FAC Explorer

Finding 396145 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-05-08
Audit: 305745
Organization: Natco Credit Union (IN)
Auditor: Doeren Mayhew

AI Summary

  • Issue: One loan out of forty tested was found ineligible under the CDFI Equitable Recovery Program grant agreement.
  • Trend: This indicates a potential pattern of including loans that do not meet eligibility criteria.
  • Follow-up: Review loan selection processes to ensure compliance with eligibility requirements moving forward.

Finding Text

During our audit, we determined the population of loans provided for sampling purposes to include loans not eligible under the CDFI Equitable Recovery Program grant agreement. As a result, we noted one (1) loan 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. ***1816

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.

Categories

Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 396144 2023-001
    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