Finding 61710 (2022-001)

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Requirement
H
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: UMEZ failed to close the required financial products by the end of year 1, missing the 50% target of CDFI assistance.
  • Impacted Requirements: Compliance with the grant agreement's performance obligations was not achieved due to staff turnover in the underwriting department.
  • Recommended Follow-Up: Implement measures to ensure all financial goals are met in the next performance period.

Finding Text

Criteria ? In accordance with the grant agreement, at the end of each year of the period of performance, UMEZ must have closed financial products in an eligible market and/or UMEZ?s approved target market in an amount equal to or greater than 50% of the total CDFI assistance amount by the end of year 1 of the period of performance, June 30, 2022. Condition ? The period of performance compliance requirement related to close of financial products was not met. Cause ? UMEZ did not meet prescribed performance obligations due to staff turnover within the underwriting department. Effect ? This results in UMEZ needing to close more financial products in the next period of performance year. Questioned Costs ? None noted. Context - Sample of all financial products closed during the first year of the period of performance. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? We recommend that adequate measures be taken to make sure that all financial goals are met within the prescribed period of performance. Views of Responsible Officials ? See management?s corrective action plan.

Corrective Action Plan

See Corrective Action Plan

Categories

Period of Performance

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.244 Empowerment Zone Program $6.90M
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.50M