Finding Text
Finding 2023-001 – Program Reporting Requirements – Internal Control Over Compliance – Material Weakness
Federal Program Information:
Funding Agency: Economic Development Administration
Title: Economic Adjustment Assistance
Assistance Listing Number: 11.307
Award year and number: 2020 and 08-79-05447
Pass-through entity: Not applicable
Type of Finding: Material Weakness in internal control over compliance (reporting)
Criteria or Specific Requirement: Recipients of funds under this program are required to submit project progress reports (on a calendar year) to the Project Officer on a quarterly basis for the periods ending March 31, June 30, September 30, and December 31. The quarterly project progress reports are due no later than one month following the end of the quarter period. Recipients of funds under this program are also required to submit a “Federal Financial Report” (Form SF-425) on a semi-annual basis (on the fiscal year) for the periods ending March 31 and September 30. The semi-annual Form SF-425 reports are due within 30 days of the end of each period.
Condition: During our testing, we noted that the Department’s controls surrounding the reporting function for this program were not operating effectively to ensure that the reports were filed in a timely manner, as required by the terms of the award.
Questioned Costs: None.
Context: On August 16, 2023, the Department submitted the December 31, March 31, and June 30 quarterly progress reports to the Economic Development Administration, which were due on January 30, 2023, April 30, 2023, and July 30, 2023. The September 30 quarterly progress report was filed on September 24, 2023. Therefore, three of the four quarterly progress reports were not filed timely for the year ended September 30, 2023. The Department submitted the March 31 and September 30 semi-annual Form SF-425 reports to the Economic Development Administration on April 27, 2023 and December 27, 2023, respectively. Therefore, the semi-annual Form SF-425 for the period ending September 30 was not filed timely.
Effect: The Department was not in compliance with the reporting requirements of the noted program.
Cause: The Department does not have an internal control system designed to ensure all reports are submitted by the required date.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Department’s management implement procedures to ensure that all reports are submitted by the required date.
The Department’s Response/View of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has prepared a corrective action, as detailed in the accompanying Corrective Action Plan. The Department has designated Sam Rowe, Accounting Manager, as the person responsible for implementing the corrective action plan. The Department’s Tribal Administrator, Tim Good Voice, will assist Sam in implementing the corrective action plan. The Department’s planned completion date for the corrective action plan is July 15, 2024. Sam Rowe can be contacted at (405) 395-5000 for any questions regarding the finding or the related corrective action plan. Tim Good Voice can be contacted at (918) 560-6198.