FAC Explorer

Finding 42731 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-08-28
Audit: 48288
Organization: Florida Agricultural & Mechanical University Federal Credit Union (FL)
Auditor: Nearman Maynard Vallez CPAS P A

AI Summary

  • Issue: The Credit Union recognized the entire grant amount upfront instead of when loans are granted.
  • Impacted Requirement: Grant income should align with the timing specified in the grant agreement.
  • Recommended Follow-Up: Adjust accounting practices to recognize grant income upon loan disbursement.

Finding Text

A. SCHEDULE OF FINDINGS 2022-001: During our review of grant income recognized related to the pass through grant 21.019 Coronavirus Relief Fund, we noted the Credit Union recognized the entire grant amount when received and did not recognize it in accordance with the grant agreement. The grant was awarded to grant loans to minority and women owned businesses in Leon County, Florida. The Credit Union should be recognizing the grant income when they grant loans.

Corrective Action Plan

B. CORRECTIVE ACTION Credit Union will be recognizing grant revenue in conjunction with the loans granted in the future.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.27M
21.019 Coronavirus Relief Fund $1.00M