Audit 372621

Agency: U.S. Department of Agriculture Federal Assistance Listing Number: 10.182, COVID-19: Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments Criteria: Eastern Market is required to submit its consolidated financial statement audit and audit of compliance described in the Uniform Guidance through the Federal Audit Clearinghouse within nine months after year-end. Statement of Condition: Eastern Market's reporting package was not completed and submitted to the Federal Audit Clearinghouse within nine months after year-end. Questioned Costs: The amount of questioned costs could not be determined. Context: The consolidated financial statements and reporting package were not submitted prior to the due date. Effect: Eastern Market was not in compliance with the reporting requirements of its contracts. Cause: Eastern Market engaged a new auditor for the December 31, 2024 consolidated financial statements. The consolidated financial statements required a restatement of the beginning net assets of Eastern Market and other adjustments. In addition, Eastern Market was in the process of a new general ledger implementation in the summer/fall of 2025. Recommendation: We recommend management continue their plan and timelines to complete the financial statement audit by the required due date. Management Response: Management acknowledges the finding and agrees with the recommendation. Many of the causes identified were unique to this current reporting period and will either not be present in the next reporting period or will enhance the reporting capabilities of Eastern Market to eliminate the risk going forward. Further, this was the first single audit for the staff and accounting department at Eastern Market which increased the risk of non-compliance. The staff now has this familiarity to ensure timely submission going forward.