Audit 15127

FY End
2022-09-30
Total Expended
$1.55M
Findings
8
Programs
11
Organization: Practical Farmers of Iowa (IA)
Year: 2022 Accepted: 2024-02-01

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
11290 2022-003 Significant Deficiency - I
11291 2022-004 Material Weakness - H
11292 2022-005 Significant Deficiency - B
11293 2022-006 Material Weakness - L
587732 2022-003 Significant Deficiency - I
587733 2022-004 Material Weakness - H
587734 2022-005 Significant Deficiency - B
587735 2022-006 Material Weakness - L

Contacts

Name Title Type
EK34L5LDJ8L6 Sally Worley Auditee
5152325661 David Little Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal award activity of Practical Farmers of Iowa (the Organization) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures are reported on the schedule on the accrual basis of accounting. Such expenditures are recognized following the cost principles obtained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Criteria: Uniform Guidance section 200.318 states non-Federal entities must maintain records sufficient to detail the history of procurements. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: For all four purchases selected for audit testing, we noted that written documentation on the selection method was not retained in the procurement file. Questioned costs: None Context: Four out of four items selected for testing of procurement and suspension and debarment did not have proper documentation. Cause: Written support was not retained in the procurement file at the time of the procurement. Effect: Procuring vendors without full and open competition. Repeat Finding: No Recommendation: We recommend the Organization review the various procurement requirements with the individuals involved in this process to ensure they understand the requirements. It is also recommended to review the policies and procedures around procurement to ensure key individuals are following them. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For one out of eight items selected for period of performance testing, we noted the expenses submitted for reimbursement were incurred outside of the grant period. Questioned costs: $29,670 Context: One out of eight items tested related to expenses incurred after the grant period ended. Cause: The Organization did not have an adequate system to evaluate when expenses were incurred compared to the grant period. Effect: Requesting grant funds for activities outside of the grant period. Repeat Finding: No Recommendation: We recommend the Organization implement a process to evaluate if expenses are eligible for reimbursement during the grant period. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Reimbursement was requested for the salary and benefits of one employee following her termination. Questioned costs: $3,282 Context: One out of forty items selected for testing of allowable costs did not have supporting documentation. Cause: The Organization did not have an adequate system to verify employee status before requesting reimbursement for payroll expenses. Effect: Requesting reimbursement for expenses that were not incurred. Repeat Finding: No Recommendation: We recommend the Organization review their policies and procedures to ensure reimbursement requests are properly supported before submission. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For ten out of ten reports selected for testing, documented review of the Executive Director was not present prior to submission. Questioned costs: None Context: Ten out of ten reports selected for testing did not contain documented review prior to submission. Cause: The Organization did not have an adequate system in place to ensure reports were reviewed in a timely manner. Effect: Submitting reports with potential errors. Repeat Finding: No Recommendation: We recommend the Organization implement documented reviews for all reports prior to submission. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: Uniform Guidance section 200.318 states non-Federal entities must maintain records sufficient to detail the history of procurements. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: For all four purchases selected for audit testing, we noted that written documentation on the selection method was not retained in the procurement file. Questioned costs: None Context: Four out of four items selected for testing of procurement and suspension and debarment did not have proper documentation. Cause: Written support was not retained in the procurement file at the time of the procurement. Effect: Procuring vendors without full and open competition. Repeat Finding: No Recommendation: We recommend the Organization review the various procurement requirements with the individuals involved in this process to ensure they understand the requirements. It is also recommended to review the policies and procedures around procurement to ensure key individuals are following them. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For one out of eight items selected for period of performance testing, we noted the expenses submitted for reimbursement were incurred outside of the grant period. Questioned costs: $29,670 Context: One out of eight items tested related to expenses incurred after the grant period ended. Cause: The Organization did not have an adequate system to evaluate when expenses were incurred compared to the grant period. Effect: Requesting grant funds for activities outside of the grant period. Repeat Finding: No Recommendation: We recommend the Organization implement a process to evaluate if expenses are eligible for reimbursement during the grant period. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Reimbursement was requested for the salary and benefits of one employee following her termination. Questioned costs: $3,282 Context: One out of forty items selected for testing of allowable costs did not have supporting documentation. Cause: The Organization did not have an adequate system to verify employee status before requesting reimbursement for payroll expenses. Effect: Requesting reimbursement for expenses that were not incurred. Repeat Finding: No Recommendation: We recommend the Organization review their policies and procedures to ensure reimbursement requests are properly supported before submission. Views of Responsible Officials: There is no disagreement with the audit finding.
Criteria: 2 CFR, Part 200, §200.303, requires an auditee to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: For ten out of ten reports selected for testing, documented review of the Executive Director was not present prior to submission. Questioned costs: None Context: Ten out of ten reports selected for testing did not contain documented review prior to submission. Cause: The Organization did not have an adequate system in place to ensure reports were reviewed in a timely manner. Effect: Submitting reports with potential errors. Repeat Finding: No Recommendation: We recommend the Organization implement documented reviews for all reports prior to submission. Views of Responsible Officials: There is no disagreement with the audit finding.