Finding 1153794 (2024-001)

Finding 2024-001: Compliance Finding & Material Weakness - Reporting Criteria: Section A of the grant agreement outlines the annual reports required to be submitted by Dade County Federal Credit Union (the Credit Union) to the CDFI which includes the Performance Progress Report (PPR) and the Use of Awards Report (UOA). Section 2A of the grant agreement requires that the Credit Union expend its CDFI ERP Award in eligible activities including program activities, financial services and development services, and operational support activities. Condition: For the year ended December 31, 2024 we noted that the amounts reported on the PPR and UOA reports for the various goals and measures outlined in the grant agreement did not agree with the accounting records and did not reflect the actual amounts expended by the Credit Union. Specifically for Year 1 of the Period of Performance (April 10, 2023 – December 31, 2024): 1. The amounts reported on the PPR and UOA reports were $129,600 for operational activities (professional services and travel costs), $3,000 for development services, and $1,275,000 for program activities (grants and loan loss reserves). 2. The amounts reflected in the accounting records were $100,000 for operational activities, $2,000 for development services, and $1,025,000 for program activities. 3. During the audit, management noted the actual expenditures should have been $54,600 for operational activities, $3,000 for development services and $1,025,000 for program activities. The differences noted above primarily relate to:  A total of $250,000 of federal expenditures was reported as being used for loan loss reserves on the UOA and PPR reports. However, there were no federal expenditures used for loan loss reserves during the period of performance.  A total of $125,000 was reported for professional services, however the actual amount was $50,000. Effect or potential effect: Performance goals as stipulated in the grant agreement may not be met or reported inaccurately. Reporting inaccurate information may increase scrutiny by the CDFI over the Credit Union’s grant administration. This may result in losing future funding or potential repayment of grant funds. Recommendation: Establish control procedures to ensure amounts reported on the PPR and UOA reports agree to actual expenditures and reconcile the amounts reported to the accounting records. Questioned costs: None. Views of responsible o􀇆cials: Management agrees with the finding and will establish the internal control recommendations outlined above. Additionally, the Credit Union has corrected and resubmitted the PPR and UOA reports which were accepted by the CDFI in August 2025.