Finding Text
Condition: The auditee did not submit three out of four required quarterly Federal Financial Reports SF-425. Criteria: The grant agreement with the U.S. Department of Agriculture stipulates that the auditee is required to file quarterly Federal Financial Reports SF-425. Further, 2 CFR 200.303 requires the auditee to establish and maintain effective internal controls over compliance. Cause: Staff turnover caused certain administrative tasks to be more challenging, which hindered internal controls over compliance with the requirement to file quarterly reports. Effect: The auditee failed to submit three out of four required quarterly Federal Financial Report SF-425, resulting in potential noncompliance with the requirements of the federal award. Recommendation: We recommend the auditee establish, document, and maintain procedures and controls to ensure the required quarterly reports are submitted timely. Management’s Response: See management's response dated May 25, 2026.