FAC Explorer

Finding 11666 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-05
Audit: 15502
Organization: Community Development Corporation of Utah (UT)
Auditor: Tanner LLC

AI Summary

  • Core Issue: A federal loan was not reported on the Schedule of Expenditures of Federal Awards.
  • Impacted Requirements: Compliance with federal regulations requiring all loans to be included in the reporting schedule.
  • Recommended Follow-Up: Implement policies to ensure all loans are reviewed and reported accurately in future schedules.

Finding Text

Program Name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Criteria: Federal loans are required to be reported on the Schedule of Expenditures of Federal Awards. (Section 200.502(b) of 2 CFR Part 200). Condition: The Organization had a federal loan that was not originally included on the Organization’s Schedule of Expenditures of Federal Awards. Cause of Condition: The Organization failed to properly identify the loan as needing to be reflected on the Schedule of Expenditures of Federal Awards. Potential Effect of Condition: The Organization’s federal loan not being included in the audited Schedule of Expenditures of Federal Awards. Recommendation: The Organization should establish policies and procedures to carefully review loans and consider whether they should be included on the Schedule of Expenditures of Federal Awards. Views of Responsible Officials: Management has acknowledged that this should be included in the Schedule of Expenditures of Federal Awards and will include it as required in any applicable year.

Corrective Action Plan

Program Name: 21.027 Coronavirus State and Local Fiscal Recovery Funds Corrective Action #1 ‐ CDCU will implement federal grant and loan management policies and procedures and provide training to staff responsible for completing the Schedule of Expenditure of Federal Awards (SEFA) to ensure all federal grants and loans are included in the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). Response Responsible Parties – The CFO will draft the federal grant and loan management policy and procedures which will be reviewed and approved by the Board of Directors. Corrective Action #2: CDCU will create and maintain a repository (electronic file) of relevant federal grant and loan information that contains key information relating to each federal program to assist in preparing the SEFA (pursuant to Section 200.502(b) of 2 CFR Part 200). Response Responsible Parties – The Finance Manager will update federal grant and loan information in the electronic repository. Repository will be reviewed quarterly by the CFO and reviewed and approved by the CEO.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 11667 2023-002
    Significant Deficiency
  • 588108 2023-001
    Significant Deficiency
  • 588109 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.026 Homeowner Assistance Fund $12.04M
21.027 Coronavirus State and Local Fiscal Recovery Funds $500,000
14.239 Home Investment Partnerships Program $210,000
21.020 Community Development Financial Institutions Program $100,000
14.218 Community Development Block Grants/entitlement Grants $2,043