Audit 32547

Finding # 2022-001 Type: : Significant Deficiency over reporting CFDA Number: U.S. Department of Treasury 21.024 Community Development Financial Institutions Rapid Response Program Criteria/Requirement: Annual financial condition reports and performance reports should be prepared, reviewed, and timely submitted to funding agencies. Condition/Context: The three sample selections could not be located. Financial statement audit report was due by December 31, 2021. The report was submitted on July 6, 2022, subsequent to the deadline. Cause: There are no controls in place to monitor completion and document review and submission of the required reports. Effect: Reports may be inaccurate and not submitted timely to agencies. Questioned Costs: None. Recommendation: Proper controls and segregation of duties should be implemented to monitor timely completion and submission of required reports. In addition, there should be a documented review by appropriate personnel of the report data (someone other than the preparer), before submission. Copies of submitted reports should be maintained in a retrievable manner. Management?s Response: Management will implement a supervisory review and approval of all reports as well as develop a process for documenting the review of reports.

Finding # 2022-001 Type: : Significant Deficiency over reporting CFDA Number: U.S. Department of Treasury 21.024 Community Development Financial Institutions Rapid Response Program Criteria/Requirement: Annual financial condition reports and performance reports should be prepared, reviewed, and timely submitted to funding agencies. Condition/Context: The three sample selections could not be located. Financial statement audit report was due by December 31, 2021. The report was submitted on July 6, 2022, subsequent to the deadline. Cause: There are no controls in place to monitor completion and document review and submission of the required reports. Effect: Reports may be inaccurate and not submitted timely to agencies. Questioned Costs: None. Recommendation: Proper controls and segregation of duties should be implemented to monitor timely completion and submission of required reports. In addition, there should be a documented review by appropriate personnel of the report data (someone other than the preparer), before submission. Copies of submitted reports should be maintained in a retrievable manner. Management?s Response: Management will implement a supervisory review and approval of all reports as well as develop a process for documenting the review of reports.