Finding Text
Finding No. 2023-001: Late Submission of MRF LLRF Report – (59.046) – Significant
Deficiency
Criteria
Compliance with Small Business Administration’s (SBA) Microloan Program, as stipulated by SOP 52 00B, requires Periodic Loan Reports. Intermediaries must prepare and submit Microloan Revolving Fund (MRF) and Loan Loss Reserve Fund (LLRF) reports within 30 days of the end of each quarter.
Condition and Context
Per Mitchell Titus review of the report for the quarter ended December 31, 2023, it was evident that Wacif failed to adhere to the stipulations in SOP 52 00B. We noted that SBA initiated contact with Wacif on February 9, 2024, to indicate that the reports were past due. Wacif submitted the report on February 12, 2024, 13 days after the deadline.
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Cause
Wacif’s Lending Department was going through a transition; there was turnover in the lending reporting staff and the onboarded individual was yet to be acclimatized with reports due.
Effect
Lack of timely reporting may trigger negative consequences from SBA with the current and or future grants. Failure to complete the reporting on time may result in additional noncompliance with the Microloan Program.
Questions Cost
None.
Repeated Finding
No.
Recommendation
We recommend that the Lending Department ensure their staff is fully trained and accountable to ensure timely preparation and reporting within the allowable SBA deadline.
Action Taken
The Lending Department has recently onboarded a new Lending Operations Manager as well as a Lending Operations Analyst with the primary responsibility of submitting timely reports to the SBA and others. These individuals do not have client-facing responsibilities and are solely focused on the internal lending operations. Employee goal setting for FY2024 will include the timely report submission.
Anticipated Completion Date: March 31, 2024
If there are any questions regarding this plan, please call Kevin Fryatt, Co-Interim CEO and Chief Financial & Operations Officer (CFOO) at 202-516-1156.