FAC Explorer

Audit 15891

FY End
2021-06-30
Total Expended
$2.37M
Findings
22
Programs
5
Organization: Coastal Harvest (WA)
Year: 2021 Accepted: 2024-02-06
Auditor: Greenwood Ohlund Ps

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11925 2021-003 Material Weakness - CN
11926 2021-003 Material Weakness - CN
11927 2021-003 Material Weakness - CN
11928 2021-003 Material Weakness - CN
11929 2021-003 Material Weakness - L
11930 2021-003 Material Weakness - L
11931 2021-003 Material Weakness - L
11932 2021-004 Material Weakness - N
11933 2021-004 Material Weakness - N
11934 2021-004 Material Weakness - N
11935 2021-004 Material Weakness - N
588367 2021-003 Material Weakness - CN
588368 2021-003 Material Weakness - CN
588369 2021-003 Material Weakness - CN
588370 2021-003 Material Weakness - CN
588371 2021-003 Material Weakness - L
588372 2021-003 Material Weakness - L
588373 2021-003 Material Weakness - L
588374 2021-004 Material Weakness - N
588375 2021-004 Material Weakness - N
588376 2021-004 Material Weakness - N
588377 2021-004 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.569 Emergency Food Assistance Program (food Commodities) $1.01M Yes 2
10.187 The Emergency Food Assistance Program (tefap) Commodity Credit Corporation Eligible Recipient Funds - Trade Mitigation Program $449,590 - 0
10.565 Commodity Supplemental Food Program $164,401 Yes 2
21.019 Coronavirus Relief Fund $66,047 Yes 1
10.568 Emergency Food Assistance Program (administrative Costs) $58,922 Yes 2

Contacts

Name Title Type
FYDWAAP84ZE5 Brent Hunter Auditee
3605326315 Andrew Van Ness Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Coastal Harvest has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance for the year ended June 30, 2021. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Coastal Harvest under programs of the federal government for the year ended June 30, 2021. The information in the 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 Coastal Harvest, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Coastal Harvest.

Finding Details

Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-003
Federal Agency: U.S. Department of Agriculture Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Federal Agency: U.S. Department of the Treasury Assistance Listing Number: 21.019 Federal Program Name: Coronavirus Relief Fund Pass-through Entity: Washington State Department of Agriculture Pass-through Award Numbers: K2720, K3361, K3396 Criteria: Under 2 CFR 200.303(a), the non-federal entity must establish and maintain effective internal control over federal awards. Condition: During the year ended June 30, 2021, Coastal Harvest lacked sufficient internal controls over various federal awards processes surrounding compliance requirements for cash management, reporting, and special tests and provisions. We have determined this to be a material weakness in internal control over compliance. Cause: Coastal Harvest had limited management and administrative staff during the year ended June 30, 2021. Further, as described in finding 2021-001, there were no written procedures in place to assign specific tasks to separate individuals. Effect: Inadequate controls could lead to noncompliance with compliance requirements that are material to the Organization, which may ultimately result in decreased funding for the Organization. Recommendation: We recommend that management develops and implements internal controls over compliance with federal awards in accordance with the requirements of the Uniform Guidance. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.
Finding 2021-004
Assistance Listing Numbers: 10.565, 10.568, and 10.569 Federal Program Names: Food Distribution Cluster Pass-through Entity: Washington State Department of Agriculture Pass-through Award Number: K2764 Criteria: Special tests and provisions for the Food Distribution Cluster program require the non-federal entity maintains accurate and complete records with respect to the receipt, distribution/use, and inventory of USDA food commodities donations. Condition: Coastal Harvest did not have sufficient records of its USDA food inventory balances and activity as of and for the year ended June 30, 2021. As amounts and activity for the year could not be substantiated, we have qualified our opinion on this program. Cause: As a result of the coronavirus outbreak in early 2020 and the continued economic impacts to the community, Coastal Harvest experienced rapid and significant operational growth including an influx of USDA food commodities donations. Further, the Organization previously followed the modified cash basis of accounting under which inventory was not recognized in the financial statements. Effect: Coastal Harvest was not in compliance with recordkeeping requirements for the major federal program. Questioned Costs: Indeterminable. Recommendation: We recommend that management implements a tracking system that sufficiently identifies receipts, distribution/use, and inventory on hand of USDA foods. Views of Responsible Officials: There is no disagreement with the finding.