Finding 3993 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-12-12
Audit: 6300
Organization: Resource One Credit Union (TX)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Credit Union reported an incorrect cumulative award amount in the 2022 Use of Awards Report.
  • Impacted Requirements: This finding relates to reporting standards outlined in 2 CFR sections 200.328 and 200.329.
  • Recommended Follow-Up: Management should enhance controls over federal grant reporting to ensure accuracy and completeness in future submissions.

Finding Text

Community Development Financial Institutions Rapid Response Program (CDFI RRP), Assistance Listing Number: 21.024 U.S. Department of the Treasury Program Year 2022 Criteria or specific requirement – Reporting (2 CFR section 200.328 and 200.329) Condition – The Credit Union reported the incorrect amount of cumulative awards expended in the 2022 Use of Awards Report. Cause – The Credit Union’s controls did not ensure the proper amounts were reported. Effect – The Credit Union reported the incorrect amount of awards expended during 2022. Questioned costs – N/A Context – The Credit Union is required to submit three reports for the year ended December 31, 2022. All of the required reports were tested. The 2022 Use of Awards report reported $828,265 as the cumulative use of award, rather than the actual total cumulative use of $1,826,265 that was actually expended during the year. Identification as a repeat finding, if applicable – N/A Recommendation – Management should review and update controls over federal grant reporting to ensure reports are prepared using complete and accurate information. Views of responsible officials and planned corrective actions – The input error was corrected prior to end of the audit. The credit union's CDFI analyst was contacted by the Chief Strategic Officer and the analyst opened the data field for editing in the AMIS system. The Chief Strategic Officer made the correction in the AMIS system and submitted the corrected information. The Chief Strategic Officer has assigned CDFI reporting responsibilities to the Director of Strategy. Future submissions will be performed by the Director of Strategy and reviewed by the Chief Strategic Officer prior to submission.

Corrective Action Plan

The input error was corrected prior to end of the audit. The credit union's CDFI analyst was contacted by the Chief Strategic Officer and the analyst opened the data field for editing in the AMIS system. The Chief Strategic Officer made the correction in the AMIS system and submitted the corrected information. The Chief Strategic Officer has assigned CDFI reporting responsibiities to the Director of Strategy. Future submissions will be performed by the Director of Strategy and reviewed by the Chief Strategic Officer prior to submission. Executive Responsible - Brady Popp, Chief Strategy Officer Projected Completion Date - Completed prior to the close of the audit

Categories

Reporting

Other Findings in this Audit

  • 580435 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.83M