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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023, Coastal Harvest lacked sufficient internal controls over
various federal awards processes surrounding compliance requirements for cash management, eligibility,
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,
2023. Further, as described in finding 2023-001, 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.
Repeat Finding: Yes, finding number 2022-004.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.
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, 2023. 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.
Repeat Finding: Yes, finding number 2022-005.
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.