The results of our audit disclosed deficiencies in internal control and/or instances of noncompliance or other matters that are considered reportable under Government Auditing Standards or OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. These items included: COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) - STATE-ADMINISTERED SMALL CITIES PROGRAM CLUSTER - CFDA 14.228 AND 14.255 (1) LACK OF SEGREGATION OF DUTIES IN THE ADMINISTRATION OF GRANTS MANAGEMENT SYSTEM The Department did not properly segregate duties for the administration of the Grant Management System (GMS). (2) DEFICIENCIES IN FEDERAL REPORTING The Department submitted Community Development Block Grant (CDBG) reports to the federal agency that were misstated. WORKFORCE INVESTMENT ACT OF 1998 (WIA) CLUSTER - CFDA 17.258, 17.259 AND 17.260 (3) DEFICIENCIES IN SUBRECIPIENT MONITORING The Department did not document that monitoring procedures were performed to ensure that data for all participants receiving Workforce Investment Act (WIA) Cluster funds was included in the Workforce Plus system. UNEMPLOYMENT INSURANCE - CFDA 17.225 (4) DEFICIENCIES IN BENEFIT INTEGRITY'S PROCESSING AND MONITORING OF OVERPAYMENT INVESTIGATIONS The Department's Division of Employment Security Benefit Integrity section (formerly Benefit Payment Control) has not been able to investigate and adjudicate potentially inappropriate benefit payments timely. (5) CONTROLS OVER SYSTEM ACCESS NEED IMPROVEMENT The Department has granted an excessive number of personnel the authority to use critical update transaction codes in the unemployment benefit system. WEATHERIZATION ASSISTANCE FOR LOW-INCOME PERSONS - CFDA 81.042 (6) DEFICIENCIES IN CASH MANAGEMENT The Department of Commerce did not comply with federal and state cash management requirements for the Weatherization Assistance for Low-Income Persons program. (7) SUBRECIPIENT MONITORING NEEDS IMPROVEMENT The Department of Commerce did not have procedures in place to ensure that the subrecipients in the Weatherization Assistance for Low-Income Persons program and funded by American Recovery and Reinvestment Act (ARRA) moneys were registered in the Central Contractor Registration (CCR) database. STATE ENERGY PROGRAM - CFDA 81.041 (8) DEFICIENCIES IN CASH MANAGEMENT The Department of Commerce did not comply with federal and state cash management requirements for the State Energy Program (Energy) program. (9) SUBRECIPIENT MONITORING NEEDS IMPROVEMENT The Department of Commerce did not adequately monitor subrecipients in the State Energy Program. (10) DEFICIENCIES IN FEDERAL REPORTING For the State Energy Program, the Department of Commerce did not have adequate controls in place to ensure compliance with federal reporting requirements. Details about each item are provided in the Audit Findings and Responses section of the report.
