Audit 374323

2024-005 – CASEFILE REVIEW Federal Agency: U.S Department of Commerce Federal Program Name: Economic Development Cluster Assistance Listing Number: 11.307 Pass-Through Agency: N/A – Direct Pass-Through Numbers: N/A – Direct Federal Award Identification Number: 06-79-06218 - URI:114975 and 06-69-06370 - URI:118221 Compliance Requirement Affected: Reporting Award Period: Year Ended: June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria: Standard internal control practices over federal award reporting require that all submitted reports include evidence of formal review and documentation of the date of submission. These controls help ensure accuracy, completeness, and compliance with award-specific timelines and reporting expectations. Condition: Several reports selected for testing lacked documentation indicating that a formal review had taken place prior to submission. Questioned Costs: None Context: Through inquiry and review of reporting procedures, it was determined that internal controls over the review of reports were not operating effectively. Reports lacked formal sign-offs or records of supervisory review. Cause: The deficiency was the result of a lack of management oversight in ensuring that reporting procedures were followed and monitored consistently. Effect: The absence of documented review increase the risk that reports may be inaccurate, incomplete, or noncompliant with grant requirements. Failure to submit accurate reports may affect the Commission’s standing with federal awarding agencies. Repeat Finding: Yes Recommendation: We recommend the Commission implement formal procedures requiring documented supervisory review of all reports prior to submission. Procedures should also include maintaining clear records of submission dates to demonstrate compliance with federal reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding. Individual responsible: Jay Trusty, Executive Director