Finding Text
SECTION III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SIGNIFICANT DEFICIENCY 2022-001 CDFI Program ? CFDA No. 21.024; Grant Nos. 21RRP057469: Grant period ? December 31, 2022. Condition: The Credit Union has contracted with a third-party vendor named, Inclusiv, for CDFI reporting purposes. According to Inclusiv?s reporting, the Credit Union met the total financial products (loans) deployed in the designated target market (TM) requirement as reported on the Annual Performance Report. From our testing, we were also able to support the Credit Union satisfied the requirements. However, based on the reports provided by Inclusiv, we were unable to obtain a list of identifiable loans that met the eligibility requirements. Criteria: Eligible loans meeting an established threshold (performance goal) as outlined in the Grant Assistance Agreement are to be deployed within the TM. Questioned Costs: None Context: Eligible loan deployment as reported in the Annual Performance Reports were unable to be supported on an individual basis outside of Inclusiv?s reporting at this time. Effect: Performance goals as stipulated in the Grant Assistance Agreement may not be met or reported inaccurately. Cause: There was no way to identify eligible loans deployed or reconcile the deployments to the total amount of financial products closed as reported on the Annual Performance Reports. Recommendation: Complete established procedures to identify and track eligible loans deployed during the RRP grant performance period and reconcile the totals to the underlying loan data. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will ensure we are able to identify eligible loans deployed in the TM in the future.