Finding 2024-003: Late Submission of Audit Report to the Federal Audit Clearinghouse Information on the Federal Programs: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing No. 10.557 Federal Agency: U.S. Department of Agriculture Federal Award Identification Number: WIC-ARPA-MIS-STRAT-24 Federal Award Year: Year ended December 31, 2024 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matters Criteria: Title 2 CFR § 200.512(a)(1) requires the auditee to submit the reporting package and data collection form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The single audit reporting package for the Association’s year ended December 31, 2024, was due to the Federal Audit Clearinghouse by September 30, 2025. However, the data collection form and reporting package were not submitted by the required deadline due to delays in scheduling and completing the 2024 audit. Cause: The audit was delayed and did not commence as initially scheduled. As a result, the audit was not completed in sufficient time to allow the reporting package and data collection form to be submitted by the required deadline.Effect or Potential Effect: Untimely submission of the reporting package and data collection form results in noncompliance with the Uniform Guidance audit submission requirements and may affect the Association’s ability to qualify as a low-risk auditee in future audit periods. Questioned Costs: None. Context: This finding relates to the required submission of the single audit reporting package and data collection form for the year ended December 31, 2024. Because this requirement applies to the audit submission as a whole, no sample was selected. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend that the Association establish a detailed audit preparation and submission timeline immediately after year-end. The timeline should include responsibility for preparation of the SEFA, supporting schedules, reconciliations, management review, audit fieldwork milestones, and Federal Audit Clearinghouse submission. We also recommend that management monitor progress against the timeline and maintain regular communication with the auditors to help ensure the reporting package is submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after year-end.
Finding 2024-004: Suspension and Debarment Information on the Federal Programs: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing No. 10.557 Federal Agency: U.S. Department of Agriculture Federal Award Identification Number: WIC-ARPA-MIS-STRAT-24 Federal Award Year: Year ended December 31, 2024 Compliance Requirement: Procurement - Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other MattersCriteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): As stated in 2 CFR §200.303, the non-Federal entity (i.e. the Association) must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to 2 CFR §200.214, the non-Federal entity is subject to the non-procurement debarment and suspension regulations implementing Executive Orders 12549 and 12689, 2 CFR part 180. The regulations in 2 CFR part 180 restrict awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Condition: During our audit, we noted that the Association did not consistently perform or retain evidence of suspension and debarment checks through SAM.gov for applicable vendors, contractors, or consultants before entering into covered transactions. Cause: Management did not have effective internal controls in place to ensure that suspension and debarment checks were consistently performed and documented before entering into applicable contracts or other covered transactions. Effect or Potential Effect: The Association is exposed to an increased risk of entering into transactions with vendors, contractors, or consultants that are suspended, debarred, or otherwise excluded from participation in Federal programs. Such noncompliance could result in disallowed costs or other remedies available to the Federal awarding agency. Questioned Costs: None. Although the Association did not retain sufficient documentation to demonstrate that suspension and debarment checks were performed before entering into applicable transactions, we performed procedures to search the selected vendors, contractors, and consultants tested through SAM.gov. Based on those procedures, none of the selected parties tested were identified as suspended, debarred, or otherwise excluded from participation in Federal programs. Accordingly, no questioned costs were identified. Context: We selected 2 of 2 applicable vendor, contractor, or consultant agreements for suspension and debarment testing. The items selected were intended to be representative of the population tested. For 2 of 2 items tested, the Association did not provide documentation that a SAM.gov suspension and debarment check was performed before entering into the applicable transaction. Based on the nature of the control deficiency, the matter is considered systemic. Identification as a Repeat Finding, if Applicable: Not Applicable. Recommendation: We recommend that the Association implement internal controls requiring suspension and debarment screening before entering into any applicable contract or covered transaction funded by Federal awards. Evidence of the SAM.gov search should be retained in the vendor or contract file. We also recommend that the Association formalize a policy requiring periodic, at least annual, screening of existing vendors, contractors, and consultants that are expected to continue providing goods or services under Federal awards.