Finding Text
U. S. Department of Commerce, COVID-19 EDA CARES RLF and Planning Grant, Listing Number 11.307 2023-04 Material Weakness: Unallowable costs for the EDA Cares Planning Grant and EDA Cares Revolving Loan Fund were not identified in a timely or accurate manner. Criteria: GEODC staff are required to have or obtain adequate knowledge of federal funding program requirements that will allow them to spend funding in accordance with all compliance requirements set forth in grant documents. Condition: Federal funds were not spent in align with the original Scope of Work and within the project period dates specified in the grant documents. Cause: GEODC staff did not have adequately comply with federal funding compliance requirements within their control. Effect: This has resulted in a material weakness in internal control over compliance pertaining to Activities Allowed/Allowable Costs being reported in the audit reporting package. Context: The grant period has ended for this particular funding but GEODC administers many contracts and grants for which adequate knowledge of funding requirements are needed. Recommendation: We recommend GEODC improve controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve internal controls over compliance with Activities Allowed/Allowable Costs by accepting federal funding only when staff have or can obtain adequate knowledge of program requirements that will enable them to spend funding in accordance with all federal compliance requirements.