Finding Text
Finding 2023-002: Assistance #11.307 - Economic Adjustment Assistance - Revolving Loan Fund, U.S. Department of Commerce, Economic Development Administration, Award No. 05-39-01879 (Significant Deficiency) (Repeat Finding 2022-002)
Condition: Reports submitted during the year were not submitted within the deadline and the review process was not documented.
Criteria: All Economic Development Administration (EDA) Revolving Loan Fund (RLF) recipients must submit in electronic format Form ED-209 through EDA’s Revolving Loan Fund Management System (RLFMS) semi-annually based on the entity’s fiscal year-end and submitted within 30 calendar days.
Questioned Costs: N/A
Context: Two of the RLF Financial Reports (ED-209) selected for review were not submitted within the required deadline. The sample size was determined based upon the guidelines provided by the AICPA which is not a statistically valid sample.
Cause: The Corporation experienced delays due to new reporting requirements relating to the treatment of past due loan payments. Report corrections and new submissions were required that fell after the required deadline.
Effect: Untimely filing or missed reporting may impact future awards with the EDA.
Recommendation: We recommend that the Corporation review its process and procedures to ensure that required reports are being prepared, reviewed, and submitted within deadlines.
Views of Responsible Officials (Unaudited): The EDC Loan Corporation ED-209 Reports will be reviewed and submitted by the required 30 calendar days following the reporting date. EDCLC will submit the reports 5-10 days prior to the reporting due date to allow for any correction response submissions.