Finding 1217290 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-06-10

AI Summary

  • Core Issue: The organization failed to submit the required financial report for revolving loan funds on time.
  • Impacted Requirements: Reports must be filed within 30 days after the end of the reporting period to comply with federal guidelines.
  • Recommended Follow-Up: Implement stronger procedures and monitoring to ensure timely report submissions in the future.

Finding Text

U.S. Economic Development Administration ALN# 11.307 Significant Deficiency: 2024-001 Reporting Criteria: the Organization is required to submit certain reports to the appropriate federal agency for revolving loan funds and grants. Condition: The financial report was due 30 days after the end of the reporting period. The report was not filed in a timely manner. Effect: The report was filed late. Cause: The FY2024 Semi-Annual Revolving Loan Fund Financial Reports were not submitted within the required timeframe. Current management was not responsible for report preparation during the reporting period and was unable to verify the specific circumstances that resulted in the late submissions. The finding indicates that reporting controls and monitoring procedures in place at the time were not sufficient to ensure required deadlines were met primarily due to accounting and RLF staff turnover. Recommendation: The organization should ensure that procedures are put in place to meet reporting requirements. Views of responsible officials and planned corrective actions: NARCOG agrees with the finding and will adhere to the corrective action plan on page 15 of the financial report.

Corrective Action Plan

FINDINGS - U.S ECONOMIC DEVELOPMENT ADMINISTRATION, ALN# 11.307 SIGNFICANT DEFICIENCY Finding 2024-001 - Reporting: The U.S. Economic Development Administration ALN # 11 .307 require reports to the appropriate federal agency for revolving loan funds and grants. Response to Aydjt finding 2024-001: Background: The FY2024 Semi-Annual Revolving Loan Fund Financial Reports were not submitted within the required timeframe. Current accounting and RLF management were not responsible for report preparation during the reporting period and unable to verify the specific circumstances that resulted in the late submissions. The finding indicates that report controls and monitoring procedures in place at the time were not sufficient to ensure required deadlines were met primarily due to accounting and RLF staff turnover. Conclusion: Staffing turnover was mitigated in Fall 2025 allowing significant progress towards existing corrective action plan. Progress was as follows: • Developing updated and written procedures for RLF reporting. • Ensuring current key staff members and management have access to reporting instructions and supporting documentation. • Ensuring periodic management review of reporting deadlines and requirements.

Categories

Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1217289 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $779,950