FAC Explorer

Audit 12088

FY End
2023-06-30
Total Expended
$1.42M
Findings
12
Programs
4
Organization: Greater Eastern Oregon Development Corporation (OR)
Year: 2023 Accepted: 2024-01-17
Auditor: Connected Professional Accountants LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8824 2023-003 Material Weakness - B
8825 2023-003 Material Weakness - B
8826 2023-004 Material Weakness - B
8827 2023-004 Material Weakness - B
8828 2023-005 Material Weakness - L
8829 2023-006 Material Weakness - L
585266 2023-003 Material Weakness - B
585267 2023-003 Material Weakness - B
585268 2023-004 Material Weakness - B
585269 2023-004 Material Weakness - B
585270 2023-005 Material Weakness - L
585271 2023-006 Material Weakness - L

Programs

ALN Program Spent Major Findings
11.302 Economic Development_support for Planning Organizations $112,500 - 0
10.767 Intermediary Relending Program $74,200 - 0
11.307 Economic Adjustment Assistance $68,014 Yes 4
10.769 Rural Business Enterprise Grants $18,119 - 0

Contacts

Name Title Type
GAXRTNBHVJD6 Susan Christensen Auditee
5412756745 Yvonne Roberts Auditor
No contacts on file

Notes to SEFA

Title: Note A - Purpose of the Schedule: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards ( the “Schedule” ) is a supplementary schedule to GEODC’s financial statements and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of GEODC, it is not intended to and does not present either the financial position, results of operations, or changes in net assets of the Corporation.
Title: Note B - Significant Accounting Policies: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. Indirect Cost Rate GEODC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note C - EDA CARES Revolving Loan Fund: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. A summary of changes in EDA Revolving Loan Fund balances are as follows: See the Notes to the SEFA for chart/table
Title: Note D - Intermediary Relending Program: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. A summary of changes in the Intermediary Relending Program are as follows: See the Notes to the SEFA for chart/table
Title: Note E - Subsidized Interest: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. Low interest loans are federal financial assistance to the extent of the interest subsidy. Assuming fair value loan rate to be 7%, and knowing the actual loan rate to be 1%, subsidized interest is approximately $74,200.
Title: Note F - Native American Entrepreneur Revolving Loan Fund: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to GEODC’s basic financial statements. The Schedule includes all federal programs administered by the Corporation for the year ended June 30, 2023. Basis of Presentation The accompanying Schedule includes the federal award activity of the GEODC, under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District. Federal Financial Assistance Pursuant to the Single Audit Act and the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between an entity and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and the Uniform Guidance establish criteria to be used in defining major programs. Major programs for GEODC are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Insurance Coverage For fiscal year ended June 30, 2023, the Corporation had insurance coverage in effect comparable to other entities of similar size and circumstance. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate. A summary of changes in the Native American Entrepreneur Revolving Loan Fund are as follows: See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-003
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-03 Material Weakness: Questioned costs were identified within the EDA CARES Planning grant and EDA CARES RLF, $131,986 and $30,865, respectively. $131,986 and $30,865 of federal funds remained unspent at the end of the grant periods and were transferred to the general fund under the assumption unspent funds could be spent in any manner. Criteria: Grant specialists at the Economic Development Administration confirmed all federal funds were to be spent in align with the original Scope of Work and fall within the project period dates. Condition: $162,851 of federal funds were not spent in align with the original Scope of Work and within the project period dates. Cause: GEODC staff did not have adequate knowledge of the EDA CARES Planning grant and EDA CARES RLF that would enable them to identify unallowable costs. Effect: The result is a questioned cost of $162,851 and a compliance violation of requirements pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce and $30,865 was returned to the EDA CARES revolving loan fund cash balance. Recommendation: We recommend $131,986 of federal funding be returned to the US Department of Commerce and $30,865 returned to the EDA CARES revolving loan fund cash balance. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended steps after the issue was identified in the annual audit but before the date of our audit report.
Finding 2023-003
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-03 Material Weakness: Questioned costs were identified within the EDA CARES Planning grant and EDA CARES RLF, $131,986 and $30,865, respectively. $131,986 and $30,865 of federal funds remained unspent at the end of the grant periods and were transferred to the general fund under the assumption unspent funds could be spent in any manner. Criteria: Grant specialists at the Economic Development Administration confirmed all federal funds were to be spent in align with the original Scope of Work and fall within the project period dates. Condition: $162,851 of federal funds were not spent in align with the original Scope of Work and within the project period dates. Cause: GEODC staff did not have adequate knowledge of the EDA CARES Planning grant and EDA CARES RLF that would enable them to identify unallowable costs. Effect: The result is a questioned cost of $162,851 and a compliance violation of requirements pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce and $30,865 was returned to the EDA CARES revolving loan fund cash balance. Recommendation: We recommend $131,986 of federal funding be returned to the US Department of Commerce and $30,865 returned to the EDA CARES revolving loan fund cash balance. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended steps after the issue was identified in the annual audit but before the date of our audit report.
