Finding 1165691 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-19
Audit: 376420
Organization: Priority Trust Credit Union (TX)

AI Summary

  • Core Issue: The Credit Union submitted its Financial Statement Audit report 36 days late, violating grant agreement requirements.
  • Impacted Requirements: Timely submission of reports as outlined in Section A of the grant agreement is crucial to avoid increased scrutiny from the CDFI.
  • Recommended Follow-Up: Implement a tracking procedure for reporting deadlines to ensure all future submissions are on time.

Finding Text

Finding 2025-004: Compliance Finding & Significant Deficiency: Reporting Criteria: Section A of the grant agreement, Annual Reports, requires that a Financial Statement Audit (FSA) Report be submitted to the CDFI through AMIS. For the Credit Union’s fiscal year ending March 31, 2025, the FSA was due September 30, 2025. Condition: Priority Trust Credit Union filed the report on November 5, 2025, 36 days after the due date. Effect or potential effect: Late submission of the CDFI grant’s required reports may increase scrutiny by the CDFI over the Credit Union’s grant administration. This may result in losing future funding or potential repayment grant funds. Recommendation: We recommend the Credit Union establish a procedure to track reporting due dates and ensure all of the reporting as required by the grant agreement are filed timely. Questioned costs: None. Views of responsible o􀇆cials: Management agrees with the finding. A process as described above will be established and implemented during the current year.

Corrective Action Plan

Management agrees with the finding and will establish the recommended procedure outlined in the Schedule of Findings and Questioned Costs.

Categories

Reporting Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.033 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND EQUITABLE RECOVERY PROGRAM (CDFI ERP) $861,000