Finding Text
Federal Agency: U.S. Department of Agriculture Federal Program: Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) AL Number: 10.557 Award Period: 4/1/25 - 3/31/26 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Compliance Criteria or Specific Requirement According to §200.303 Internal controls of 2 CFR Part 200, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition and Context During our testing of the completeness of the expenditure detail allocated to the federal award we noted Organization was unable to identify the detail/support for $12,684 of expenditures invoiced to the grant. Also, as part of our payroll testing we noted two samples where the Organization was not maintaining accurate records to support the fringe benefit payroll costs allocated to the grant. Effect Potential that incorrect costs could be allocated to the grant. Questioned Costs $13,108 Cause Management oversight in which documentation of expenditures allocated to the grant were not retained by the organization and fringe benefit allocations were not updated and reviewed. Recommendation We recommend the Organization update their grant allocation process and controls to ensure accurate documentation of expenditures allocated to the grant are retained and accurate fringe benefit costs incurred during the month are used to calculate the allocations. Views of Responsible Officials The Organization has updated the grant allocation process and controls to ensure accurate documentation of expenditures allocated to the grant are retained and accurate fringe benefit costs incurred during the month are used to calculate the allocations. As part of this update management has reassigned responsibilities for various grants to ensure the process is followed.