Finding 2023-004
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-04 Material Weakness: Unallowable costs for the EDA Cares Planning Grant and EDA Cares Revolving Loan Fund were not identified in a timely or accurate manner. Criteria: GEODC staff are required to have or obtain adequate knowledge of federal funding program requirements that will allow them to spend funding in accordance with all compliance requirements set forth in grant documents. Condition: Federal funds were not spent in align with the original Scope of Work and within the project period dates specified in the grant documents. Cause: GEODC staff did not have adequately comply with federal funding compliance requirements within their control. Effect: This has resulted in a material weakness in internal control over compliance pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: The grant period has ended for this particular funding but GEODC administers many contracts and grants for which adequate knowledge of funding requirements are needed. Recommendation: We recommend GEODC improve controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve internal controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements.
Finding 2023-004
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-04 Material Weakness: Unallowable costs for the EDA Cares Planning Grant and EDA Cares Revolving Loan Fund were not identified in a timely or accurate manner. Criteria: GEODC staff are required to have or obtain adequate knowledge of federal funding program requirements that will allow them to spend funding in accordance with all compliance requirements set forth in grant documents. Condition: Federal funds were not spent in align with the original Scope of Work and within the project period dates specified in the grant documents. Cause: GEODC staff did not have adequately comply with federal funding compliance requirements within their control. Effect: This has resulted in a material weakness in internal control over compliance pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: The grant period has ended for this particular funding but GEODC administers many contracts and grants for which adequate knowledge of funding requirements are needed. Recommendation: We recommend GEODC improve controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve internal controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements.
Finding 2023-005
U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-05 Material Weakness: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Criteria: All grant reports are required to be submitted timely and agree with supporting financial records. Condition: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Cause: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports and did not have adequate knowledge to complete the reports correctly. Effect: Incorrect reporting led EDA to close the grant without question and results in a questioned cost of $131,986 and a compliance violation of requirements pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce. Recommendation: We recommend unspent federal funds $131,986 be reported and be returned to the US Department of Commerce. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended step after the issue was identified in the annual audit but before the date of our audit report.
Finding 2023-006
U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-06 Material Weakness: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports. The reports did not accruately relfect the grant activity. Criteria: GEODC staff are required to have controls in place to assure grant reports are submitted timely and agree with supporting financial records. Condition: Final reporting of the EDA CARES Planning grant did not agree to supporting financial records. Cause: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports and did not have adequate knowledge to complete the reports correctly. Effect: Incorrect reporting led EDA to close the grant without question and results in a questioned cost of $131,986 and a material weakness in internal control over compliance pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of unspent federal funding was reported and returned to the US Department of Commerce. Recommendation: We recommend GEODC improve controls over compliance for reporting by designating grant reporting to one member of the GEODC staff and review of the reports to a deferent staff member. The staff member directly involved in the financial accounting function of GEODC should perform one of these duties. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve controls over compliance for reporting by designating grant reporting to one member of the GEODC staff and review of the reports to a different staff member, making sure the staff member directly involved in the financial accounting function of GEODC performs one of these duties.
Finding 2023-003
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-03 Material Weakness: Questioned costs were identified within the EDA CARES Planning grant and EDA CARES RLF, $131,986 and $30,865, respectively. $131,986 and $30,865 of federal funds remained unspent at the end of the grant periods and were transferred to the general fund under the assumption unspent funds could be spent in any manner. Criteria: Grant specialists at the Economic Development Administration confirmed all federal funds were to be spent in align with the original Scope of Work and fall within the project period dates. Condition: $162,851 of federal funds were not spent in align with the original Scope of Work and within the project period dates. Cause: GEODC staff did not have adequate knowledge of the EDA CARES Planning grant and EDA CARES RLF that would enable them to identify unallowable costs. Effect: The result is a questioned cost of $162,851 and a compliance violation of requirements pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce and $30,865 was returned to the EDA CARES revolving loan fund cash balance. Recommendation: We recommend $131,986 of federal funding be returned to the US Department of Commerce and $30,865 returned to the EDA CARES revolving loan fund cash balance. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended steps after the issue was identified in the annual audit but before the date of our audit report.
