FAC Explorer

Audit 58597

FY End
2022-06-30
Total Expended
$10.45M
Findings
4
Programs
2
Organization: Upper Manhattan Empowerment Zone Development Corporation (NY)
Year: 2022 Accepted: 2023-03-29
Auditor: Mayer Hoffman McCann CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61710 2022-001 - - H
61711 2022-001 - - H
638152 2022-001 - - H
638153 2022-001 - - H

Programs

ALN Program Spent Major Findings
14.244 Empowerment Zone Program $6.90M Yes 0
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.50M Yes 1

Contacts

Name Title Type
HF9WFCCVLXT9 Olatunde Oniyide Auditee
2128762713 Warren Ruppel Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Upper Manhattan Empowerment Zone Development Corporation (UMEZ) under programs of the federal government for the year ended June 30, 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 UMEZ, it is not intended to and does not present the financial position, changes in net assets or cash flows of UMEZ. Expenditures reported on the Schedule 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: The auditee did not use the de minimis cost rate. EMPOWERMENT ZONE PROGRAM (14.244) - Balances outstanding at the end of the audit period were 3191932. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS RAPID RESPONSE PROGRAM (CDFI RRP) (21.024) - Balances outstanding at the end of the audit period were 180000.

Finding Details

Finding 2022-001
Criteria ? In accordance with the grant agreement, at the end of each year of the period of performance, UMEZ must have closed financial products in an eligible market and/or UMEZ?s approved target market in an amount equal to or greater than 50% of the total CDFI assistance amount by the end of year 1 of the period of performance, June 30, 2022. Condition ? The period of performance compliance requirement related to close of financial products was not met. Cause ? UMEZ did not meet prescribed performance obligations due to staff turnover within the underwriting department. Effect ? This results in UMEZ needing to close more financial products in the next period of performance year. Questioned Costs ? None noted. Context - Sample of all financial products closed during the first year of the period of performance. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that adequate measures be taken to make sure that all financial goals are met within the prescribed period of performance. Views of Responsible Officials ? See management?s corrective action plan.
Finding 2022-001
Criteria ? In accordance with the grant agreement, at the end of each year of the period of performance, UMEZ must have closed financial products in an eligible market and/or UMEZ?s approved target market in an amount equal to or greater than 50% of the total CDFI assistance amount by the end of year 1 of the period of performance, June 30, 2022. Condition ? The period of performance compliance requirement related to close of financial products was not met. Cause ? UMEZ did not meet prescribed performance obligations due to staff turnover within the underwriting department. Effect ? This results in UMEZ needing to close more financial products in the next period of performance year. Questioned Costs ? None noted. Context - Sample of all financial products closed during the first year of the period of performance. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that adequate measures be taken to make sure that all financial goals are met within the prescribed period of performance. Views of Responsible Officials ? See management?s corrective action plan.
Finding 2022-001
Criteria ? In accordance with the grant agreement, at the end of each year of the period of performance, UMEZ must have closed financial products in an eligible market and/or UMEZ?s approved target market in an amount equal to or greater than 50% of the total CDFI assistance amount by the end of year 1 of the period of performance, June 30, 2022. Condition ? The period of performance compliance requirement related to close of financial products was not met. Cause ? UMEZ did not meet prescribed performance obligations due to staff turnover within the underwriting department. Effect ? This results in UMEZ needing to close more financial products in the next period of performance year. Questioned Costs ? None noted. Context - Sample of all financial products closed during the first year of the period of performance. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that adequate measures be taken to make sure that all financial goals are met within the prescribed period of performance. Views of Responsible Officials ? See management?s corrective action plan.
Finding 2022-001
Criteria ? In accordance with the grant agreement, at the end of each year of the period of performance, UMEZ must have closed financial products in an eligible market and/or UMEZ?s approved target market in an amount equal to or greater than 50% of the total CDFI assistance amount by the end of year 1 of the period of performance, June 30, 2022. Condition ? The period of performance compliance requirement related to close of financial products was not met. Cause ? UMEZ did not meet prescribed performance obligations due to staff turnover within the underwriting department. Effect ? This results in UMEZ needing to close more financial products in the next period of performance year. Questioned Costs ? None noted. Context - Sample of all financial products closed during the first year of the period of performance. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that adequate measures be taken to make sure that all financial goals are met within the prescribed period of performance. Views of Responsible Officials ? See management?s corrective action plan.