Finding Text
2024-002 – Coronavirus Capital Projects Fund - Assistance Listing No. 21.029; Grant Period - For the year ended December 31, 2024 Condition: The Organization did not report an accurate total of federal expenditures for the fourth quarter report which covered the period October 1, 2024 through December 31, 2024. Criteria: The Organization is required to provide quarterly reporting on the Coronavirus Capital Project Fund grant to Empire State Development. Cause: The Organization did not have the necessary procedures in place to provide an accurate total of fourth quarter project expenditures in the quarterly reporting request. Effect of Condition: The Organization did not provide an accurate total of fourth quarter project expenditures. Questioned Cost: None. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization's should adopt procedures to provide an accurate total of expenditures on all quarterly reporting requests. Views of Responsible Officials and Planned Corrective Actions: At the time of the Q4 2024 submission, management prepared and submitted the quarterly report prior to the completion of the quarter, resulting in interim financial data being included. This occurred because both weekly and quarterly reports were being produced concurrently, with overlapping information. While the reported numbers were estimates, they had no impact on project outcomes, payments, or work performed, and the granting agency did not raise any concerns following submission. To address this issue, management streamlined the reporting process beginning with Q1 2025 by aligning the quarterly reporting with finalized weekly reports to ensure accuracy and consistency. Additionally, the Organization has instituted a formal control requiring that all reporting submissions be routed through the CFO for review and approval rather than operations personnel. This process will ensure compliance with reporting requirements, prevent premature submission of interim data, and strengthen internal oversight of grant reporting.