FAC Explorer

Audit 356896

FY End
2024-09-30
Total Expended
$6.98M
Findings
2
Programs
1
Organization: Alabama Agricultural Development Authority (AL)
Year: 2024 Accepted: 2025-05-22
Auditor: Jackson Thornton & CO PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
561270 2024-001 Significant Deficiency - L
1137712 2024-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.382 Meat and Poultry Intermediary Lending Program $6.98M Yes 1

Contacts

Name Title Type
GZ9VNG3D8XC3 Patti G Perdue Auditee
3342407245 Katie Vega Schmidt Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: Reporting Entity - Alabama Agricultural Development Authority, a public corporation, is administratively located within the Alabama Department of Agriculture and Industries office. Basis of Accounting - The Authority maintains its accounts on the accrual basis of accounting. Restricted Assets - USDA requires that certain funds be maintained by the Authority in a separate bank account to lend to various agricultural-related entities in the form of revolving loans. Operating Revenues and Expenses - Operating revenues and expenses generally result from administering revolving loans for agricultural related activity, which is the Authority's principal ongoing operations. The principal operating revenues of the Authority are intermediary grants with the purpose of issuing those grants in the form of revolving loans to qualified agricultural businesses. Operating expenses include the costs to administer and approve prospective borrowers. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. De Minimis Rate Used: N Rate Explanation: Only direct costs of the program were reported as costs of the program. Reporting Entity - Alabama Agricultural Development Authority, a public corporation, is administratively located within the Alabama Department of Agriculture and Industries office.
Title: Basis of Accounting Accounting Policies: Reporting Entity - Alabama Agricultural Development Authority, a public corporation, is administratively located within the Alabama Department of Agriculture and Industries office. Basis of Accounting - The Authority maintains its accounts on the accrual basis of accounting. Restricted Assets - USDA requires that certain funds be maintained by the Authority in a separate bank account to lend to various agricultural-related entities in the form of revolving loans. Operating Revenues and Expenses - Operating revenues and expenses generally result from administering revolving loans for agricultural related activity, which is the Authority's principal ongoing operations. The principal operating revenues of the Authority are intermediary grants with the purpose of issuing those grants in the form of revolving loans to qualified agricultural businesses. Operating expenses include the costs to administer and approve prospective borrowers. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. De Minimis Rate Used: N Rate Explanation: Only direct costs of the program were reported as costs of the program. Basis of Accounting - The Authority maintains its accounts on the accrual basis of accounting. Restricted Assets - USDA requires that certain funds be maintained by the Authority in a separate bank account to lend to various agricultural-related entities in the form of revolving loans.
Title: Operaating Revenues and Expenses Accounting Policies: Reporting Entity - Alabama Agricultural Development Authority, a public corporation, is administratively located within the Alabama Department of Agriculture and Industries office. Basis of Accounting - The Authority maintains its accounts on the accrual basis of accounting. Restricted Assets - USDA requires that certain funds be maintained by the Authority in a separate bank account to lend to various agricultural-related entities in the form of revolving loans. Operating Revenues and Expenses - Operating revenues and expenses generally result from administering revolving loans for agricultural related activity, which is the Authority's principal ongoing operations. The principal operating revenues of the Authority are intermediary grants with the purpose of issuing those grants in the form of revolving loans to qualified agricultural businesses. Operating expenses include the costs to administer and approve prospective borrowers. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. De Minimis Rate Used: N Rate Explanation: Only direct costs of the program were reported as costs of the program. Operating Revenues and Expenses - Operating revenues and expenses generally result from administering revolving loans for agricultural related activity, which is the Authority's principal ongoing operations. The principal operating revenues of the Authority are intermediary grants with the purpose of issuing those grants in the form of revolving loans to qualified agricultural businesses. Operating expenses include the costs to administer and approve prospective borrowers. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

Finding Details

Finding 2024-001
Identification of the Federal Program - Meat and Poultry Intermediary Lending Program - Assistance Listing Number 10.382. Criteria - The criteria is based on the guidelines and regulations set forth by the funding agency, the United States Department of Ariculture and the Compliance and Reporting Guidance included in the grant agreements. According to these requirements, recipients must submit Federal financial reports 30 days after the close of the reporting period to ensure timely accounting of the use of USDA funds. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the Authority to ensure certain reports were prepared in a timely manner. Effect - There were three reporting periods during the fiscal year under audit. The reports for two reporting periods were not submitted timely. The semiannual reports were not submitted within 30 days after period end. Cause - The Authority's policies and procedures over federal award reporting were not adequate. Recommendation - The Authority should implement policies and procedures related to federal award reporting to comply with reporting requirements. Views of Responsible Officials - The Authority agrees with the finding. The Authority will implement additional oversight over the timely preparation and submittal of required grant reporting documents.
Finding 2024-001
Identification of the Federal Program - Meat and Poultry Intermediary Lending Program - Assistance Listing Number 10.382. Criteria - The criteria is based on the guidelines and regulations set forth by the funding agency, the United States Department of Ariculture and the Compliance and Reporting Guidance included in the grant agreements. According to these requirements, recipients must submit Federal financial reports 30 days after the close of the reporting period to ensure timely accounting of the use of USDA funds. 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. Condition - There was a lack of monitoring and appropriate review by the Authority to ensure certain reports were prepared in a timely manner. Effect - There were three reporting periods during the fiscal year under audit. The reports for two reporting periods were not submitted timely. The semiannual reports were not submitted within 30 days after period end. Cause - The Authority's policies and procedures over federal award reporting were not adequate. Recommendation - The Authority should implement policies and procedures related to federal award reporting to comply with reporting requirements. Views of Responsible Officials - The Authority agrees with the finding. The Authority will implement additional oversight over the timely preparation and submittal of required grant reporting documents.