Finding Text
SECTION II - FINDINGS - FINANCIAL STATEMENTS AUDIT No matters were reported SECTION III ? FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-001: Debarred, suspended, excluded, or disqualified individual or entity Federal Department: Department of the Treasury Assistance Listing #: 21.020 Internal Controls Material Weakness Category of Finding ? Procurement, Suspension, and Debarment Criteria - The CDFI grant agreements require that One Roof determine whether any individual or entity receiving any portion of assistance is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and report any funds awarded to these individuals or entities to CDFI within 30 days. Condition - One Roof currently does not perform any procedures to determine if a person or entity receiving any assistance is currently debarred or suspended. Context - We tested 4 loans funded using CDFI funds during the audit. The results of our testing indicated that none of these 4 loans were given to debarred or suspended individuals or entities. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of CDFI assistance to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of assistance received by One Roof and render One Roof ineligible to apply for additional assistance from CDFI in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently suspended or debarred, and to report the results to CDFI in a timely manner. Auditee?s comments and response - One Roof is in the process of updating policies to include a process to determine if individuals or entities that apply for loans are debarred or suspended. Responsible party for corrective action: Jackie Kemp, Senior Director - Housing Programs