Finding 374486 (2022-001)

Criteria – Eligible loans meeting an established threshold (performance goal) as outlined in the Grant Assistance Agreement are to be deployed within the target market (TM). Condition – Total financial products (loans) deployed in the designated target market as reported on the Annual Performance Report were originally unable to be reconciled by the Credit Union to specific underlying loan applications in a timely manner. Questioned Costs – None Effect – Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause – Internal controls did not exist to provide supporting data for eligible loans at origination date or provide for reconciliation of the deployments to the total amount of financial products closed as reported on the Annual Performance Reports in a timely manner. Recommendation – Ensure control procedures are in place to provide supporting data for eligible loans deployed during a grant performance period and reconciled totals to the underlying loan data in a timely manner. Views of responsible officials and planned corrective actions – Management agrees with the finding and has established procedures to provide timely support for identify eligible loans deployed in the TM. Reports tracking these loans will be reconciled to the total financial products closed reported on future Annual Performance Reports.