement, Suspension and Debarment, CDFI Rapid Response Program, Assistance Listing Number 21.024, 2021-2023 Award Years, U.S. Department of Treasury; Criteria or Specific Requirement Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6) Condition Found Out of five loans selected for testing, two of the loan agreements did not include a representation that the borrower is not currently debarred, suspended, excluded or disqualified by any Federal department or agency, and no other procedures were performed by the Organization to determine if these two borrowers were debarred, suspended, excluded or disqualified. A subsequent review of the borrowers determined that neither was debarred, suspended, excluded or disqualified. Cause A loan template from an outside entity was used which did not contain a representation that borrower is not currently debarred, suspended, excluded or disqualified, and no other procedures to check for suspension or debarment were conducted. Effect Loans to recipient borrowers that are debarred, suspended, excluded or disqualified could occur. Identification as a Repeat Finding Not a repeat finding. Questioned Costs None. Recommendation The award agreement requires that the Organization shall include in all of its procurement and nonprocurement contracts and agreements, between the Organization and an individual or entity receiving any portion of the CDFI RRP Assistance, a representation that such individual or entity is not currently debarred, suspended, excluded or disqualified by any Federal department or agency. We recommend procedures be implemented to include the review of agreements to determine that this required representation is included. View of Responsible Officials and Planned Corrective Action See corrective action plan.
Finding 2022-003
Finding - Procurement, Suspension and Debarment, CDFI Rapid Response Program, Assistance Listing Number 21.024, 2021-2023 Award Years, U.S. Department of Treasury; Criteria or Specific Requirement Non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. (2 CFR sections 200.212 and 200.318(h); 2 CFR section 180.300; 48 CFR section 52.209-6) Condition Found Out of five loans selected for testing, two of the loan agreements did not include a representation that the borrower is not currently debarred, suspended, excluded or disqualified by any Federal department or agency, and no other procedures were performed by the Organization to determine if these two borrowers were debarred, suspended, excluded or disqualified. A subsequent review of the borrowers determined that neither was debarred, suspended, excluded or disqualified. Cause A loan template from an outside entity was used which did not contain a representation that borrower is not currently debarred, suspended, excluded or disqualified, and no other procedures to check for suspension or debarment were conducted. Effect Loans to recipient borrowers that are debarred, suspended, excluded or disqualified could occur. Identification as a Repeat Finding Not a repeat finding. Questioned Costs None. Recommendation The award agreement requires that the Organization shall include in all of its procurement and nonprocurement contracts and agreements, between the Organization and an individual or entity receiving any portion of the CDFI RRP Assistance, a representation that such individual or entity is not currently debarred, suspended, excluded or disqualified by any Federal department or agency. We recommend procedures be implemented to include the review of agreements to determine that this required representation is included. View of Responsible Officials and Planned Corrective Action See corrective action plan.