Finding 42744 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-06-27

Audit: 43495

Organization: Toledo Regional Chamber of Commerce (OH)

Auditor: Cla

AI Summary

Core Issue: Lack of documentation to verify that the CFO checked sam.gov for consultant suspensions and that grant managers reviewed monthly reports.
Impacted Requirements: Internal controls over compliance were not adequately documented, affecting verification processes.
Recommended Follow-Up: CFO should document verification in consultant files; Grant Manager should document reviews of monthly programmatic reports.

Finding Text

Federal Agency: Small Business Administration Federal Program Name: Small Business Development Centers Assistance Listing Number: 59.037 Federal Award Identification Number and Year: OSBDC - 2022 Pass-Through Agency: Ohio Development Services Agency Award Period: October 1, 2021 ? December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Documentation did not exist to support that the CFO checked sam.gov to verify consultants were not suspended or debarred. There also was no documentation supporting the grant managers review of the monthly programmatic reports prepared and submitted. Condition: Documentation of control did not exist for all samples selected in both tests identified above. Questioned costs: None Context: For both testing?s, it was noted that documentation did not exist to show the control over compliance over suspension and debarment and reporting controls were in place for all samples selected. Cause: The Chamber stated the control was in place, however CLA was unable to verify as no documentation was kept to support the activity. Effect: CLA was unable to verify that the controls were in place. Repeat Finding: No Recommendation: CLA recommends that the CFO document his verification in the consultant file. CLA also recommends the Grant Manager document the review of the monthly programmatic reporting. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Small Business Administration Toledo Regional Chamber of Commerce and Toledo Area Chamber Foundation respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: January 1, 2022- December 31, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS Small Business Administration 2022-001 Small Business Development Centers - Assistance Listing No. 59.037 Recommendation: CLA recommends that the CFO document his verification in the consultant file CLA also recommends the Grant Manager document the review of the monthly programmatic reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The CFO will print, sign and date a copy from the sam.gov site showing that consultants used to provide services are not suspended or debarred. The copy will be maintained in the consultant file. The Grant Manager will print, sign and date a copy of the reviewed monthly programmatic report. The copy will be maintained in a newly created file for this purpose. Name(s) of the contact person(s) responsible for corrective action: Tom Walsh, CFO Planned completion date for corrective action plan: June 30, 2023 If the Small Business Administration has questions regarding this plan, please call Tom Walsh at 567-420-1243.

Other Findings in this Audit

42745 2022-001

Significant Deficiency
619186 2022-001

Significant Deficiency
619187 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
59.037	Small Business Development Centers	$554,196
59.077	Community Navigator Pilot Program	$59,295
14.252	Section 4 Capacity Building for Community Development and Affordable Housing	$44,000
59.061	State Trade and Export Promotion Pilot Grant Program	$31,332
11.307	Economic Adjustment Assistance	$30,655
12.600	Community Investment	$4,034