Finding 46526 (2022-001)

Significant Deficiency
Requirement
GL
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 46656
Organization: Accompany Capital, Inc. (NY)
Auditor: Sax LLP

AI Summary

  • Core Issue: The organization failed to support and reconcile performance goals in Annual Performance Reports with actual loan and financial data.
  • Impacted Requirements: Internal controls were inadequate, risking non-compliance with federal award terms and performance goals.
  • Recommended Follow-up: Implement control procedures to ensure accurate reconciliation of reported data with underlying financial records.

Finding Text

2022-001 ? Reporting, Level of Effort, and Earmarking Program: AL # 21.024 ? Community Development Financial Institutions Rapid Response Program (CDFI RRP) Sponsor Award Number: 21RRP057316 Sponsor Agency: U.S. Department of Treasury Criteria: Non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that they can manage the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The Organization must meet and report on certain performance goals as outlined in the Grant Assistance Agreement. Condition: Data elements including performance goals as reported on the Annual Performance Reports were originally unable to be supported or reconciled by the organization to the underlying loan and financial data. Cause: Internal controls did not exist to reconcile the data elements as reported on the Annual Performance Reports to the underlying loan and financial data. Effect: Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Questioned Costs: None. There were no instances of non-compliance noted. Context: Data elements as reported in the Annual Performance Reports were unable to be supported. Repeat Finding: No Recommendation: Establish control procedures to reconcile data elements reported to the underlying loan and financial data. Views of Responsible Officials: See Corrective Action Plan attached.

Corrective Action Plan

Finding: 2022-001 ? Reporting Program: AL # 21.024 ? Community Development Financial Institutions Rapid Response Program (CDFI RRP) Sponsor Award Number: 21RRP057316 Sponsor Agency: U.S. Department of Treasury Corrective Action Plan: To address the internal control issue noted, the Director of Finance & Administration and financial consultants will create reports from the loan servicing systems and general ledger and reconcile to the amounts reported on the Annual Performance Reports. The reconciliation and underlying reports will be provided to the Executive Director to review and approve prior to submitting the Annual Performance Reports.

Categories

Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 622968 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.74M
59.046 Microloan Program $1.25M
21.020 Community Development Financial Institutions Program $676,530
93.576 Refugee and Entrant Assistance_discretionary Grants $250,000