Finding 1156332 (2024-002)

Material Weakness Repeat Finding
Requirement
CL
Questioned Costs
-
Year
2024
Accepted
2025-09-29

AI Summary

  • Core Issue: The organization lacks proper review and approval processes for grant reimbursement requests and reporting.
  • Impacted Requirements: This situation violates 2 CFR 200.303, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: Implement stronger internal controls and oversight to ensure compliance and timely detection of issues.

Finding Text

2024-002 – Review of Grant Reimbursement Requests and Grant Reporting Federal Program AL 10.382 Meat and Poultry Intermediary Lending Program Criteria 2 CFR 200.303, Internal Controls, requires that recipients establish and maintain effective internal control over Federal awards that provides reasonable assurance that the recipient is managing Federal awards in compliance with Federal status, regulations and the terms and conditions of the Federal award. Condition There is a lack of review and approval over grant reimbursement requests and grant reporting prior to submission. Cause The Organization is new to receiving federal grant funding and therefore does not have all of the appropriate internal controls in place. Effect Noncompliance will not be prevented or detected and corrected in a timely manner. Recommendation We recommend the Organization review their internal controls over grant reimbursement requests and grant reporting to determine if additional procedures can be implemented. Compensating controls that mitigate the related risks could be provided through appropriate oversight of the performance of these functions. Views of Responsible Officials and Planned Corrective Actions See corrective action plan for response.

Corrective Action Plan

Contact Person Brenna Ohman, Finance Director Corrective Action Plan Management acknowledges that due to limited personnel there is not always proper segregation of duties. Starting in October 2025, Management will begin having another review and approve grant reimbursement requests and grant reporting prior to submission. Completion Date Rural Development Finance Corporation will implement the plan in 2025.

Categories

Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
10.382 Meat and Poultry Intermediary Lending Program $1.97M