Finding 585270 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-01-17

AI Summary

  • Core Issue: The final report for the CARES Planning grant inaccurately stated that all funds were spent, while $131,986 remained unspent.
  • Impacted Requirements: Grant reports must be submitted on time and accurately reflect financial records.
  • Recommended Follow-Up: Ensure the unspent funds of $131,986 are reported and returned to the U.S. Department of Commerce.

Finding Text

U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-05 Material Weakness: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Criteria: All grant reports are required to be submitted timely and agree with supporting financial records. Condition: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Cause: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports and did not have adequate knowledge to complete the reports correctly. Effect: Incorrect reporting led EDA to close the grant without question and results in a questioned cost of $131,986 and a compliance violation of requirements pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce. Recommendation: We recommend unspent federal funds $131,986 be reported and be returned to the US Department of Commerce. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended step after the issue was identified in the annual audit but before the date of our audit report.

Categories

Questioned Costs Material Weakness Reporting

Other Findings in this Audit

  • 8824 2023-003
    Material Weakness
  • 8825 2023-003
    Material Weakness
  • 8826 2023-004
    Material Weakness
  • 8827 2023-004
    Material Weakness
  • 8828 2023-005
    Material Weakness
  • 8829 2023-006
    Material Weakness
  • 585266 2023-003
    Material Weakness
  • 585267 2023-003
    Material Weakness
  • 585268 2023-004
    Material Weakness
  • 585269 2023-004
    Material Weakness
  • 585271 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
11.302 Economic Development_support for Planning Organizations $112,500
10.767 Intermediary Relending Program $74,200
11.307 Economic Adjustment Assistance $68,014
10.769 Rural Business Enterprise Grants $18,119