Finding 25487 (2022-001)

Condition: The Credit Union has contracted with a third-party vendor named CU Strategic Planning for CDFI reporting purposes. According to CU Strategic Planning?s reporting, the Credit Union met the total financial products (loans) deployed in the designated target market (TM) requirement as reported on the Annual Performance Report. From our testing, we were also able to support the Credit Union satisfied the requirements. However, during our testing of eligible loans, we found several loans in our sample that did not meet the eligibility requirements. Criteria: Eligible loans meeting an established threshold (performance goal) as outlined in the Grant Assistance Agreement are to be deployed within the TM. Questioned Costs: None Context: Eligible loan deployment as reported in the Annual Performance Reports were unable to be supported on an individual basis outside of CU Strategic Planning?s reporting at this time. Effect: Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause: A deficiency in internal controls to identify and track eligible loans deployed during the RRP grant performance period. Recommendation: Complete established procedures to identify and track eligible loans deployed during the RRP grant performance period and reconcile the totals to the underlying loan data. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will ensure we are able to identify eligible loans deployed in the TM in the future.