Finding 37136 (2022-001)

SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2022-001 CDFI Program ? CFDA No. 21.024; Grant Nos. 21RRP056344: Grant period ? June 30, 2022. SIGNIFICANT DEFICIENCY Condition: Total financial products (loans) deployed in the designated target market (TM) as Reported on the Annual Performance Report were originally unable to be supported or reconciled by the Credit Union to the underlying loan data. 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. Effect: Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause: Internal controls did not exist to identify and track eligible loans deployed or reconcile the deployments to the total amount of financial products closed as reported on the Annual Performance Reports. Recommendation: Establish control procedures to identify and track eligible loans deployed during a grant performance period and reconcile the totals to the underlying loan date. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and has established procedures to identify eligible loans deployed in the TM. These loans will be reconciled to the total financial products closed reported on future Annual Performance Reports.