Finding 19955 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-02

AI Summary

  • Core Issue: The Indiana Economic Development Corporation (IEDC) failed to report first-tier subawards over $30,000 as required by 2 CFR 170 Appendix A I(a).
  • Impacted Requirements: Noncompliance with federal reporting obligations due to lack of awareness about the requirement.
  • Recommended Follow-Up: IEDC should assess past reporting needs and establish policies to ensure future compliance with all reporting requirements.

Finding Text

Criteria: 2 CFR 170 Appendix A I(a) requires nonfederal entities to report on a public-facing Office of Management and Budget (OMB)-designated governmentwide website first-tier subawards that equal or exceed $30,000 in federal funds for a subaward to a non-federal entity. Condition and Context: The Indiana Economic Development Corporation, a component Unit of the State of Indiana (the IEDC), did not complete the required reporting in the criteria noted above due to lack of knowledge that the requirement was appliable to the IEDC. No other noncompliance related to reporting was noted. Cause and Effect: The lack of required reporting noted in the criteria above resulted in noncompliance with the compliance requirement. Recommendation: The IEDC should review if it is necessary to complete any reporting on past due first-tier subawards over $30,000 to a non-federal entity and respond accordingly. The IEDC should also consider implementing a policy or policies to ensure the entity is aware and compliant with all reporting requirements. Views of Responsible Officials and Planned Corrective Action: The IEDC agrees with the recommendation and plans to have the corrective action implemented by March 31, 2023.

Corrective Action Plan

Recommendation: The auditor recommended we review if any past due reports need completed and respond accordingly. The auditor also recommended implementing policies to ensure our awareness and compliance with necessary reporting requirements. Views of Responsible Officials and Planned Corrective Action: The IEDC agrees with the recommendation and plans to have the corrective action implemented by March 31, 2023 The IEDC acknowledges the noncompliance with the Federal Funding Accountability and Transparency Act (FFATA) for fiscal year 2022. It should be noted, that while the IEDC concurs with the finding, the finding does not impact expenditures of the federal award and will be quickly remedied. The IEDC has the following plan for corrective action and ongoing monitoring to ensure compliance on an ongoing basis: 1. Immediate corrective action is being taken, in that all required reports on open grants for FFATA will be completed on a retroactive basis no later than March 15, 2023. 2. In addition, this reporting is now a required step when a new grant is received and a sub-award is made over the reporting threshold. 3. In order to ensure overall reporting compliance, the IEDC is hiring a qualified outside public accounting firm to advise annually on new reporting requirements related to any of its grant programs. This contract will be in place by March 31, 2023.

Categories

Matching / Level of Effort / Earmarking Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 19956 2022-001
    Significant Deficiency
  • 19957 2022-001
    Significant Deficiency
  • 19958 2022-001
    Significant Deficiency
  • 19959 2022-001
    Significant Deficiency
  • 596397 2022-001
    Significant Deficiency
  • 596398 2022-001
    Significant Deficiency
  • 596399 2022-001
    Significant Deficiency
  • 596400 2022-001
    Significant Deficiency
  • 596401 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $40.28M
12.002 Procurement Technical Assistance for Business Firms $372,418
59.061 State Trade and Export Promotion Pilot Grant Program $291,402
59.037 Small Business Development Centers $6,548