Finding 1077648 (2023-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-10-01
Audit: 323477
Organization: Ufcw Charity Foundation, Inc. (DC)

AI Summary

  • Core Issue: The Foundation submitted inaccurate federal expenditure amounts on Form SF-425 due to a lack of reconciliation with financial records.
  • Impacted Requirements: Compliance with 2 CFR sections 200.328 and 200.329, which mandate accurate and timely financial reporting.
  • Recommended Follow-Up: Establish internal controls to ensure SF-425 amounts are reconciled and reviewed before submission.

Finding Text

Finding 2023-002: Reportable Finding Considered a Significant Deficiency – Reporting Assistance Listing Number: 10.181 Agency: U.S. Department of Agriculture Program: Pandemic Relief Activities: Farm and Food Worker Relief Program (FFWR) Award Number: AM22FFWDC0002-02 Grant Years: 2023 Criteria: The Performance and Financial Monitoring and Reporting guidelines outlined in 2 CFR sections 200.328 and 200.329 require that the Foundation submit Office of Management and Budget semi-annual financial reporting on Form SF-425. Condition: During our 2023 audit, we reviewed the Forms SF-425 submitted during the period which covered the periods November 4, 2022 through April 3, 2023 and April 4, 2023 through October 3, 2023. We reviewed the submissions for timely submission, that the reports were signed by a certifying official, and that the reports reconciled to the information obtained during the audit of the financial statements. For the SF-425 which covered the period November 4, 2022 through April 3, 2023 we could not reconcile the expenditures in the report to the underlying financial information. Cause: The Foundation did not reconcile the SF-425 to the financial records before submission. Effect: The Foundation reported erroneous amount of federal award expenditures on Form SF-425 for the period November 4, 2022 through April 3, 2023. Context: There were two SF-425 submissions during the year. Questioned Costs: There are no questioned costs associated with this finding. Repeat Finding: This is not a repeat finding. Recommendation: The Foundation should implement internal control procedures to ensure that the amounts reported in Form SF-425 are reconciled to the underlying financial records and reviewed before being signed by a certifying official and submitted. Views of Responsible Officials and Planned Corrective Actions: The views of responsible officials and planned corrective actions is included at the end of this report.

Categories

Reporting Subrecipient Monitoring Significant Deficiency

Other Findings in this Audit

  • 501205 2023-001
    Material Weakness
  • 501206 2023-002
    Significant Deficiency
  • 1077647 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.181 Pandemic Relief Activities: Farm and Food Worker Relief Grant Program $11.22M