FAC Explorer

Audit 322635

FY End
2023-12-31
Total Expended
$21.57M
Findings
2
Programs
4
Organization: Cotton Council International (DC)
Year: 2023 Accepted: 2024-09-30
Auditor: Aprio

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499788 2023-001 Significant Deficiency - L
1076230 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.601 Market Access Program $15.74M - 0
10.600 Foreign Market Development Program $4.77M Yes 1
10.618 Agriculture Trade Promotion Program $777,647 - 0
10.603 Emerging Markets Program $279,934 - 0

Contacts

Name Title Type
N1FMQ8DBKLM8 Delorise Winter Auditee
2027457805 Greg Plotts Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Cotton Council International (the “Council”) under programs with the federal government for the year ended December 31, 2023. 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 Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council. De Minimis Rate Used: N Rate Explanation: Cotton Council International did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Cotton Council International (the “Council”) under programs with the federal government for the year ended December 31, 2023. 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 Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council.
Title: Summary of significant accounting policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Cotton Council International (the “Council”) under programs with the federal government for the year ended December 31, 2023. 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 Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council. De Minimis Rate Used: N Rate Explanation: Cotton Council International did not elect to use the ten percent de minimis indirect cost rate allowed under the 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.
Title: Indirect cost rate Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Cotton Council International (the “Council”) under programs with the federal government for the year ended December 31, 2023. 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 Council, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Council. De Minimis Rate Used: N Rate Explanation: Cotton Council International did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. The Council did not elect to use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Compliance requirement: Reporting Criteria: According to 2 CFR 1484.70(d), the compliance requirements for programs to help develop foreign markets for agricultural commodities, cooperators are required to submit regular financial and performance reports in accordance with their agreement. For non-local travel, cooperators are required to submit trip reports within 45 calendar days after the completion of travel. Condition: During our testing of reporting compliance, out of a sample of 20 reports, one trip report was submitted after the required 45 days upon return from the trip. When we reviewed the total population of 201 reports, we noted that a total of 6 trip reports were not submitted within the required 45 days. Cause: The auditee is aware of the compliance requirement but due to an administrative oversight, some trip reports were submitted late. Effect: The auditee was not in compliance with reporting requirements outlined in the compliance requirement 2 CFR 1484.70(d), resulting in untimely federal award data reporting. Repeat finding: This is not a repeat finding. Recommendation: We recommend that the Organization update their policies and procedures surrounding the submission of reports, and specifically trip reports, to ensure the appropriate individual(s) know their roles in relation to timely trip reporting and are aware of strict reporting deadlines.
Finding 2023-001
Compliance requirement: Reporting Criteria: According to 2 CFR 1484.70(d), the compliance requirements for programs to help develop foreign markets for agricultural commodities, cooperators are required to submit regular financial and performance reports in accordance with their agreement. For non-local travel, cooperators are required to submit trip reports within 45 calendar days after the completion of travel. Condition: During our testing of reporting compliance, out of a sample of 20 reports, one trip report was submitted after the required 45 days upon return from the trip. When we reviewed the total population of 201 reports, we noted that a total of 6 trip reports were not submitted within the required 45 days. Cause: The auditee is aware of the compliance requirement but due to an administrative oversight, some trip reports were submitted late. Effect: The auditee was not in compliance with reporting requirements outlined in the compliance requirement 2 CFR 1484.70(d), resulting in untimely federal award data reporting. Repeat finding: This is not a repeat finding. Recommendation: We recommend that the Organization update their policies and procedures surrounding the submission of reports, and specifically trip reports, to ensure the appropriate individual(s) know their roles in relation to timely trip reporting and are aware of strict reporting deadlines.