Finding 1173435 (2025-002)

Material Weakness Repeat Finding
Requirement
ABGJLMN
Questioned Costs
-
Year
2025
Accepted
2026-02-13

AI Summary

  • Core Issue: Erroneous deposits and transfers from the EDA CARES Act RLF bank account, along with untimely loan payments.
  • Impacted Requirements: Financial documents and account balances do not match ED-209 forms, risking compliance and accurate reporting.
  • Recommended Follow-Up: Increase awareness of account activity, ensure timely loan payment transfers, and redraft ED-209 forms for accurate reconciliation.

Finding Text

During audit procedures, we noted that deposits and transfers were made erroneously from the EDA CARES Act RLF bank account. We also noted that loan payments were not transferred to the EDA CARES Act RLF bank account in a timely fashion. Additionally, we noted that Northeast Nebraska Economic Development District's Revolving Loan Fund financial documents and account balances did not reconcile with the ED-209 forms submitted to the United States Department of Commerce, Economic Development Administration. This presents an opportunity for erroneous financial reporting and noncompliance with Revolving Loan Fund requirements. We recommend that management have a heightened awareness of the deposits and transfers made from the EDA CARES Act RLF bank account. We recommend that loan payments are transferred to the EDA CARES Act RLF bank account in a timely fashion. We also recommend that Northeast Nebraska Economic Development District redraft the ED-209 forms to accurately reconcile with their Revolving Loan Fund financial documents and account balances.

Corrective Action Plan

Management will have a heightened awareness of the deposits and transfers made from the EDA CARES Act RLF bank account. Management will ensure that loan payments are transferred to the EDA CARES Act RLF bank account in a timely fashion. Northeast Nebraska Economic Development District redrafted and resubmitted their ED-209 forms on December 18, 2025.

Categories

Reporting Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $2.43M
11.302 ECONOMIC DEVELOPMENT SUPPORT FOR PLANNING ORGANIZATIONS $52,500