Audit 308773

FY End
2023-12-31
Total Expended
$957,512
Findings
8
Programs
11
Year: 2023 Accepted: 2024-06-13

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
400758 2023-001 Significant Deficiency Yes I
400759 2023-001 Significant Deficiency Yes I
400760 2023-001 Significant Deficiency Yes I
400761 2023-001 Significant Deficiency Yes I
977200 2023-001 Significant Deficiency Yes I
977201 2023-001 Significant Deficiency Yes I
977202 2023-001 Significant Deficiency Yes I
977203 2023-001 Significant Deficiency Yes I

Contacts

Name Title Type
Z1AXE15PHAL3 Edna Rodriguez Auditee
9195421396 Deetra Watson Auditor
No contacts on file

Notes to SEFA

Title: NOTES TO SCHEDULE OF FEDERAL AWARDS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Rural Advancement Foundation International - USA under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the Schedule presents only a selected portion of the operations of Rural Advancement Foundation International - USA it is not intended and does not present the financial position, changes in net assets, or cash flows of the Rural Advancement Foundation International - USA. De Minimis Rate Used: N Rate Explanation: Rural Advancement Foundation International - USA has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Rural Advancement Foundation International - USA under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the Schedule presents only a selected portion of the operations of Rural Advancement Foundation International - USA it is not intended and does not present the financial position, changes in net assets, or cash flows of the Rural Advancement Foundation International - USA.
Title: NOTES TO SCHEDULE OF FEDERAL AWARDS Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Rural Advancement Foundation International - USA under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Because the Schedule presents only a selected portion of the operations of Rural Advancement Foundation International - USA it is not intended and does not present the financial position, changes in net assets, or cash flows of the Rural Advancement Foundation International - USA. De Minimis Rate Used: N Rate Explanation: Rural Advancement Foundation International - USA has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Rural Advancement Foundation International - USA has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.
2023-001 Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Farmers Market and Local Food Promotion Program (Assistance Listing 10.175 and Soil and Water Conservation Program (Assistance Listing 10.902) Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization did not have a procurement policy in place to cover the full fiscal year. Prior Year Audit Finding: 2022-002 Cause and Effect: The Organization’s procurement policy was not adopted until December 2023. This has resulted in improper supporting documentation for all purchases greater than the micropurchase threshold of $10,000 prior to that date. Context: For the year ended December 31, 2023, there was no purchases procurement identified that exceeded the micro-purchase threshold. Questioned Costs: None. Recommendation: The Organization adopted the procurement policy in December 2023. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management’s Response: Management is in agreement that the Organization’s policy did not properly reflect the Uniform Guidelines standards for procurement since the policy did not cover the full fiscal year. Management has implemented the policy effective December 2023 and will review and update the policy on a regular basis.