Finding 1157351 (2024-006)

Material Weakness Repeat Finding
Requirement
BC
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 lacks written procedures for cash management and allowable costs as required by Uniform Guidance.
  • Impacted Requirements: Non-compliance with 2 CFR 200.302(b)(6) and 2 CFR 200.302(b)(7) could lead to improper transactions.
  • Recommended Follow-Up: Draft and adopt necessary procedures by December 31, 2025, as agreed by management.

Finding Text

Criteria: Uniform Guidance requires written procedures for cash management and determining the allowability of costs in accordance with Subpart E – Cost Principles. Condition: The Organization did not have written procedures for cash management (2 CFR 200.302(b)(6)) and allowable costs determination (2 CFR 200.302(b)(7)) in accordance with Uniform Guidance requirements. Questioned Costs: $0 Cause: The Organization’s written policies and procedures were not updated to include required Uniform Guidance policies. Effect: Employees of the Organization could enter into a transaction that is not in compliance with Uniform Guidance requirements. Recommendation: We recommend the Organization draft and adopt written procedures in accordance with Uniform Guidance requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed and will implement the appropriate policies and procedures by December 31, 2025.

Corrective Action Plan

Management agrees with the finding and has developed and will implement the appropriate policies and procedures by December 31, 2025.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 1157348 2024-003
    Material Weakness Repeat
  • 1157349 2024-004
    Material Weakness Repeat
  • 1157350 2024-005
    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