FAC Explorer

Audit 38272

FY End
2022-12-31
Total Expended
$1.79M
Findings
2
Programs
2
Organization: River City Federal Credit Union (TX)
Year: 2022 Accepted: 2023-07-31
Auditor: Doeren Mayhew

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42017 2022-001 Significant Deficiency - EG
618459 2022-001 Significant Deficiency - EG

Programs

ALN Program Spent Major Findings
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.11M Yes 1
21.020 Community Development Financial Institutions Program $676,530 - 0

Contacts

Name Title Type
MM5JH76J1739 Michael Quintanilla Auditee
2102256866 Jeanine Labarbera Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1-Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of River City Federal Credit Union (the Credit Union) under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Credit Union, it is not intended to and does not present the income, changes in members equity, or cash flows of the Credit Union.Note 2-Summary of Significant Accounting PoliciesExpenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3-Indirect Cost RateThe Credit Union has elected not to use the 10% de minimums indirect cost rate as allowed under the Uniform Guidance.Note 4-Major ProgramsMajor programs are identified in the Summary of Auditors Results section of the Schedule of Findings and Questioned Costs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2022-001 CDFI Program ? CFDA No. 21.024; Grant Nos. 21RRP057469: Grant period ? December 31, 2022. Condition: The Credit Union has contracted with a third-party vendor named, Inclusiv, for CDFI reporting purposes. According to Inclusiv?s reporting, the Credit Union met the total financial products (loans) deployed in the designated target market (TM) requirement as reported on the Annual Performance Report. From our testing, we were also able to support the Credit Union satisfied the requirements. However, based on the reports provided by Inclusiv, we were unable to obtain a list of identifiable loans that met the eligibility requirements. Criteria: Eligible loans meeting an established threshold (performance goal) as outlined in the Grant Assistance Agreement are to be deployed within the TM. Questioned Costs: None Context: Eligible loan deployment as reported in the Annual Performance Reports were unable to be supported on an individual basis outside of Inclusiv?s reporting at this time. Effect: Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause: There was no way to identify eligible loans deployed or reconcile the deployments to the total amount of financial products closed as reported on the Annual Performance Reports. Recommendation: Complete established procedures to identify and track eligible loans deployed during the RRP grant performance period and reconcile the totals to the underlying loan data. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will ensure we are able to identify eligible loans deployed in the TM in the future.
Finding 2022-001
SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2022-001 CDFI Program ? CFDA No. 21.024; Grant Nos. 21RRP057469: Grant period ? December 31, 2022. Condition: The Credit Union has contracted with a third-party vendor named, Inclusiv, for CDFI reporting purposes. According to Inclusiv?s reporting, the Credit Union met the total financial products (loans) deployed in the designated target market (TM) requirement as reported on the Annual Performance Report. From our testing, we were also able to support the Credit Union satisfied the requirements. However, based on the reports provided by Inclusiv, we were unable to obtain a list of identifiable loans that met the eligibility requirements. Criteria: Eligible loans meeting an established threshold (performance goal) as outlined in the Grant Assistance Agreement are to be deployed within the TM. Questioned Costs: None Context: Eligible loan deployment as reported in the Annual Performance Reports were unable to be supported on an individual basis outside of Inclusiv?s reporting at this time. Effect: Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause: There was no way to identify eligible loans deployed or reconcile the deployments to the total amount of financial products closed as reported on the Annual Performance Reports. Recommendation: Complete established procedures to identify and track eligible loans deployed during the RRP grant performance period and reconcile the totals to the underlying loan data. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will ensure we are able to identify eligible loans deployed in the TM in the future.