Finding 484742 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-08-21

AI Summary

  • Core Issue: The Northwest Side Community Development Corporation inaccurately reported information on its Transaction Level Report and Uses of Award reports for 2022 and 2023.
  • Impacted Requirements: Compliance with reporting requirements for federal grants was not met, leading to significant deficiencies in internal controls.
  • Recommended Follow-Up: Implement procedures to ensure thorough review and retention of supporting documentation before report submission.

Finding Text

Finding 2023-001 Repeat Finding: No Program Name: Community Development Financial Institutions Grants Federal Agency: U.S. Department of the Treasury Questioned Costs: N/A Type of finding: Significant deficiency in internal controls Compliance Requirement: Reporting Condition: Northwest Side Community Development Corporation did not accurately report certain information on its Transaction Level Report (TLR) for the year ended December 31, 2022 and Uses of Award reports for the year ended December 31, 2023. Criteria: Northwest Side Community Development Corporation is required to file are required to file various reports as part of the grant requirements. Cause: Certain information was not properly gathered and reported on the the TLR and Uses of Awards reports. Effect: The reports needed to be amended in order to properly report certain items on the TLR and Uses of Awards reports. Recommendation: We recommend that precedures are put in place so information reported on the various reports is reviewed and support is retained prior to submission of the reports. View of Responsible Officials: Management has committed to a corrective action plan to ensure information reported is accurate.

Corrective Action Plan

Finding 2023-001: Reporting Condition Northwest Side Community Development Corporation did not accurately report certain information on its Transaction Level Report (TLR) and Uses of Award reports for the year ended December 31, 2022. Corrective Action Plan For the TLR: The Senior Business Lender and/or Loan Portfolio Specialist will assemble required business loan details and client demographic and business financial documentation. The Grants Coordinator will input TLR data points into the CDFI AMIS reporting system. The Director of Fund Development and/or Operations Manager will verify and validate the data inputs in AMIS and compare the values found on original documents (materials in client loan application files). The Director of Fund Development will submit the TLR in AMIS. The Senior Business Lender and Operations Manager will review that all supporting documents in client loan files are saved and organized for future review. For Uses of Award Reports: The Grants Coordinator will request annual expenditure reports from the CFO for each active CDFI award. The Grants Coordinator will input the expenses into the Uses of Award reports in the CDFI AMIS reporting system for each active CDFI grant. After the fiscal year accounting is completed, the CFO will determine the amount of interest earned by CDFI grant funds held in interest-bearing accounts (prior to loan deployment or expenditure). If greater than $500 interest was earned on CDFI grant funds in NWSCDC interest-bearing accounts during the just-completed fiscal year, the CFO will notify the Director of Fund Development and Office Administrator of the amount. The Director of Fund Development will submit written request to the Office Administrator to remit the required payment to HHS as described in the CDFI grant agreement. The Office Administrator will generate a check, through the usual payment approval process. Following this, the Director of Fund Development will review and verify the data inputs and submit the Uses of Award Report(s) in AMIS. The accounting system will retain the financial records for Uses of Award reporting. Person(s) Responsible Senior Business Lender, Loan Portfolio Specialist, Operations Manager, Grants Coordinator, Director of Fund Development, CFO, and Office Administrator. Timing for Implementation This policy is in effect when approved by the Executive Director. The above-named staff have already begun following this procedure for the revision of recent TLR and Use of Award reports and preparation of current reports in May and June 2024. The Grants Coordinator position was filled on April 1, 2024.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1061184 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.04M
21.020 Community Development Financial Institutions Program $694,472
93.570 Community Services Block Grant_discretionary Awards $233,732
45.024 Promotion of the Arts_grants to Organizations and Individuals $17,112