Finding Text
Identification of the federal program U.S. Department of Commerce
Economic Development Cluster
Assistance Listing Number 11.307 Economic Adjustment Assistance
Federal Award Number – 08-79-05441
Award Period – 7/12/2021 – 7/11/2026
Criteria or specific requirement (including statutory, regulatory, or other citation) 2 CFR 200.303(a) requires that a non-federal entity must “(a) 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 and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).”
Criteria or specific requirement (including statutory, regulatory, or other citation) (continued) According to the Economic Development Administration (EDA) Reporting Requirements document provided by Texas Biomed, “The Recipient shall submit a Quarterly Progress Report on a quarterly basis for the periods ending March 31, June 30, September 30, and December 31, or any portion thereof. Each Quarterly Progress Report must be submitted in accordance with the deadlines outlined in the specific award conditions, or, where not otherwise specified, Quarterly Progress Reports will be due on a quarterly basis not later than January 31, April 30, July 31, and October 31 for the immediate previous quarter.”
Condition Texas Biomed submitted 2 of 3 quarterly progress reports to EDA after the due dates.
Cause Texas Biomed did not have effective internal controls and procedures in place to ensure Texas Biomed submitted quarterly progress reports by the due dates.
Effect or potential effect Texas Biomed did not comply with progress reporting due dates.
Questioned costs None.
Context EY selected and tested all 3 quarterly progress reports submitted to EDA during the year.
2 quarterly progress reports were submitted late, as follows:
Quarterly Report Due Date Date Submitted
Quarter Ended 3/31/2023 4/30/2023 6/26/2023
Quarter Ended 6/30/2023 7/31/2023 8/7/2023
Identification as a repeat finding, if applicable This is not a repeat finding.
Recommendation We recommend Texas Biomed design and implement internal controls to ensure progress reports are submitted by the required due dates.
Views of responsible
officials Management agrees with the finding and will implement corrective action to ensure reports are submitted timely.