Finding 638153 (2022-001)

-
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.

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