Finding 396144 (2023-001)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2024-05-08

Audit: 305745

Organization: Natco Credit Union (IN)

Auditor: Doeren Mayhew

AI Summary

Core Issue: Some loans included in our sample were not eligible under the CDFI Rapid Response Program grant agreement.
Trend: Out of 40 loans tested, 4 were found to be outside the eligible target market.
Recommended Follow-up: Review the selection process for loans to ensure compliance with eligibility criteria.

Finding Text

During our audit, we determined the population of loans provided for sampling purposes to include loans not eligible under the CDFI Rapid Response Program grant agreement. As a result, we noted four (4) loans of the forty (40) selected for testing, to be outside of the eligible target market. See below for loans selected which did not meet eligibility: 1. ***6039 2. ***1431 3. ***7204 4. ***6451

Corrective Action Plan

Management understands the need for implementing processes and procedures regarding the monitoring and reporting of eligible loans to ensure they are in accordance with the proper reporting framework.

Other Findings in this Audit

396145 2023-002

Material Weakness
972586 2023-001

Material Weakness
972587 2023-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
21.024	Community Development Financial Institutions Rapid Response Program (cdfi Rrp)	$1.58M
21.033	Cdfi Equitable Recovery Program	$826,279
21.020	Community Development Financial Institutions Program	$325,000