Finding Text
2025-004 MATERIAL WEAKNESS AND NONCOMPLIANCE - REPORTING Information on the Federal Programs: Department of the Treasury - CDFI Fund; ALN 21.033, CDFI Equitable Recovery Program; Award No. 22ERP061695; Award Year 2023; Award Amount $2,478,839; Pass-through: not applicable. Criteria: The CDFI ERP Agreements requires recipients to submit applicable reports within established reporting periods and deadlines. Uniform Guidance requires recipients to maintain effective internal control over federal awards and submit accurate and complete financial and performance reports. Condition and Context: The Credit Union did not submit the required ERP Federal Financial Report (SF-425) to the CDFI Fund for the applicable reporting period. Cause: The Credit Union lacked formal procedures to monitor reporting deadlines and verify the completion, review, and submission of required grant reports. Effect or Potential Effect: Failure to submit required reports may result in noncompliance with award agreements, limit CDFI Fund oversight, and subject the Credit Union to corrective action or additional monitoring. Questioned Costs: None noted ($0). The issue is reporting- and control-related; no direct unallowable cost was identified. Repeat Finding: Yes – ERP Award Recommendation: Management should establish formal grant acceptance and reporting procedures, including a reporting calendar, assigned preparer and reviewer responsibilities, documented supervisory review, reconciliation of reported amounts to supporting records, and verification of timely submission. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. The Credit Union will implement formal grant acceptance and reporting procedures, maintain a reporting calendar, assign preparation and review responsibilities, and document approval and submission of required reports. Management will also evaluate and address outstanding reporting requirements with the CDFI Fund.