Finding 1219084 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-06-26
Audit: 405063
Organization: First Financial Credit Union (NM)

AI Summary

  • Core Issue: First Financial Credit Union lacks written policies and procedures for managing its federal grant program.
  • Impacted Requirements: This oversight violates Section 5.1 of the grant agreement and 2 CFR Part 200, which stress the importance of effective internal controls.
  • Recommended Follow-Up: The Credit Union should develop and implement necessary policies to comply with federal grant management requirements.

Finding Text

Criteria: Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards (Uniform Guidance (UG) Administrative Requirements). UG administrative requirements puts emphasis on written policies and procedures as central in its objective to maintain e􀇅ective internal controls over federal awards. Condition: First Financial Credit Union did not develop written policies and procedures relating to the administration of its federal grant program. Effect or potential effect: Lack of written policies could result in deficiencies relating to accountability, transparency or improper use of federal grant funds. Recommendation: We recommend the Credit Union establish policies and procedures for its federal grant programs required by UG Administrative Requirements.

Corrective Action Plan

Management agrees with the finding. Policies and procedures as described above will be established and implemented during the current year.

Categories

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $1.11M