Finding 496676 (2022-008)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2024-09-12

AI Summary

  • Answer: Internal control weaknesses were identified during the audit.
  • Trend: These deficiencies could lead to increased risk of financial misstatements.
  • List: Recommend reviewing and strengthening internal controls to mitigate risks.

Finding Text

Deficiencies in internal control were noted during the financial statement audit process.

Corrective Action Plan

The Organization notes this was a result of former management that did not properly follow Organization processes and procedures. Former management has been replaced by a new management team. The new team has placed a significant emphasis on transparency and enhanced controls. To this end, the Organization is establishing an Audit Committee, which will consist of three (3) to five (5) members with one member being from the Board of Directors and all other members being volunteers from the banking or financial industry. The Audit Committee will promote greater internal controls and independence in oversight from the Board of Directors.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 496675 2022-007
    Material Weakness
  • 1073117 2022-007
    Material Weakness
  • 1073118 2022-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $935,000