Finding 1186769 (2025-001)

U.S Department of Agriculture No. 10.565 – Commodity Supplemental Food Program Administrative Costs Grant Period Year Ended: September 30, 2025 Criteria: Time and effort for some payroll periods were allocated incorrectly. Condition and Context: We inspected three of twelve months of payroll allocations. We noted no review process of the allocation and related journal entries. Effect: Payroll was not correctly allocated based on time and effort to the grant for one of the five employees for each of the three months. Cause: The time and effort allocation was not consistent for one employee throughout the year. The allocation was not routinely reviewed to mitigate potential errors. Recommendation: Internal controls over the allocation of time and effort should be established and documented to ensure appropriate expenses are charged to the grant. Management Response: Review processes were implemented to ensure correct allocation of expenses, see corrective action plan.