Finding Text
U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-05 Material Weakness: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Criteria: All grant reports are required to be submitted timely and agree with supporting financial records. Condition: The final report submitted to EDA for the CARES Planning grant incorrectly reported that all funds had been spent when $131,986 remained unspent. Cause: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports and did not have adequate knowledge to complete the reports correctly. Effect: Incorrect reporting led EDA to close the grant without question and results in a questioned cost of $131,986 and a compliance violation of requirements pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of federal funding was returned to the US Department of Commerce. Recommendation: We recommend unspent federal funds $131,986 be reported and be returned to the US Department of Commerce. Views of Responsible Officials and Planned Corrective Actions: GEODC staff agreed with the finding and completed the recommended step after the issue was identified in the annual audit but before the date of our audit report.