Audit 409019

Federal Program/Award Identification: 10.525 Farm and Ranch Stress Assistance Network (FRSAN) Federal Award Project Number: 2020-70028-32729, 2023-70028-41283, and 2024-70028-43314 Federal Award Project Year: 2020 through 2026 Name of Federal Agency: United States Department of Agriculture Name of the Applicable Pass-Through Entity: National Institute of Food and Agriculture Criteria: The Organization is required to evaluate the risk of subrecipient noncompliance and monitor the subrecipient’s activities, to ensure the federal funds are being used for their authorized purpose. Condition: We noted that management did not re-evaluate the subrecipient risks of noncompliance during the year ended December 31, 2024, nor did management test that the expenses being requested for reimbursement from the subrecipients were aligned with the activities and costs allowed under the federal program. Cause: The Organization had significant turnover during the year ended December 31, 2024, causing certain aspects of the system of internal controls to not operate effectively throughout the year. In addition, the Organization does not have a policy in place regarding subrecipient monitoring. Effect or Potential Effect: Subrecipients could have used funds for activities or costs that are unallowed by the federal program. Questioned Costs: None Context: UHY requested the risk assessments and evidence of the detailed review of expenses submitted to the Organization by the subrecipients to test the Organization’s monitoring, and no evidence was provided related to updated risk assessments or detailed testing of each expense included in the expense reimbursement submission. However, all reimbursement requests did obtain two approvals, as required by the Organization’s policies related to cash disbursements. Recommendation: We recommend the Organization design and implement an internal control to do annual risk assessment for all subrecipients. We also recommend the Organization design and implement an internal control to test a selection of invoices submitted for reimbursement from the subrecipients and document the conclusion regarding the compliance with activities and costs allowed by the program. Views of Responsible Officials and Planned Correction Action: See “Management’s Response and Corrective Action” plan section.

Federal Program/Award Identification: 10.525 Farm and Ranch Stress Assistance Network (FRSAN) Federal Award Project Number: 2020-70028-32729, 2023-70028-41283, and 2024-70028-43314 Federal Award Project Year: 2020 through 2026 Name of Federal Agency: United States Department of Agriculture Name of the Applicable Pass-Through Entity: National Institute of Food and Agriculture Criteria: The Organization is required to ensure that expenses are incurred prior to being submitted for reimbursement under the federal program. Condition: We noted that management was unable to tie expenses recorded on the SEFA to specific expense reimbursements for the year ended December 31, 2024. Cause: The Organization had significant turnover during the year ended December 31, 2024, causing certain aspects of the system of internal controls to not operate effectively throughout the year. Effect or Potential Effect: Expenses could have been requested for reimbursement multiple times or not reimbursed at all. Questioned Costs: None Context: UHY was unable to determine that expenses were incurred prior to the request for reimbursement being made. Recommendation: We recommend the Organization design and implement an internal control to ensure there is proper documentation retained of what expenses were included in each expense reimbursement request. In addition, a reconciliation of the reimbursements to the SEFA should be performed by management. Views of Responsible Officials and Planned Correction Action: See “Management’s Response and Correction Active” plan section.

Federal Program/Award Identification: 10.525 Farm and Ranch Stress Assistance Network (FRSAN) Federal Award Project Number: 2020-70028-32729, 2023-70028-41283, and 2024-70028-43314 Federal Award Project Year: 2020 through 2026 Name of Federal Agency: United States Department of Agriculture Name of the Applicable Pass-Through Entity: National Institute of Food and Agriculture Criteria: The Organization is required to have a written procurement policy that reflects application of state, local, and tribal laws and regulations, as well as conforming to federal law and procurement standards per 2 CFR 200.318(a) of the Uniform Guidance. Condition: We noted that the Organization does not have a procurement policy that meets the requirements of 2 CFR 200.318(a) of the Uniform Guidance. Cause: The Organization was unaware of what was required in the written policy. Effect or Potential Effect: Violations of 2 CFR 200.318(a) of the Uniform Guidance could occur. Questioned Costs: None Context: UHY reviewed the Organization’s procurement policy and determined it was not sufficient to meet the requirements of 2 CFR 200.318(a) of the Uniform Guidance Recommendation: We recommend the Organization establish a written procurement policy that meets the standards of 2 CFR 200.318(a) of the Uniform Guidance. Views of Responsible Officials and Planned Correction Action: See “Management’s Response and Correction Active” plan section.