Finding 1078897 (2020-005)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2020
Accepted
2024-10-10
Audit: 324478
Organization: The Kohala Center, Inc. (HI)
Auditor: N&k CPAS INC

AI Summary

  • Core Issue: The Organization lacks updated written policies and procedures required by 2 CFR §200 for compliance in key areas like cash management and grants management.
  • Impacted Requirements: Failure to maintain current policies affects compliance with federal laws, regulations, and grant agreements.
  • Recommended Follow-Up: Update the procedures manual to include references to current regulations and establish necessary internal controls.

Finding Text

Criteria: 2 CFR §200 requires written policies and procedures in various matters such as cash management, personnel compensation, and determination of allowability of costs in accordance with cost principles and terms of the federal awards, not all inclusive. Condition: The Organization is aware of the need for written policies and procedures over accounting, grants management, and financial reporting areas to ensure compliance with federal laws, regulations and grant agreements. However, the Organization did not have written policies and procedures with references to current regulations as required by 2 CFR §200. Cause: The Organization did not update its procedures manual to reflect the current references as required by 2 CFR §200. Effect: Without established polices and continuously updated written procedures required by 2 CFR §200, the Organization has insufficient internal controls over compliance with federal laws, regulations and grant agreements related to the federal awards it receives and expends.

Categories

Allowable Costs / Cost Principles Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 502455 2020-005
    Significant Deficiency
  • 502456 2020-006
    Significant Deficiency
  • 502457 2020-005
    Significant Deficiency
  • 1078898 2020-006
    Significant Deficiency
  • 1078899 2020-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.771 Rural Cooperative Development Grants $208,705
10.871 Socially-Disadvantaged Groups Grant $179,000
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $178,244
10.225 Community Food Projects $117,906
10.351 Rural Business Development Grant $88,514
66.509 Science to Achieve Results (star) Research Program $63,810
11.473 Office for Coastal Management $53,016
10.902 Soil and Water Conservation $36,723
66.951 Environmental Education Grants Program $27,390
10.458 Crop Insurance Education in Targeted States $22,353
12.300 Basic and Applied Scientific Research $21,425
10.170 Specialty Crop Block Grant Program - Farm Bill $19,971
11.463 Habitat Conservation $18,439
15.631 Partners for Fish and Wildlife $10,849
10.311 Beginning Farmer and Rancher Development Program $3,767
10.175 Farmers Market and Local Food Promotion Program $3,315
10.912 Environmental Quality Incentives Program $2,940
66.460 Nonpoint Source Implementation Grants $67