Overview
MGCC did not submit COVID-19 SBRGP reports by required dates and did not ensure that those reports included all necessary information.
MGCC did not produce an initial financial and program report. The final financial and program report produced by MGCC management at the end of the program was late by 16 days, and the prepared report did not contain any information on program outcomes.
If MGCC does not provide timely grant program and financial information, then key stakeholders and the public cannot measure the impacts of the program and assess whether the program met its intended purpose in a timely manner.
Authoritative Guidance
Section VII of Amendment to Attachment A of the Small Business Relief Grant Program—Part II states,
Initial financial and program report is due on February 28, 2021 including any quantifiable information such as job creation/retention and economic impact.
Final financial and program report, including outcomes due on June 30, 2021.
Reasons for Issue
According to MGCC officials, they could not produce outcome data by the deadlines of the initial and final program reports because not enough time had elapsed to measure the outcome of the COVID-19 SBRGP. MGCC officials told us that outcomes such as job creation, job retention, and economic impact could not be measured until the grant funds were used. Additionally, MGCC officials also told us that the final report was submitted after the deadline because the final COVID-19 SBRGP payment was made after June 30, 2021 (the date the final report was due).
Recommendation
MGCC should develop reporting processes and procedures to ensure that required reports are submitted to appropriate entities by required dates and that these reports contain requested information. If dates cannot be met or deadlines are unreasonable given disbursement schedules, MGCC should contact the entity it contracted with to negotiate a different timeframe.
Auditee’s Response
MGCC acknowledges that certain COVID-19 SBRGP reports were submitted to EOHED after the reporting deadline stated in the contract with EOHED. MGCC verbally notified EOED that its report would be late, and EOHED subsequently accepted the late reports.
MGCC is working currently with EOED to clarify reporting requirements on all of its programs funded through a contract with EOED. MGCC will thereafter implement policies and controls to ensure that program outcomes are reported in a timely manner and include all of the reporting data and metrics required.
Auditor’s Reply
Based on its response, MGCC is taking measures to address our concerns on this matter.
| Date published: | August 28, 2024 |
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