Finding 11667 (2023-002)

Significant Deficiency

Requirement

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 reporting criteria (2 CFR Part 200, Section 200.502(b)).
Recommended Follow-Up: Implement policies to ensure all loans are reviewed and included in future reports.

Finding Text

Program Name: 14.239 Home Investment Partnership Program 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: 14.239 Home Investment Partnership Program 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.

Other Findings in this Audit

11666 2023-001

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