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: ED20CHI3070088/06-79-06222/06-79-06392; 2022
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, 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 two reports did not have supporting documentation on hand.
Questioned Costs: None
Context: During our testing of reporting and inquiry, it was noted that one of five SF-425 reports, one of two ED-209 reports, four of ten project progress reports, and two of two GPRA performance reports did not have formal documentation of review. In addition, two of two ED-209 reports, five of 10 project progress reports, and two of two GPRA performance reports were not submitted timely. Finally, two of two GPRA reports did not have supporting documentation on hand to support what was submitted.
Cause: New reporting requirements to the Commission due to unique nature of COVID funding.
Effect: The Commission could have submitted inaccurate reports for reimbursement, or not submitted them timely.
Repeat Finding: Yes, Finding 2021-005.
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.