NORTHWEST REGIONAL DEVELOPMENT COMMISSIONLocal Government

2024-001: Significant Deficiency Economic Adjustment Assistance – 11.307 – Reporting Criteria Federal reporting requirements require all reports to be completed accurately. Condition One report was not accurately completed. Cause The Organization did not have sufficient procedures in place to ensure that the reports were completed accurately. Effect One report was completed inaccurately, resulting in noncompliance with reporting requirements. Questioned Costs These errors noted were due to missing two loans on the report. No questioned costs. Context Two reports were selected for testing – ED-209 and ED-917. Only the ED-917 report contained errors. With the ED-917 report, the reporting period was for July 2023 to June 2024, but two loans from late 2023 were not included in the report due to management oversight. Repeat Finding No. Recommendation The Organization should implement procedures to ensure that reports are completed accurately and the person reviewing the report should compare information reported to the supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

Criteria: The Uniform Guidance Basic Guidelines for Allowable Costs requires that charges to federal awards be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles of 2 CFR Part 200, Subpart E. Condition: One invoice tested was paid twice and charged to the federal program through the indirect cost allocation. Cause: The Organization did not have sufficient procedures in place to ensure that duplicate invoices are caught and not paid twice. Effect: Duplicate indirect cost was charged to this federal program through the indirect cost allocation. Questioned Costs: None. This error noted was for an invoice selected from the indirect cost pool. There were a lot more eligible indirect costs. Context: A sample of 42 invoice transactions were selected for testing this federal program. Only one invoice tested was paid twice. It was paid originally via credit card, then a zero-balance invoice was paid later via check. No other errors were noted. Repeat Finding: No. Recommendation: The Organization should implement procedures to ensure that all invoices are properly reviewed to ensure that duplicate invoices are not paid. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the recommendation and will implement immediately.

2022-001: Significant Deficiency Economic Adjustment Assistance ? 11.307 ? Allowable Costs / Activities Criteria The Uniform Guidance requires charges to federal awards to be approved by the Organization and these approvals need to be documented. Condition One invoice tested was missing the approval documentation. Cause The Organization did not have sufficient procedures in place to ensure that approvals are documented for all expenses charged to grants. Effect One invoice charged to this federal program was missing the approval documentation. Questioned Costs None Context A sample of 46 transactions were selected for testing this federal program. Only one transaction tested was missing the approval documentation. Repeat Finding No Recommendation The Organization should implement procedures to ensure that all expenses are approved and this approval documentation is maintained. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.

Economic Adjustment Assistance ? 11.307 ? Reporting Criteria Federal reporting requirements require all reports to be completed accurately. Condition A few errors were noted on two reports submitted for this grant. Cause The Organization did not have sufficient procedures in place to ensure that the reports were completed accurately. Effect Two reports were completed inaccurately, resulting in noncompliance with reporting requirements. Questioned Costs None Context Eleven reports were selected for testing. Only two reports tested ? ED-209 and ED-917 contained errors. With the ED-209 report, the Organization had a keying error where one loan issued was entered as $140,000 instead of $1,400,000, resulting in the understatement of Total Dollars Leveraged line item. With the ED-917 report, the reporting period was for July 2021 to June 2022, but loans from June 2021 were included in the report due to spreadsheet formula errors. The Organization contacted their Grantor and was able to correct the report and resubmit. Repeat Finding No Recommendation The Organization should implement procedures to ensure that reports are completed accurately and the person reviewing the report should compare information reported to the supporting documentation. Views of Responsible Officials and Planned Corrective Actions The Organization agrees with the recommendation and will implement immediately.