Finding 11291 (2022-004)

Material Weakness

Requirement

Questioned Costs

Year

2022

Accepted

2024-02-01

Audit: 15127

Organization: Practical Farmers of Iowa (IA)

Auditor: Cliftonlarsonallen

AI Summary

Core Issue: Expenses totaling $29,670 were submitted for reimbursement after the grant period ended.
Impacted Requirements: This violates 2 CFR, Part 200, §200.303, which mandates effective internal controls for managing federal awards.
Recommended Follow-Up: Implement a process to ensure expenses are evaluated for eligibility within the grant period.

Finding Text

Criteria: 2 CFR, Part 200, §200.303, requires an auditee to 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 the terms and conditions of the federal award. Condition: For one out of eight items selected for period of performance testing, we noted the expenses submitted for reimbursement were incurred outside of the grant period. Questioned costs: $29,670 Context: One out of eight items tested related to expenses incurred after the grant period ended. Cause: The Organization did not have an adequate system to evaluate when expenses were incurred compared to the grant period. Effect: Requesting grant funds for activities outside of the grant period. Repeat Finding: No Recommendation: We recommend the Organization implement a process to evaluate if expenses are eligible for reimbursement during the grant period. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the Organization implement a process to evaluate if expenses are eligible for reimbursement during the grant period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As mentioned above with the implementation of our new accounting software in March 2023, it allows for expenses and payments to be allocated to each grant as intended and drawn down specifically to that grant. In doing this, it allows for constant and consistent tracking for live to date tracking and allows for revenue and expenses to be reviewed and reported at any point in time. In allowing for constant tracking of this information it allows us to send out monthly and/or quarterly invoices for reimbursement from our grantors. Name(s) of the contact person(s) responsible for corrective action: Sally Worley, Executive Director, Kasey Bunce, Finance Director, Chastity Schonhorst Finance Coordinator, Alisha Bower, Senior Operations Director, Sarah Carlson, Senior Program & Member Engagement Director, and Christine Zrostlik, Marketing & Communications Director. Planned completion date for corrective action plan: This has already been implemented as of March, 2023.

Other Findings in this Audit

11290 2022-003

Significant Deficiency
11292 2022-005

Significant Deficiency
11293 2022-006

Material Weakness
587732 2022-003

Significant Deficiency
587733 2022-004

Material Weakness
587734 2022-005

Significant Deficiency
587735 2022-006

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
66.475	Gulf of Mexico Program	$540,809
10.912	Environmental Quality Incentives Program	$397,774
10.311	Beginning Farmer and Rancher Development Program	$191,482
10.443	Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers	$179,064
10.175	Farmers Market and Local Food Promotion Program (b)	$79,782
10.310	Agriculture and Food Research Initiative (afri)	$57,443
10.902	Soil and Water Conservation	$38,214
10.215	Sustainable Agriculture Research and Education	$26,478
10.170	Specialty Crop Block Grant Program - Farm Bill	$24,000
10.932	Regional Conservation Partnership Program	$10,306
10.182	Local Food Purchase Assistance	$7,042