FAC Explorer

Finding 11292 (2022-005)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2024-02-01
Audit: 15127
Organization: Practical Farmers of Iowa (IA)
Auditor: Cliftonlarsonallen

AI Summary

  • Core Issue: Reimbursement was requested for an employee's salary and benefits after her termination.
  • Impacted Requirements: Lack of effective internal controls over payroll expenses as required by 2 CFR, Part 200, §200.303.
  • Recommended Follow-Up: Review and improve policies to ensure all reimbursement requests are properly supported before submission.

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: Reimbursement was requested for the salary and benefits of one employee following her termination. Questioned costs: $3,282 Context: One out of forty items selected for testing of allowable costs did not have supporting documentation. Cause: The Organization did not have an adequate system to verify employee status before requesting reimbursement for payroll expenses. Effect: Requesting reimbursement for expenses that were not incurred. Repeat Finding: No Recommendation: We recommend the Organization review their policies and procedures to ensure reimbursement requests are properly supported before submission. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the Organization review their policies and procedures to ensure reimbursement requests are properly supported before submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Practical Famers of Iowa has hired a new Grants Finance Manager in August 2023. This was a new hire and new position within PFI. With the ability of the new accounting software to build budgets, apply expenses and deposits to specific grants and monitor reporting it required a Grants Finance Manager to assist with monitoring of this information. With the additional hire of the Grants Finance Manager, proper approval processes throughout all expenditures and deposits, it allows for accurate filing to be consistent from the start. Each grant has a grant owner, Heather Brown, Grants Finance Manager, builds the approved budget that was previously approved by Executive Staff, Sally Worley, Alisha Bowers, Kasey Bunce, Sarah Carlson and Christine Zrostlik. 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.

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 11290 2022-003
    Significant Deficiency
  • 11291 2022-004
    Material Weakness
  • 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