Finding Text
U. S. Department of Commerce, COVID-19 EDA CARES RLF, Listing Number 11.307 2023-06 Material Weakness: During our testing it was found that one member of the GEODC staff is preparing and reviewing federal grant reports. The reports did not accruately relfect the grant activity. Criteria: GEODC staff are required to have controls in place to assure grant reports are submitted timely and agree with supporting financial records. Condition: Final reporting of the EDA CARES Planning grant did not agree to supporting financial records. 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 material weakness in internal control over compliance pertaining to Reporting being reported in the audit reporting package. Context: After the annual audit $131,986 of unspent federal funding was reported and returned to the US Department of Commerce. Recommendation: We recommend GEODC improve controls over compliance for reporting by designating grant reporting to one member of the GEODC staff and review of the reports to a deferent staff member. The staff member directly involved in the financial accounting function of GEODC should perform one of these duties. Views of Responsible Officials and Planned Corrective Actions: GEODC staff are in agreement with the recommendation and will improve controls over compliance for reporting by designating grant reporting to one member of the GEODC staff and review of the reports to a different staff member, making sure the staff member directly involved in the financial accounting function of GEODC performs one of these duties.