Finding 21641 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 27146
Auditor: Doeren Mayhew

AI Summary

  • Core Issue: The Credit Union inaccurately reported federal expenditures in the Use of Award Report, overstating the amount by about $51,000.
  • Impacted Requirements: Accurate reporting of grant awards is essential as per the grant agreement, which was not followed.
  • Recommended Follow-up: Implement a control to reconcile actual grant fund usage with reported amounts to ensure compliance moving forward.

Finding Text

CDFI Program ? CFDA No. 21.024; Grant Nos. 21RRP057045: Grant period ? December 31, 2022. Condition: The Credit Union incorrectly reported the amount of federal expenditures recognized on the Use of Award Report for the year ended December 31, 2022. Criteria: As outlined in the grant agreement, the use of grant awards for a performance period should be accurately reported to the CDFI via the Use of Award report. Questioned Costs: None Context: The amount reported in the Use of Awards Report was overstated by approximately $51,000. Effect: Use of grant funds as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause: There was not a control in place to reconcile the actual amount of the grant funds utilized as reflected in the accounting records to the amount reported in the Use of Awards Report.

Corrective Action Plan

Recommendation: Established a control procedure that reconciles the grant funds utilized as reflected in the accounting records to that being reported on the Use of Awards Report. Action Taken: Management agrees with the finding and will establish the recommended control procedure. The Use of Award report was corrected during the course of the audit.

Categories

Period of Performance

Other Findings in this Audit

  • 21639 2022-000
    Significant Deficiency
  • 21640 2022-001
    Significant Deficiency
  • 598081 2022-000
    Significant Deficiency
  • 598082 2022-001
    Significant Deficiency
  • 598083 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $730,506
21.020 Community Development Financial Institutions Program $125,000