Finding 6575 (2023-002)

Program Information: 11.307 Economic Adjustment Assistance Repeat Finding from Prior Year: No Condition: The Development Fund lacks an adequate internal control system for ensuring that federal award performance or special reports are submitted timely in accordance with grant requirements. Criteria: The Development Fund should implement an internal control system that ensures performance or special reporting over federal awards is performed timely as per the terms of the grant awards. Context: The Special Terms of the grant awards establish the reporting periods and deadlines for performance or special reports. Performance or special reports are often submitted with financial reports, which might take longer to prepare. The performance or special reports were at times submitted shortly after a notification from the grant awarding agency that the Development Fund was delinquent in submitting a report or an inquiry by the grant awarding agency as to the status of the report preparation. Of the five performance or special reports tested, three reports were not submitted timely. Reports were submitted between at least 5 and 44 calendar days late. Cause: The Development Fund's federal award performance and special reporting internal controls do not include a process for ensuring that all performance and special reports are submitted before their due dates. / Effect: Lack of compliance with associated grant reporting requirements as outlined in 2 CFR 200, Appendix XI, Uniform Grant Guidance. Questioned Costs: Not applicable Sampling method: Non-statistical (targeted) Recommendation: We recommend that the Development Fund utilize internal control methods to ensure that performance and special reports for federal awards are submitted timely.