Finding 2023-001
other matters
- Program
- CAPITAL MAGNET FUND (21.011)
- Compliance requirement
- Program income
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
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