Finding 587291 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-01-30

AI Summary

  • Core Issue: Reports were submitted late, violating EDA deadlines for the Revolving Loan Fund.
  • Impacted Requirements: All RLF recipients must submit Form ED-209 electronically within 30 days of their fiscal year-end.
  • Recommended Follow-Up: Update processes to ensure timely preparation and submission of reports to avoid future issues.

Finding Text

Finding 2022-002: Assistance #11.307 - Economic Adjustment Assistance - Revolving Loan Fund, U.S. Department of Commerce, Economic Development Administration, Award No. 05-39- 01879 (Significant Deficiency) Condition: Reports submitted during the year were not submitted within the deadline. Criteria: All Economic Development Administration (EDA) Revolving Loan Fund (RLF) recipients must submit in electronic format Form ED-209 through EDA’s Revolving Loan Fund Management System (RLFMS) semi-annually based on the entity’s fiscal year-end and submitted within 30 calendar days. Questioned Costs: N/A Context: Two of the two RLF Financial Report (ED-209) and Performance Progress Report were selected for review and were not submitted within the required deadline. Also, the Corporation did not receive a waiver from the EDA on the late submission. The sample size was determined based upon the guidelines provided by the AICPA which is not a statistically valid sample. Cause: The Corporation experienced delays due to a new portal submission process (some historical data was deleted in the transition and their technical team had to rebuild it). Effect: Untimely filling or missed reporting may impact future awards with the EDA. Recommendation: We recommend that the Corporation update process and procedures to ensure that required reports are being prepared, reviewed, and submitted within deadlines. Views of Responsible Officials (Unaudited): The ED-209 reporting requirements ended when the disbursement phase ended on June 30, 2022. The Corporation has procedures in place to meet all future reporting requirements.

Categories

Reporting HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 10849 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.307 Economic Adjustment Assistance $805,579
14.218 Community Development Block Grants/entitlement Grants $112,845