FAC Explorer

Audit 304607

FY End
2023-12-31
Total Expended
$5.04M
Findings
2
Programs
7
Organization: Washington Area Community Investment Fund, Inc. (DC)
Year: 2023 Accepted: 2024-04-26
Auditor: Mitchell Titus LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394750 2023-001 Significant Deficiency - L
971192 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.80M Yes 0
59.046 Microloan Program $1.02M Yes 1
21.033 Cdfi Fund - Erp Award $728,315 - 0
11.805 Mbda Business Center $516,944 - 0
59.050 Prime Technical Assistance $207,883 - 0
21.020 Community Development Financial Institutions Program $36,105 - 0
14.218 Community Development Block Grants/entitlement Grants $35,287 - 0

Contacts

Name Title Type
S6MSQBRZ3KT8 Kevin Fryatt Auditee
2025161156 Paul Geraty Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the SEFA 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: Wacif has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of Wacif under programs of the federal government for the year ended December 31, 2023. The information on the SEFA 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 SEFA presents only a selected portion of the operations of Wacif, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Wacif.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the SEFA 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: Wacif has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the SEFA 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.
Title: INDIRECT COST RATE Accounting Policies: Expenditures reported on the SEFA 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: Wacif has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Wacif has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: LOAN PROGRAM Accounting Policies: Expenditures reported on the SEFA 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: Wacif has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Loan balances outstanding from its Microloan Program (ALN # 59.046) with the Small Business Administration as of December 31, 2023, totaled $420,695.

Finding Details

Finding 2023-001
Finding No. 2023-001: Late Submission of MRF LLRF Report – (59.046) – Significant Deficiency Criteria Compliance with Small Business Administration’s (SBA) Microloan Program, as stipulated by SOP 52 00B, requires Periodic Loan Reports. Intermediaries must prepare and submit Microloan Revolving Fund (MRF) and Loan Loss Reserve Fund (LLRF) reports within 30 days of the end of each quarter. Condition and Context Per Mitchell Titus review of the report for the quarter ended December 31, 2023, it was evident that Wacif failed to adhere to the stipulations in SOP 52 00B. We noted that SBA initiated contact with Wacif on February 9, 2024, to indicate that the reports were past due. Wacif submitted the report on February 12, 2024, 13 days after the deadline. 11 Cause Wacif’s Lending Department was going through a transition; there was turnover in the lending reporting staff and the onboarded individual was yet to be acclimatized with reports due. Effect Lack of timely reporting may trigger negative consequences from SBA with the current and or future grants. Failure to complete the reporting on time may result in additional noncompliance with the Microloan Program. Questions Cost None. Repeated Finding No. Recommendation We recommend that the Lending Department ensure their staff is fully trained and accountable to ensure timely preparation and reporting within the allowable SBA deadline. Action Taken The Lending Department has recently onboarded a new Lending Operations Manager as well as a Lending Operations Analyst with the primary responsibility of submitting timely reports to the SBA and others. These individuals do not have client-facing responsibilities and are solely focused on the internal lending operations. Employee goal setting for FY2024 will include the timely report submission. Anticipated Completion Date: March 31, 2024 If there are any questions regarding this plan, please call Kevin Fryatt, Co-Interim CEO and Chief Financial & Operations Officer (CFOO) at 202-516-1156.
Finding 2023-001
Finding No. 2023-001: Late Submission of MRF LLRF Report – (59.046) – Significant Deficiency Criteria Compliance with Small Business Administration’s (SBA) Microloan Program, as stipulated by SOP 52 00B, requires Periodic Loan Reports. Intermediaries must prepare and submit Microloan Revolving Fund (MRF) and Loan Loss Reserve Fund (LLRF) reports within 30 days of the end of each quarter. Condition and Context Per Mitchell Titus review of the report for the quarter ended December 31, 2023, it was evident that Wacif failed to adhere to the stipulations in SOP 52 00B. We noted that SBA initiated contact with Wacif on February 9, 2024, to indicate that the reports were past due. Wacif submitted the report on February 12, 2024, 13 days after the deadline. 11 Cause Wacif’s Lending Department was going through a transition; there was turnover in the lending reporting staff and the onboarded individual was yet to be acclimatized with reports due. Effect Lack of timely reporting may trigger negative consequences from SBA with the current and or future grants. Failure to complete the reporting on time may result in additional noncompliance with the Microloan Program. Questions Cost None. Repeated Finding No. Recommendation We recommend that the Lending Department ensure their staff is fully trained and accountable to ensure timely preparation and reporting within the allowable SBA deadline. Action Taken The Lending Department has recently onboarded a new Lending Operations Manager as well as a Lending Operations Analyst with the primary responsibility of submitting timely reports to the SBA and others. These individuals do not have client-facing responsibilities and are solely focused on the internal lending operations. Employee goal setting for FY2024 will include the timely report submission. Anticipated Completion Date: March 31, 2024 If there are any questions regarding this plan, please call Kevin Fryatt, Co-Interim CEO and Chief Financial & Operations Officer (CFOO) at 202-516-1156.