Finding 1157348 (2024-003)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369638
Organization: Missouri Organic Association (MO)
Auditor: Kpm CPAS PC

AI Summary

  • Core Issue: The Organization did not follow Uniform Guidance by requesting payments in advance, violating 2 CFR 200.305.
  • Impacted Requirements: Inadequate oversight led to duplicate reimbursement requests and non-compliance with cash management rules.
  • Recommended Follow-Up: Regularly monitor budget and cash flows; management plans to hire a third-party accounting firm for support in summer 2024.

Finding Text

Criteria: Uniform Guidance requires payments to be based on reimbursement requests in accordance with 2 CFR 200.305. Condition: The Organization did not comply with the Uniform Guidance requirement to manage cash and requested payments in advance from the United States Department of Agriculture. Questioned Costs: $0 Cause: Inadequate oversight controls in the grant billing process resulted in duplicate Department of Agriculture reimbursement requests and funds received prior to issuing the related payments. Effect: The Organization was not in compliance with Uniform Guidance 2 CFR 200.305. Recommendation: We recommend the Organization monitors its budget and cash flows regularly. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and in the summer of 2024, the Organization contracted with a third party accounting company to provide services.

Corrective Action Plan

Management agrees with the finding and in the summer of 2024, contracted with an accounting company to provide services.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1157349 2024-004
    Material Weakness Repeat
  • 1157350 2024-005
    Material Weakness Repeat
  • 1157351 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.937 Partnerships for Climate-Smart Commodities $936,810
10.163 Market Protection and Promotion $361,995
10.902 Soil and Water Conservation $11,659