Finding Text
We performed a closeout test to validate procedures surrounding the expenditure review and closeout of the grants. We selected a sample of sixty-one (61) cases for detail testing in the total amount of $2,942,184 from a total of 317 grants awarded amounting to $15,294,128 for which closeout procedures were completed during the year ended June 30, 2023. For one (1) case out of the sixty-one (61) cases examined, representing 2% of the sample, we noted the case was identified with a duplication of benefits (DOB) in the system. Upon further review, we noted the Business Applicant received a grant from another government agency for working capital in the amount of $276,203 that was not disclosed by the Business Applicant at the time the grant was approved. The documents supporting the grant were provided by the Business Applicant during the expenditure review and closeout procedures. This grant, when considered in the calculation for DOB for the grant approved of $150,000, created a duplicative assistance. As a result, due to failure to receive additional grant information from the Business Applicant, there was no unmet need at the time the grant was approved. The expenditure review and closeout procedures for the grant were completed and confirmation of compliance was sent to the Business Applicant although the system showed a DOB in the review. No explanation was found in the notes with the evaluation to determine the benefits were not duplicated. In addition, the DOB in the system was later removed by request to the system administrator without the proper analysis and supporting documentation for the change requested.