Finding 2023-003
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-03 Material Weakness: Questioned costs were identified within the EDA CARES Planning grant and EDA CARES RLF, $131,986 and $30,865, respectively. $131,986 and $30,865 of federal funds remained unspent at the end of the grant periods and were transferred to the general fund under the assumption unspent funds could be spent in any manner. Criteria: Grant specialists at the Economic Development Administration confirmed all federal funds were to be spent in align with the original Scope of Work and fall within the project period dates. Condition: $162,851 of federal funds were not spent in align with the original Scope of Work and within the project period dates. Cause: GEODC staff did not have adequate knowledge of the EDA CARES Planning grant and EDA CARES RLF that would enable them to identify unallowable costs. Effect: The result is a questioned cost of $162,851 and a compliance violation of requirements pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce and $30,865 was returned to the EDA CARES revolving loan fund cash balance. Recommendation: We recommend $131,986 of federal funding be returned to the US Department of Commerce and $30,865 returned to the EDA CARES revolving loan fund cash balance. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended steps after the issue was identified in the annual audit but before the date of our audit report.
Finding 2023-004
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-04 Material Weakness: Unallowable costs for the EDA Cares Planning Grant and EDA Cares Revolving Loan Fund were not identified in a timely or accurate manner. Criteria: GEODC staff are required to have or obtain adequate knowledge of federal funding program requirements that will allow them to spend funding in accordance with all compliance requirements set forth in grant documents. Condition: Federal funds were not spent in align with the original Scope of Work and within the project period dates specified in the grant documents. Cause: GEODC staff did not have adequately comply with federal funding compliance requirements within their control. Effect: This has resulted in a material weakness in internal control over compliance pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: The grant period has ended for this particular funding but GEODC administers many contracts and grants for which adequate knowledge of funding requirements are needed. Recommendation: We recommend GEODC improve controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve internal controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements.
Finding 2023-004
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-04 Material Weakness: Unallowable costs for the EDA Cares Planning Grant and EDA Cares Revolving Loan Fund were not identified in a timely or accurate manner. Criteria: GEODC staff are required to have or obtain adequate knowledge of federal funding program requirements that will allow them to spend funding in accordance with all compliance requirements set forth in grant documents. Condition: Federal funds were not spent in align with the original Scope of Work and within the project period dates specified in the grant documents. Cause: GEODC staff did not have adequately comply with federal funding compliance requirements within their control. Effect: This has resulted in a material weakness in internal control over compliance pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: The grant period has ended for this particular funding but GEODC administers many contracts and grants for which adequate knowledge of funding requirements are needed. Recommendation: We recommend GEODC improve controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve internal controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements.
Finding 2023-005
U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-05 Material Weakness: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Criteria: All grant reports are required to be submitted timely and agree with supporting financial records. Condition: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Cause: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports and did not have adequate knowledge to complete the reports correctly. Effect: Incorrect reporting led EDA to close the grant without question and results in a questioned cost of $131,986 and a compliance violation of requirements pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce. Recommendation: We recommend unspent federal funds $131,986 be reported and be returned to the US Department of Commerce. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended step after the issue was identified in the annual audit but before the date of our audit report.
Finding 2023-006
U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-06 Material Weakness: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports. The reports did not accruately relfect the grant activity. Criteria: GEODC staff are required to have controls in place to assure grant reports are submitted timely and agree with supporting financial records. Condition: Final reporting of the EDA CARES Planning grant did not agree to supporting financial records. Cause: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports and did not have adequate knowledge to complete the reports correctly. Effect: Incorrect reporting led EDA to close the grant without question and results in a questioned cost of $131,986 and a material weakness in internal control over compliance pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of unspent federal funding was reported and returned to the US Department of Commerce. Recommendation: We recommend GEODC improve controls over compliance for reporting by designating grant reporting to one member of the GEODC staff and review of the reports to a deferent staff member. The staff member directly involved in the financial accounting function of GEODC should perform one of these duties. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve controls over compliance for reporting by designating grant reporting to one member of the GEODC staff and review of the reports to a different staff member, making sure the staff member directly involved in the financial accounting function of GEODC performs one of these duties.