Finding 385476 (2023-001)

Federal Program: Economic Development Cluster: Economic Adjustment Assistance Assistance Listing Number: 11.307 Federal Agency: U.S. Department of Commerce Pass-through Agency: N/A Award Number: N/A Award Year: 2023 Compliance Requirement: Reporting Questioned Costs: None Criteria: As required by the grant agreement, the Authority must submit a Form SF-425, Federal Financial Report, on a semi-annual basis for the periods ending March 31, and September 30 for the entire project period. Condition and Context: The Authority did not submit the Form SF-425, Federal Financial Report, for the period of September 30, 2022. Effect: The Authority has failed to comply with the terms of the grant agreement. Cause: The Authority did not have sufficient internal controls in place to monitor on-going compliance with the grant agreement. Recommendation: We recommend that management implement procedures to ensure that all grant agreements are reviewed on an on-going basis and that compliance requirements are recorded and tracked to ensure on-going compliance. View of Responsible Officials: Management agrees with this finding and has implemented controls to monitor on-going compliance with grant agreements. Additionally, when management became aware of the non-compliance, a Form SF-425, Federal Financial Report, was submitted for the period of September 30, 2022. The submission was approved by U.S. Department of Commerce on February 6, 2023.