FAC Explorer

Audit 410939

FY End
2025-12-31
Total Expended
$1.22M
Findings
1
Programs
2
Organization: Municipal Employees Credit Union of Baltimore, Inc. (MD)
Year: 2025 Accepted: 2026-09-14
Auditor: DOEREN MAYHEW ASSURANCE PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1229733 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
21.033 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND EQUITABLE RECOVERY PROGRAM (CDFI ERP) $1.19M Yes 1
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $33,000 Yes 0

Contacts

Name Title Type
RG6QQZ4NLNT5 Michael Solomon Auditee
4102234045 Bill Astrab Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Municipal Employees Credit Union of Baltimore, Inc. (the Credit Union) and has been prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of operations of the Credit Union, is not intended to and does not present the financial position, net income, change in members’ equity, or cash flows of the Credit Union.
Expenditure Recognition Expenditures 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. Indirect Cost Rate The Credit Union has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs.

Finding Details

Finding 2025-001
Criteria: The CDFI ERP Assistance Agreement and applicable CDFI Fund reporting instructions require recipients to accurately report program activity and use of award funds through required Performance Progress Reports and Use of Award Reports. Condition: During our testing of the Credit Union’s compliance with the reporting requirements of the CDFI ERP grant, we noted that $400,000 of ERP funds used to fund the allowance for credit losses was not included in the Credit Union’s Performance Progress and Use of Award Reports submitted to the CDFI Fund. The underlying use of the funds was in compliance with the ERP grant; however, the related activity was omitted from the required reporting. Cause: The Credit Union’s review process over federal grant reporting did not identify that the allowance for credit losses activity had been omitted from the required CDFI reports prior to submission. Effect: The reports submitted to the CDFI Fund did not completely reflect the Credit Union’s use of ERP award funds. Although the omitted expenditures were allowable and no questioned costs were identified, the reporting omission resulted in noncompliance with the program’s reporting requirements. Recommendation: We recommend that the Credit Union strengthen its review procedures over federal award reporting to ensure that all reportable uses of grant funds are included in required submissions. Such procedures should include a reconciliation of amounts reported to the CDFI Fund to the Credit Union’s general ledger, grant activity records, and other support prior to submission. Questioned costs: None. Views of responsible officials and planned corrective action: Management agrees with the finding. The Credit Union will enhance its review process over CDFI reporting by performing a documented reconciliation of grant activity prior to submission to the CDFI Fund.