Finding Text
Federal Agency: U.S. Department of Agriculture
Federal Program Name: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program; Food Insecurity Nutrition Incentive Grants Program
Assistance Listing Number: 10.561; 10.331
Pass-through Agency: The Pennsylvania State University; New Jersey Department of Health; National Institute of Food and Agriculture; State of California, Department of Food and Agriculture
Pass-through Number: S003654-COP; DFHS23SNA005; 2021-70034-34987; 2021-70034-35361;
22-1464-004-SF
Award Period: October 1, 2023 - September 30, 2024; June 15, 2021 - June 14, 2025; August 1, 2021 - July 31, 2026; January 1, 2023 - June 30, 2025
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria:
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs and allowable activities. The Organization should have procedures in place to ensure adequate controls designed to ensure personnel costs are documented with time and effort certifications.
Condition:
During our testing, we noted the organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications.
Questioned Costs:
None
Context:
During our testing, it was noted the organization did not have approval by a supervisor on time and effort certification for the actual time spent working on the program for seven employees for the Food Insecurity Nutrition Incentive Grants Program. In addition, the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program it was identified there were eight employees tested that did not have time and effort documented for their time spent working on the New Jersey Corner store program.
Cause:
The organization did not have policies and procedures in place during the fiscal year to adequately document and certify employees’ time and effort charged to the grant.Effect:
When an organization does not have adequate controls designed to ensure personnel costs are documented with time and effort certifications, it can lead to a lack of transparency and accountability in recording and reporting personnel costs. This can result in inaccurate financial statements and potential noncompliance with regulatory requirements.
Repeat Finding: Yes - see finding 2023-002.
Recommendation:
We recommend The Food Trust establish and implement controls that require employees to document their time and effort spent on various activities. Time and effort certifications should be regularly reviewed and approved by appropriate personnel to ensure accuracy and completeness of personnel cost documentation.
Viewed of Responsible Officials and Planned Corrective Actions:
Please refer to The Food Trust’s Corrective Action Plan.