FAC Explorer

Audit 329851

FY End
2024-06-30
Total Expended
$15.02M
Findings
2
Programs
8
Organization: Indiana Economic Development Corporation (IN)
Year: 2024 Accepted: 2024-11-25
Auditor: Katz Sapper & Miller LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512111 2024-002 Material Weakness - L
1088553 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.031 State Small Business Credit Initiative Technical Assistance Grant Program $10.59M Yes 0
59.061 State Trade Expansion $286,676 - 0
11.307 Economic Adjustment Assistance $255,980 Yes 1
11.805 Mbda Business Center $88,018 - 0
59.058 Federal and State Technology Partnership Program $77,420 - 0
12.002 Procurement Technical Assistance for Business Firms $47,322 - 0
59.037 Small Business Development Centers $42,967 - 0
59.079 Cybersecurity for Small Business Pilot Program $2,507 - 0

Contacts

Name Title Type
SFJMLPWZ4547 Heidi Babkowski Auditee
3176972966 Scott Schuster Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Indiana Economic Development Corporation, a component unit of the State of Indiana, (the IEDC) for the year ended June 30, 2024. 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 operations of the IEDC, it is not intended to and does not present the net position, changes in net position, or cash flows of the IEDC. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, or when not applicable the specific federal award agreement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Subrecipients: The amounts of expenditures to subrecipients represents the actual expenditures incurred by subrecipients and reimbursable by IEDC during the year ended June 30, 2024 Program Income reported on the Schedule related to the State Small Business Credit Initiative Capital Program is recognized when received and amounted to $721,972 during the year ended June 30, 2024. Program income over the term of the award will be added to the original award from the U.S. Department of Treasury of $99,087,725. Program income used as of June 30, 2024 amounted to $283,333. As of June 30, 2024, the IEDC had accrued interest on notes receivable from Indiana Angel Network Fund, LLC relating to disbursements from SSBCI 1.0 and SSBCI 2.0 in the amount of $1,343,623 and $224,513, respectively. Interest income relating to the notes receivable will be recorded as program income upon receipt. De Minimis Rate Used: N Rate Explanation: The IEDC has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Agency must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”. 2 CFR 200.329(c)(1) includes requirements related to performance reports for federal award programs, including that the IEDC must submit performance reports as required by the Federal award. Non-construction awards under Assistance Listing number 11.307 require recipients of awards on or after June 1, 2020, to submit ED-916 and ED-918. Condition and Context: We noted IEDC submitted the SF-425 Federal Financial Report required under the Economic Adjustment Assistance grant which reported an inaccurate amount of cash receipts during the reporting period identified. The difference noted was not material to the major program. We also reviewed whether performance reports ED-916 and ED-918 required under the Economic Adjustment Assistance were submitted in a timely manner noting the reports were not filed as of the required submission date. There were no questioned costs related to this finding. Cause and Effect: We noted lack of internal controls surrounding the reporting process resulted in key line items in the SF-425 Federal Financial Report to be misstated. The errors were identified subsequent to the submission and corrected in the submission of the final SF-425 Federal Financial Report. We also noted lack of internal controls surrounding the reporting process resulted in performance reports for this federal award to be submitted after the required submission date. Recommendation: We recommend IEDC implement procedures to ensure reports are being reviewed by an individual familiar with the program prior to submission and are being submitted timely and accurately during the reporting period. Views of Responsible Officials and Actions Taken: We agree with the recommendation and as of October 2024 have implemented an additional layer of review, effective for the first round of reports filed for FY2025.
Finding 2024-002
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Agency must, among other things, “establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”. 2 CFR 200.329(c)(1) includes requirements related to performance reports for federal award programs, including that the IEDC must submit performance reports as required by the Federal award. Non-construction awards under Assistance Listing number 11.307 require recipients of awards on or after June 1, 2020, to submit ED-916 and ED-918. Condition and Context: We noted IEDC submitted the SF-425 Federal Financial Report required under the Economic Adjustment Assistance grant which reported an inaccurate amount of cash receipts during the reporting period identified. The difference noted was not material to the major program. We also reviewed whether performance reports ED-916 and ED-918 required under the Economic Adjustment Assistance were submitted in a timely manner noting the reports were not filed as of the required submission date. There were no questioned costs related to this finding. Cause and Effect: We noted lack of internal controls surrounding the reporting process resulted in key line items in the SF-425 Federal Financial Report to be misstated. The errors were identified subsequent to the submission and corrected in the submission of the final SF-425 Federal Financial Report. We also noted lack of internal controls surrounding the reporting process resulted in performance reports for this federal award to be submitted after the required submission date. Recommendation: We recommend IEDC implement procedures to ensure reports are being reviewed by an individual familiar with the program prior to submission and are being submitted timely and accurately during the reporting period. Views of Responsible Officials and Actions Taken: We agree with the recommendation and as of October 2024 have implemented an additional layer of review, effective for the first round of reports filed for FY2025.