Finding 8557 (2023-003)

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, 2023 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 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 one report did not have supporting documentation on hand. Questioned Costs: None Context: During our testing of reporting and inquiry, it was noted that one of four SF-425 reports, two of four ED-209 reports, one of four project progress reports, and three of six GPRA performance reports did not have formal documentation of review. In addition, one of four SF-425 and three of six GPRA performance reports were not submitted timely. Finally, one of six GPRA reports did not have supporting documentation on hand to support what was submitted. Cause: Lack of management oversight. Effect: The Agency could have submitted inaccurate reports for reimbursement, or not submitted them timely. Repeat Finding: Yes, Finding 2022-005. Recommendation: We recommend the Agency 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.