Finding Text
Condition: The Organization's June 30, 2022 Form ED-209 Revolving Loan Fund Financial Report overstated expenses and understated cash available for lending as follows: Portion RLF Income Admin. Expense - Reported $ 88,363; Actual $ 4,388; Difference $ 83,975 RLF Cash Available for Lending - Reported $ 65,805; Actual $ 149,780; Difference $ (83,975) Criteria: Form ED-209 Revolving Loan Fund Financial Report requires, among others, the following representations from the Authorized Official signing the report: By signing the report, the Authorized Official certifies to EDA that the RLF is operating in accordance with its RLF Plan and that the information provided in the form is complete and accurate. Cause: The Organization's grant award included $83,975 of funding for the Revolving Loan Fund startup costs. Costs funded from the startup portion of the grant are included on the Organization's internal program reporting but should not have been reported on Form ED-209. Effect: The Organization's June 30, 2022 Form ED-209 overstated expenses and understated cash available for lending. Context: For the year ended December 31, 2022, the Organization submitted Form ED-209 three times. Two Forms ED-209 were selected for testing and one contained errors. Recommendation: The Organization should update its internal controls over reporting to require the review and approval of reports prior to submission.