Audit 38158

FY End
2022-12-31
Total Expended
$802,976
Findings
14
Programs
9
Year: 2022 Accepted: 2023-09-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
41643 2022-001 Significant Deficiency - I
41644 2022-002 Significant Deficiency - I
41645 2022-001 Significant Deficiency - I
41646 2022-002 Significant Deficiency - I
41647 2022-001 Significant Deficiency - I
41648 2022-002 Significant Deficiency - I
41649 2022-003 Significant Deficiency - H
618085 2022-001 Significant Deficiency - I
618086 2022-002 Significant Deficiency - I
618087 2022-001 Significant Deficiency - I
618088 2022-002 Significant Deficiency - I
618089 2022-001 Significant Deficiency - I
618090 2022-002 Significant Deficiency - I
618091 2022-003 Significant Deficiency - H

Contacts

Name Title Type
Z1AXE15PHAL3 Edna Rodriguez Auditee
9195421396 Deetra Watson Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Rural Advancement Foundation International - USA under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (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. Because the Schedule presents only a selected portion of the operations of Rural Advancement Foundation International - USA it is not intended and does not present the financial position, changes in net assets, or cash flows of the Rural Advancement Foundation International - USA.X De Minimis Rate Used: N Rate Explanation: Rural Advancement Foundation International - USA has elected not to use the 10 percent de minimis indirect cost rate as allowed under theUniform Guidance.

Finding Details

Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.
Procurement: Implement Procurement Policy Guidelines. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to have written procedures for procurement transactions that ensure clear and accurate description of the technical requirements for material, products, or services. The procurement policy must define the number of quotes to obtain and the manner in which quotes should be obtained. Federal guidelines define three types of procurements: micro-purchases, items less than $10,000 which require no extensive documentation of procurement history; small purchases, items not to exceed $250,000 which require price and rate quotes from multiple qualified sources, and purchases greater than $250,000, for which the Organization must obtain sealed bids or competitive proposals. The Organization?s procurement policy does not require extensive documentation history for any purchases. Prior Year Audit Finding: N/A Cause and Effect: The Organization?s procurement policy does not comply with the applicable Federal requirements to provide open and full competition, nor does it address the requirements of the micro-purchase threshold or small purchase procedures. This has resulted in improper supporting documentation for all purchases greater than the micro-purchase threshold of $10,000. Context: For the year ended December 31, 2022, there was one procurement identified that exceeded the micro-purchase threshold totaling $24,533. The audit finding represents a systemic problem. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: We recommend the Organization update the procurement policy to be in compliance with the procurement Uniform Guidance guidelines. Management?s Response: Management is in agreement that the Organization?s policy does not properly reflect the Uniform Guidelines standards for procurement. Management will review the Organization?s policies and revise them as soon as possible to be in accordance with federal regulations.
Suspension and Debarment: Ensure Recipients of Federal Monies are not Suspended or Debarred. Federal Program Information: Sustainable Agriculture Research and Education Program (Assistance Listing 10.215), Food Insecurity Nutrition Incentive Grants Program (Assistance Listing 10.331), and Soil and Water Conservation Program (Assistance Listing 10.902). Condition and Criteria: Federal guidelines require all entities to ensure they are not entering into a covered transaction with another entity or individual that has been debarred, suspended, or otherwise excluded from receiving federal funds. The Organization did not have policies and procedures to ensure compliance with this federal requirement throughout the entire year. Prior Year Audit Finding: N/A Cause and Effect: The Organization did not have suspension and debarment policies and procedures in place for the entire year to ensure compliance with federal guidelines. This could have resulted in possible federal dollars being paid to a suspended or debarred entity or individual and resulted in the potential loss of funding. Context: The audit finding represents a systemic problem. No instances of noncompliance were noted. The sampling was a statistically valid sample. Questioned Costs: None. Recommendation: The Organization has experienced an increase in federal funding across multiple different programs during the current year. As the funding sources have increased and are likely to continue, it is imperative that the Organization implement and maintain policies and procedures to ensure compliance with all federal guidelines. Due to the increase in funding and changes in operations and programs, the Organization did revise its overall financial policies and procedures in August 2022, and specifically implemented a verification policy to ensure recipients of federal funds are eligible to receive federal funds. To maintain compliance with this federal regulation and all other federal regulations, we recommend for the policies and procedures to be reviewed on a regular basis to ensure there are no changes in federal requirements and that the policies and procedures are still adequate for the staffing and operations of the Organization. Management?s Response: Beginning in August 2022, we implemented a verification policy to ensure that recipients of federal funds are eligible to receive federal funds. We also checked our payees for the previous three years to ensure that no previous recipients were disbarred. We have also included this verification policy in our newest version of the financial policies.