Audit 401525

Section III - Federal Award Findings and Questioned Costs Finding No. 2025-1 Statement of Condition The electronic submission of the financial statements is overdue. Criteria The financial statements must be electronically submitted to the Federal Audit Clearinghouse within the earlier of 9 months after fiscal year end or 30 days after the independent auditor’s final report date. Questioned Costs None Effect or potential effect The Organization is in non-compliance with specific requirements of a major federal program. Cause Controls were not sufficiently designed and implemented to ensure timely filing of the annual electronic submission to the Federal Audit Clearinghouse. Recommendation We recommend that the electronic submission be completed as soon as possible. Views of Responsible Officials and Planned Corrective Action Management acknowledges the late electronic submission of the annual audited financial statements to the Federal Audit Clearinghouse and has reviewed the circumstances surrounding the delay. Appropriate measures are being evaluated to support timely filings going forward.

Section III - Federal Award Findings and Questioned Costs Finding No. 2025-2 Statement of Condition Instances of material weakness with the tracking and allocation of certain allowable costs for the AL 10.182 Local Food Purchase Assistance Cooperative Agreement Program ("Federal Program"). Criteria The Organization must ensure proper internal controls are in place to support and allocate allowable costs to the Federal Program. Questioned Costs None Effect or potential effect Unallowable expenditures could be allocated to the Federal Program. Cause Certain controls were not sufficiently designed or documented to ensure consistent accuracy in tracking and allocating expenditures to the Federal Program. Recommendation We recommend the Organization implement stronger internal controls related to program requirements and update their cost allocation policy. Views of Responsible Officials and Planned Corrective Action Management takes the finding seriously and is committed to remediating the identified material weakness by strengthening internal controls, enhancing compliance processes, and supporting sustained adherence to all applicable federal program requirements and regulations. This was a pilot grant program. While all grant deliverables were met and intended programmatic outcomes achieved, certain cost allocation processes evolved as program operations progressed, presenting challenges in the tracking and allocation of certain shared costs across funding sources. Corrective actions have already begun in response to the specific audit finding and to further strengthen our continued effective administration of federally funded programs.