Finding 1223281 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-09
Audit: 406780
Organization: Dakota Business Lending (ND)
Auditor: BRADY MARTZ PLLC

AI Summary

  • Core Issue: Semiannual reports for the Federal Programs Intermediary Relending Program were not reviewed before submission.
  • Impacted Requirements: Lack of management oversight could lead to inaccurate or late reporting.
  • Recommended Follow-Up: The Organization should enhance its procedures for report preparation and implement proper supervision controls.

Finding Text

Federal Programs Intermediary Relending Program (10.767) Criteria An appropriate system of internal controls requires the proper supervision over reporting under federal loan programs. Condition During our testing, we noted that the semiannual reports were not being reviewed prior to submission. Cause Management oversight. Effect Required reporting could be submitted inaccurately or late. Questioned Costs None Context We tested 4 of the 8 required semiannual reports noting they did not have documented review and approval. Recommendation We recommend the Organization review its procedures for preparing and submitting reports under federal loan programs. Repeat Finding No View of Responsible Officials The Organization will review its procedures for preparing and submitting reports under federal loan programs and put proper supervision controls in place.

Corrective Action Plan

The Organization will review its procedures for preparing and submitting reports under federal loan programs and put proper supervision controls in place.

Categories

Internal Control / Segregation of Duties Reporting Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
10.767 INTERMEDIARY RELENDING PROGRAM $580,671
59.062 INTERMEDIARY LOAN PROGRAM $463,226
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $114,261