Finding 1226412 (2024-006)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2026-08-13
Audit: 409019
Auditor: UHY LLP

AI Summary

  • Core Issue: Management couldn't link expenses on the SEFA to specific reimbursements for 2024.
  • Impacted Requirements: Expenses must be incurred before reimbursement requests under federal guidelines.
  • Recommended Follow-Up: Implement controls to document expenses for reimbursement and reconcile them with the SEFA.

Finding Text

Federal Program/Award Identification: 10.525 Farm and Ranch Stress Assistance Network (FRSAN) Federal Award Project Number: 2020-70028-32729, 2023-70028-41283, and 2024-70028-43314 Federal Award Project Year: 2020 through 2026 Name of Federal Agency: United States Department of Agriculture Name of the Applicable Pass-Through Entity: National Institute of Food and Agriculture Criteria: The Organization is required to ensure that expenses are incurred prior to being submitted for reimbursement under the federal program. Condition: We noted that management was unable to tie expenses recorded on the SEFA to specific expense reimbursements for the year ended December 31, 2024. Cause: The Organization had significant turnover during the year ended December 31, 2024, causing certain aspects of the system of internal controls to not operate effectively throughout the year. Effect or Potential Effect: Expenses could have been requested for reimbursement multiple times or not reimbursed at all. Questioned Costs: None Context: UHY was unable to determine that expenses were incurred prior to the request for reimbursement being made. Recommendation: We recommend the Organization design and implement an internal control to ensure there is proper documentation retained of what expenses were included in each expense reimbursement request. In addition, a reconciliation of the reimbursements to the SEFA should be performed by management. Views of Responsible Officials and Planned Correction Action: See “Management’s Response and Correction Active” plan section.

Corrective Action Plan

Planned Corrective Action: While the Organization’s existing internal controls address management of invoices and payments, there was no written process within the organization’s internal controls that identified the required documentation, workpapers, review, and approval for federal grant reimbursements. Planned Implementation Date of Corrective Action: October 1, 2025 Name of Contact Person: Melinda Lequin, Executive Finance Director

Categories

Questioned Costs Subrecipient Monitoring Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1226411 2024-005
    Material Weakness Repeat
  • 1226413 2024-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.525 FARM AND RANCH STRESS ASSISTANCE NETWORK COMPETITIVE GRANTS PROGRAM $384,955
10.234 AMERICAN RESCUE PLAN TECHNICAL ASSISTANCE INVESTMENT PROGRAM $147,953
10.170 SPECIALTY CROP BLOCK GRANT PROGRAM - FARM BILL $36,353
10.500 COOPERATIVE EXTENSION SERVICE $21,057
10.181 PANDEMIC RELIEF ACTIVITIES: FARM AND FOOD WORKER RELIEF GRANT PROGRAM $20,255
10.215 SUSTAINABLE AGRICULTURE RESEARCH AND EDUCATION $16,415