Audit 32703

FY End

2022-07-31

Total Expended

$3.96M

Findings

2

Programs

4

Organization: Almond Board of California (CA)

Year: 2022 Accepted: 2022-11-21

Auditor: Moss Adams LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
34389	2022-001	Significant Deficiency	-	I
610831	2022-001	Significant Deficiency	-	I

ALN	Program	Spent	Major	Findings
10.601	Market Access Program	$3.59M	Yes	1
10.600	Foreign Market Development Cooperator Program	$216,430	-	0
10.170	Specialty Crop Block Grant Program - Farm Bill	$101,121	-	0
10.604	Technical Assistance for Specialty Crops Program	$49,106	-	0

Contacts

Name	Title	Type
C9HSE7LU9M33	Sara Geer	Auditee
2093433227	Brandon Vance	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Basis of presentation The accompanying schedule of expenditures of federal awards (the schedule) includesthe federal award activity of the Almond Board of California under programs of the federal government for theyear ended July 31, 2022. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selectedportion of the operations of the Board, it is not intended to and does not present the financial position, changes innet position, or cash flows of the Almond Board of California.Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance wherein certain types of expendituresare not allowable or are limited as to reimbursement.Federal awards received directly from federal agencies as well as federal awards passed through othergovernment agencies are included in the schedule. Pass-through entity identifying numbers are presented whereavailable.Relationship to federal financial reports Information included in the accompanying schedule of expendituresof federal awards is in substantial agreement with the information reported in the related financial reports formajor programs.Program costs The Board accounts for and reports on the costs of program activities covered under thefederal grant awards on the accrual basis of accounting. Such expenditures are recognized following the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or arelimited as to reimbursement. There were no indirect costs or salaries charged to the programs.Subrecipients The Board does not pass through funds to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001

Finding 2022-001: U.S. Department of Agriculture ? Foreign Agriculture Service; Market Access Program ? Assistance Listing No. 10.601; Grant period: Year Ended December 31, 2022 Criteria ? In accordance with 7 CFR 1485.29(d)(5), Market Access Program ("MAP") participants are required to conduct an appropriate form of competition every three years on all multi-year contracts that are governed by the contracting guidelines. Condition ? Management did not perform an appropriate form of competition in the timeframe required for costs reimbursed under the MAP. Questioned costs ? There are known questioned costs of $71,301 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context ? Inspection of procurement documentation showed one out of three vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed to approve vendor continuance in accordance with the small purchase threshold of 2 CFR 200.320(a)(2)(i). Price or rate quotations were not obtained and a formal assessment was not performed. Of the $3,591,906 of total MAP reimbursements claimed during the year, $133,831 of reimbursements are subject to this procurement requirement, including the known questioned costs of $70,301. Effect ? By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause ? Management believed the vendor provided specialized services and qualified as a sole source procurement, which does not require a form of competition be performed every three years. Repeat finding - N/A Recommendation ? We recommend management implement a control to review the procurement status of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response ? Management will perform an informal review process that includes obtaining quotes from similar vendors and performing a documented analysis of services and corresponding costs for the fiscal year 2022-23 and every three years going forward.

Finding 2022-001

Finding 2022-001: U.S. Department of Agriculture ? Foreign Agriculture Service; Market Access Program ? Assistance Listing No. 10.601; Grant period: Year Ended December 31, 2022 Criteria ? In accordance with 7 CFR 1485.29(d)(5), Market Access Program ("MAP") participants are required to conduct an appropriate form of competition every three years on all multi-year contracts that are governed by the contracting guidelines. Condition ? Management did not perform an appropriate form of competition in the timeframe required for costs reimbursed under the MAP. Questioned costs ? There are known questioned costs of $71,301 representing the reimbursements claimed for the vendor during the audit period. No likely questioned costs are noted. Context ? Inspection of procurement documentation showed one out of three vendors subjected to sampling required an adequate number of price or rate quotations from qualified sources to be obtained and assessment to be performed to approve vendor continuance in accordance with the small purchase threshold of 2 CFR 200.320(a)(2)(i). Price or rate quotations were not obtained and a formal assessment was not performed. Of the $3,591,906 of total MAP reimbursements claimed during the year, $133,831 of reimbursements are subject to this procurement requirement, including the known questioned costs of $70,301. Effect ? By not obtaining price or rate quotations from qualified sources, this could result in the utilization of an unqualified vendor, an overspending of grant funding, and questioned costs. Cause ? Management believed the vendor provided specialized services and qualified as a sole source procurement, which does not require a form of competition be performed every three years. Repeat finding - N/A Recommendation ? We recommend management implement a control to review the procurement status of all vendors being reimbursed by federal awards and ensure compliance with the Uniform Guidance and other applicable procurement standards. Management's response ? Management will perform an informal review process that includes obtaining quotes from similar vendors and performing a documented analysis of services and corresponding costs for the fiscal year 2022-23 and every three years going forward.