Federal Program: Beginning Farmers and Ranchers Development Grant Assistance Listing No.: 10.311 Federal Agency: U.S. Department of Agriculture Pass-Through Entity: None Federal Award Identification Number: 2022-49400-38205 Repeat Finding: This is not a repeat finding Criteria – Management is responsible for preparing a complete and accurate Schedule of Expenditures of Federal Awards. Condition – During compliance testing, it was determined that the Schedule of Expenditures of Federal Awards provided to us to begin our audit was not complete and accurate. Context – Management was unable to fully reconcile the Schedule of Expenditures of Federal Awards to the general ledger. Cause – The information contained in the Schedule of Expenditures of Federal Awards was not accurate. Effect – As a result of the condition, management was unable to fully reconcile the Schedule of Expenditures of Federal Awards to the general ledger. Recommendation – In the future, management should ensure it implements appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data. Views of Responsible Officials – Management acknowledges the finding and will implement appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data. Corrective Actions Taken or Planned – MOFGA created a SEFA to capture grant funds by CFDA number during the compliance audit. Grants are spread out throughout various lines of our chart of accounts, with no quick designation in QuickBooks Online for identifying which ones are private, state or federal funds. This was done manually for each income source (and complimentary expense line), and a few corrections were identified during the audit. We have received guidance from external partners about using Customer/Job functionality or Funder functionality in QBO for tracking of federal grants. This is being evaluated to help with the accuracy and expediting of report creation directly from our accounting software. Responsible Parties – Angela Haiss, Director of Operations Anticipated Completion Date – December 31, 2025