Finding 512544 (2022-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-12-02

AI Summary

  • Core Issue: Significant deficiencies in internal controls over compliance were found, particularly in the reporting process.
  • Impacted Requirements: Reports lacked formal review documentation, were submitted late, and some did not have necessary supporting documents.
  • Recommended Follow-Up: Implement procedures to ensure all reports are reviewed, documented, and submitted on time.

Finding Text

CASEFILE REVIEW Federal Agency: U.S Department of Commerce Federal Program Name: Covid-19 Economic Adjustment Assistance (Economic Development Cluster) Assistance Listing Number: 11.307 Pass-Through Agency: N/A – Direct Pass-Through Numbers: N/A – Direct Federal Award Identification Number and Year: ED20CHI3070049 and 06-79-06218 Compliance Requirement Affected: Reporting Award Period: Year Ended: June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Standard internal control procedures recommend that all reports should have supporting documentation of review and documentation of the date of submission. Condition: There was no formal review documented over several reports tested, some reports were not submitted timely as required by the specific award requirements, and one report did not have supporting documentation on hand. Questioned Costs: None Context: During our testing of reporting and inquiry, it was noted that SF-425 reports, ED-209 reports, and progress reports did not have formal documentation of review. In addition, two of four SF-425 and two of four progress reports were not submitted timely. Finally, two of the four progress reports did not have supporting documentation on hand to support what was submitted. Cause: Lack of management oversight. Effect: The Commission could have submitted inaccurate reports or not submitted them timely. Repeat Finding: No Recommendation: We recommend the Commission implement procedures to ensure all reports have proof of review and submission, as well as working towards submitting all reports timely. Views of Responsible Officials: There is no disagreement with the audit finding. Individual responsible: Jay Trusty, Executive Director

Categories

Reporting Internal Control / Segregation of Duties Significant Deficiency

Other Findings in this Audit

  • 512543 2022-005
    Significant Deficiency
  • 1088985 2022-005
    Significant Deficiency
  • 1088986 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $1.58M
81.041 State Energy Program $80,000