WASHINGTON AREA COMMUNITY INVESTMENT FUND, INC.Non-Profit

Finding No. 2023-001: Late Submission of MRF LLRF Report – (59.046) – Significant Deficiency Criteria Compliance with Small Business Administration’s (SBA) Microloan Program, as stipulated by SOP 52 00B, requires Periodic Loan Reports. Intermediaries must prepare and submit Microloan Revolving Fund (MRF) and Loan Loss Reserve Fund (LLRF) reports within 30 days of the end of each quarter. Condition and Context Per Mitchell Titus review of the report for the quarter ended December 31, 2023, it was evident that Wacif failed to adhere to the stipulations in SOP 52 00B. We noted that SBA initiated contact with Wacif on February 9, 2024, to indicate that the reports were past due. Wacif submitted the report on February 12, 2024, 13 days after the deadline. 11 Cause Wacif’s Lending Department was going through a transition; there was turnover in the lending reporting staff and the onboarded individual was yet to be acclimatized with reports due. Effect Lack of timely reporting may trigger negative consequences from SBA with the current and or future grants. Failure to complete the reporting on time may result in additional noncompliance with the Microloan Program. Questions Cost None. Repeated Finding No. Recommendation We recommend that the Lending Department ensure their staff is fully trained and accountable to ensure timely preparation and reporting within the allowable SBA deadline. Action Taken The Lending Department has recently onboarded a new Lending Operations Manager as well as a Lending Operations Analyst with the primary responsibility of submitting timely reports to the SBA and others. These individuals do not have client-facing responsibilities and are solely focused on the internal lending operations. Employee goal setting for FY2024 will include the timely report submission. Anticipated Completion Date: March 31, 2024 If there are any questions regarding this plan, please call Kevin Fryatt, Co-Interim CEO and Chief Financial & Operations Officer (CFOO) at 202-516-1156.

Finding No. 2020-002: Significant Deficiency ? Filing of the Quarterly Data and Performance Reports U.S. Department of Housing and Urban Development, Pass through from the District of Columbia Department of Housing and Community Development (DHCD) Community Development Block Grants/Entitlement Grants Cluster ? CDFA No. 14.218; Grant Award Numbers 2019-40 and 2020-75, Year ended December 31, 2020 Condition The quarterly data and performance reports for the year ended December 31, 2020, were not submitted to DHCD by the due date. Context The quarterly data and performance report for the period January 1 to March 31, 2020 was due to DHCD on April 10, 2020, but was submitted on April 15, 2020. The quarterly data and performance report for the period July 1 to September 30, 2020 was due to DHCD on October 10, 2020, but was submitted on December 12, 2020. Criteria The DHCD grant agreement requires that the quarterly data and performance report be submitted no later than the tenth day of the month following the end of each quarterly reporting period. Cause Deficiencies in Wacif?s tracking system and procedures for tracking deadlines for reporting. This was further impacted by staff turnover and moving to remote operations due to the COVID-19 pandemic. Effect Management was not in compliance with the requirement of the grant agreements. Questioned Cost None. Repeat Finding No. Recommendation We recommend that management implement procedures to ensure that the quarterly data and performance reports are completed and submitted within the established due date required by the awarding agency. Views of Responsible Officials and Planned Corrective Action: See corrective action plan.

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