Finding Text
Federal Program: Capital Magnet Fund (CMF) – Assistance Listing #21.011 - Award
#181CM050456; Passed through the Community Development Financial
Institutions.
Criteria: Pursuant to the terms of the grant agreement and in accordance with
compliance requirements of Uniform Guidance, program income in
the form of principal and equity repayments of the CMF Award earned
during the Investment Period must be reinvested by the Corporation. The
program income must be committed within twelve months of the end of the
Corporation’s fiscal year in which the Corporation received the program
income.
Condition /Context: As of August 31, 2023, the Corporation had not fully committed the program
income that was received within the prior fiscal year.
Questioned Costs: None
Effect: Noncompliance with the Program Income requirements under Uniform
Guidance.
Cause: In order for the Corporation to commit funds with developers, the
development projects much meet specific CMF grant qualifications. The
Corporation was not able to fully commit the program income funds by the
deadline, as the Corporation was still locating development projects that met
all the CMF grant qualifications.
Recommendations: The Corporation should obtain an extension on the program income deadline
from the granting agency, if possible, when the Corporation is unable to
commit to development projects due to timing and CMF grant requirements.
Views of Responsible
Officials and Planned
Corrective Actions: See Schedule of Corrective Action Plan